Pierre Gasly‘s decision to reside in Milan, Italy, rather than the glamorous tax haven of Monaco, stems from residency tax restrictions placed on French citizens. Despite Monaco being a favored destination for many Formula 1 drivers due to its tax benefits, luxury lifestyle, and central location in Europe, Gasly faces unique challenges due to his French nationality. Unlike drivers from other countries, Gasly is unable to enjoy the full financial perks of Monaco’s tax-free status because of existing French tax laws.
Monaco has become a popular residence for athletes like F1 drivers, offering them significant tax savings. Most non-French citizens who live there can avoid paying considerable income taxes in their home countries. However, Pierre Gasly is unable to take advantage of this, as highlighted by F1 photojournalist Kym Illman. Illman explained, “Unlike almost every other country, France has a special agreement with Monaco: if you’re a French citizen, even if you live in Monaco, you still owe taxes to France.” This disclosure underlines the hurdles Gasly faces in potentially residing in the principality.
By remaining a resident of France, Gasly incurs substantial taxes on his earnings, including his $10 million F1 salary. Such financial obligations diminish the feasibility of maintaining a lifestyle in Monaco, where living costs are exorbitant, especially given the real estate prices on the picturesque French Riviera. Though the environmental allure of the Mediterranean climate is tempting, the necessity to pay high taxes pushes him towards a more financially sensible residence in Milan, where living costs and tax implications are more manageable for him.
While high-profile drivers like Lewis Hamilton and Max Verstappen earn upwards of $60 million, Gasly is not yet in the same earnings league. If Gasly were to consider Monaco, he would also need to disburse substantial initial payments to establish residency, around $548,000 to $3.8 million. In contrast, Monegasque natives, such as Gasly’s friend Charles Leclerc, naturally sidestep these financial prerequisites, reinforcing the inequities caused by the specific tax agreement affecting French citizens like Gasly and his former teammate Esteban Ocon, who opts for Swiss residence.
The intricacies of Pierre Gasly’s residency choices highlight the broader implications of international tax laws on professional athletes. Though Monaco’s appealing tax conditions draw numerous F1 personalities, French nationals are left to balance prestige against fiscal realities. As Gasly continues his career with Alpine, understanding these constraints becomes crucial for maximizing his financial strategy while he navigates the challenges of Formula 1 racing.
