Monaco has become the default home base for Formula 1 drivers. Out of the current grid, roughly 14 or 15 drivers live there, depending on how you classify a couple of borderline cases. For such a tiny place, that is a remarkable concentration of elite sporting talent.

The obvious question is why.

The short answer is money, convenience, privacy, weather, and the fact that once enough drivers settle there, the rest have even more reason to join them. Monaco is not just a glamorous address. For an F1 driver, it is an unusually practical one.

Tax is the headline reason

The big draw is Monaco’s personal tax system. Residents generally do not pay personal income tax on salary, sponsorship income, or other personal earnings. For drivers whose annual income can climb into the tens of millions, and for a few into the 9 figures, that is a massive advantage.

That does not mean an F1 driver automatically pays no tax anywhere. Drivers can still be taxed in countries where they race or work, and in some places those calculations are done by the day. That is one reason many arrive as late as possible and leave quickly once race duties are done.

If a top driver earns around $100,000,000 a year, each day of that income is worth roughly $274,000. In a country with a high tax rate, even a single extra day can become expensive in a hurry.

So yes, Monaco offers a tremendous tax advantage, but it is not some magical place where global obligations disappear entirely. It simply gives high earners a very efficient base.

Monaco also makes race travel absurdly easy

For drivers constantly shuttling between factories, sponsor events, training camps, and race weekends, location matters. Monaco sits in a prime spot on the Mediterranean, right next to Nice, which gives easy access to one of the region’s key airports. Many drivers use helicopters to jump between Monaco and Nice before private flights.

When a lot of the grid lives in the same place, travel becomes even simpler. Shared flights become more practical, schedules align, and the whole routine becomes smoother. Lando Norris has cited not only the tax setup, but also the weather and the fact that so many of his peers live there.

Then there is the Monaco Grand Prix itself. For Monaco residents, one race each year comes with no hotel check-in, no commute from some distant base, and no need to uproot their entire routine. A driver can get to the paddock by scooter, bike, or even by boat depending on where they live.

That is as close to a home game as Formula 1 gets.

Privacy matters more than people realize

Plenty of drivers could choose London, Los Angeles, Madrid, Milan, or New York. But those places bring more noise, more attention, and more disruption.

Monaco gives famous athletes a degree of breathing room. It is known for being less intrusive, and the local environment is more controlled than in many major cities. That matters when your face is recognizable around the world.

George Russell has spoken about how life changed after joining Mercedes. In Britain, casual errands became harder once his profile rose. Monaco offers a more manageable kind of visibility.

For drivers, that means they can still go out, meet friends, grab a coffee, train, or move around town without turning every small outing into a public event.

Why Port Fontvieille is such a magnet

If Monaco is the hub, Port Fontvieille is one of its driver hotspots. It is a little quieter than some other parts of the principality, and it sits close to the helicopter port. That combination makes it ideal for people who value both calm and efficiency.

A number of drivers have lived there over the years, and it has a bit of a community feel within the F1 world. Friends are nearby, transport links are handy, and the area offers easier day to day movement than some of the more crowded corners of Monaco.

That said, not every driver lives in the same pocket. Some are based closer to the casino, and others opt for newer prestige developments.

The ultra luxury end is eye watering

Monaco property is serious business. Max Verstappen moved to Monaco at the end of 2015, initially living in Fontvieille before later relocating to the new Mareterra district. This is reclaimed land, newly built, ultra exclusive, and priced accordingly.

The figures are hard to ignore. Top end property there can reach around $100,000 per square metre, and some villas in the district have been rumored to sell for around $200,000,000 each.

Even at the more normal luxury end, the rental market is steep. A 4 bedroom apartment can run to around $51,000 per month plus service charges. At the lower end, a 40 square metre apartment can still cost close to $5,000 per month before extra charges.

Bargains are not really part of the Monaco vocabulary.

Which drivers live in Monaco

The Monaco group includes several of the biggest names on the grid.

• Max Verstappen
• Lando Norris
• Lewis Hamilton
• George Russell
• Oscar Piastri, who moved there in 2024
• Charles Leclerc
• Carlos Sainz, who resisted the move until 2024
• Nico Hülkenberg
• Franco Colapinto
• Valtteri Bottas
• Liam Lawson
• Gabriel Bortoleto
• Oliver Bearman

Several younger drivers have followed the same path. That is no surprise. Once a driver is earning well and traveling constantly, Monaco starts to look less like a fantasy and more like a logical operating base.

Which drivers do not live in Monaco

Not everyone buys into the Monaco model.

Kimi Antonelli lives in San Marino. Esteban Ocon is based in Geneva. Isack Hadjar lives in Paris, and Pierre Gasly in Milan. Lance Stroll has chosen London. Arvid Lindblad still lives in England.

Fernando Alonso is the uncertain one. He is associated with Switzerland, Monaco, and Spain, so pinning down a single answer is difficult. Sergio Perez is a Swiss resident for tax purposes and spends time in both Mexico and Madrid.

These exceptions usually come down to personal preference, family life, tax rules in their own country, or simply where they feel most comfortable.

Why French drivers often stay away

There is an important wrinkle with French residents. Monaco’s special tax appeal does not work the same way for them, because France has a longstanding arrangement with Monaco that still pulls French residents into the French tax net.

That is part of the reason some French drivers choose to live elsewhere rather than move just a short distance to the principality. If the tax upside is reduced or removed, the decision becomes much more personal and less financial.

Canada and other special cases

Different nationalities face different rules. There is also a suggestion that Canadians may need to take much more drastic steps, potentially including giving up citizenship, to fully benefit from Monaco’s 0% income tax setup. That is one reason Lance Stroll remains in London rather than relocating to Monaco despite easily being able to afford it.

For Australians and Canadians, there is another factor. Both countries can tax income earned while competing on home soil. So for drivers from those nations, Monaco does not erase every tax complication.

How Monaco can afford no income tax

A natural question follows. If residents are not paying personal income tax, how does Monaco fund itself?

The answer is that the country has other strong revenue streams and relatively limited obligations.

• The government benefits from the harbour
• The casino and luxury hotels generate substantial revenue
• VAT contributes to public finances
• Major events such as the Monaco Grand Prix and the Monte Carlo tennis tournament bring in money
• There are property related taxes as well

Monaco is also tiny, around 2 kilometres by roughly 0.5 kilometres, with a population just under 40,000. It does not carry the same infrastructure and social spending burdens as much larger countries.

That compact scale makes the model easier to sustain.

Monaco is tiny, wealthy, and built for this lifestyle

About a third of Monaco’s residents are millionaires. That tells you a lot about the ecosystem. This is a place designed around wealth, mobility, security, and premium services. For most people, it is an extraordinary outlier. For an F1 driver, it aligns neatly with the demands of the job.

Good weather helps too. So does the Mediterranean setting. So does the network effect of having teammates, rivals, and friends all living within minutes of one another.

Once a driver reaches a certain level, Monaco stops being just a glamorous fantasy and starts looking like the obvious choice.

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