Unknown facts about Monaco: Tax Haven or Tennis Paradise?

Everyone loves Monaco. Entrepreneurs settle here, attracted by its taxation system. Formula 1 drivers are crazy about the Monaco GP track. Celebrities come here to enjoy the unique atmosphere of the local parties. Apparently, tennis professionals will be next on the list. They literally feel at home on the courts of the Monte Carlo Country Club.

And we don’t have to go far to find some examples. The world’s number one in men’s singles tennis Novak Djokovic became a resident of Monaco in 2000. The Serbian player is the ambassador for the Princess Charlene charity foundation and the owner of vegan restaurant Eqvita, located in the city centre.

Another professional tennis player with Monegasque residency is Petra Kvitova. In fact, her relocation to the Principality was not easy. After she won her second Grand Slam title at Wimbledon, her return home was not as warm as expected. Social Democrat MP Stanislav Huml accused the tennis player of avoiding income taxes and suggested she should be deprived of her Czech citizenship.
“I think that we should all think long and hard about the fact that if someone leaves the Czech Republic and becomes a member of another state, they should lose their Czech citizenship. I am not sure if it is worth moving to Monaco just to pay less tax when the Czech Republic actually helped her to achieve some of her success”, the deputy said in his interview for Czech radio.

But Stanislav was wrong when talking about “the few percent less in taxes”. As we all know, there is no income tax in the Principality. As for the Czech Republic, the tax rate goes up to 22% for wealthy citizens, which would be almost a quarter of Kvitkova’s income. No need to think hard.

Fortunately, Czech president Milos Zeman and the Minister of Finance supported Petra, saying there was nothing wrong with her relocation to Monaco. Besides, as she plays abroad, it is fair that she pay taxes in another state.

In fact, Petra Kvitova is not the first Czech tennis player to move to Monaco. Radek Stepanek, Tomas Berdych, and Lucie Safarova already have their residency there. Moreover, the Principality is now home to many of tennis players, such as Caroline Wozniacki, Milos Raonic, Bernard Tomic, Marat Safin and his sister Dinara.

Here are even more perks of living in Monaco: there’s a free Monte Carlo Country Club membership for tennis players, plus medical care, massage at any time and 40 courts to play on.