Why do Formula 1 drivers live in Monaco?

There are at least nine drivers living in Monaco. These are; Lewis Hamilton, Max Verstappen, Charles Leclerc, Lando Norris, George Russell, Valtteri Bottas, Nico Hulkenberg, Daniel Ricciardo, and Alex Albon.

Why do so many F1 drivers decide to live in Monaco?

There are five main reasons Formula 1 drivers have decided to call Monaco their home: low taxes, history with F1, privacy, weather, and location. However, that isn't the primary reason for Charles Leclerc. 

The current Ferrari driver was born and raised in Monte Carlo. During the F1 lap, he passes many different locations from his childhood, including his school. His family is also located in the principality, and he races under the flag of Monaco. 

Taxes

Taxes in Monaco are extremely low for the rich, which is obviously helpful for most Formula 1 drivers due to their high salaries. The country has no income tax, wealth tax, local tax, property tax, or capital gains tax. This makes Monaco a tax haven. To even become a resident in Monaco, you must show proof of accommodation and sufficient financial resources.

Monaco makes most of its money from tourism (the Monaco Grand Prix weekend and surrounding events are very important to the economy) and its famous casino. The low taxes are often a reason why some fans heavily criticise some British drivers for their move to Monaco. 

History with Formula 1

If you ask someone to brainstorm about Formula 1, they often automatically link those thoughts to fast cars, innovation and sporting drama. Names like Schumacher, Senna and Hamilton come to mind. But places like Silverstone, Spa and Monaco are also named quickly. It's almost like Formula 1's capital. There is so much history shared between the two. 

Monaco is the dream place for any young driver wanting to get into Formula 1. It has hosted 69 official rounds in the Formula 1 World Championship since 1950 and is arguably the most famous racing track in the world. They want to be a part of history, and that will make Monte Carlo an attractive place for any driver to live.

Privacy

Monaco is known for its financial and professional secrecy laws. The banking systems have a high degree of data protection, and wealth management is available. 

Monaco is also home to thousands of millionaires. In fact, millionaires make up around 30% of the population. This means that when F1 drivers want to go to the shop to buy something to eat, they won't have to interact with hundreds of fans wanting to take a selfie or sign their autograph book. The government also requires written permission for photographers, significantly reducing the chance of paparazzi getting in the way and making them front-page news.

Location and weather

In recent years, the Formula 1 race weekends in Monaco have featured rain at some point. However, that is not common. It rarely rains in Monaco, and the sun is often shining. Even in winter, the temperature doesn't often drop below 10c. It's on the coast, and the Mediterranean Sea provides spectacular views. It also has a beautiful harbour for the F1 drivers to enjoy.

Monaco is also 15 miles away from Nice airport. The F1 drivers have to travel a lot to complete all the testing, sponsorship engagements, and, of course, the Grands Prix themselves, so it's handy having such a beautiful place near an international airport.