Lewis Hamilton – Winning the Race and the Tax System

British driver Lewis Hamilton won his second Formula 1 world title over the weekend, describing it as the “greatest day of my life”. The 29-year old has the prestigious honour of being able to call himself a double winner but also winning tax-free.

Unfortunately we’re all not like Lewis Hamilton and currently live in Monaco where the city levies no income tax on individuals. The absence of this personal income tax system has attracted a considerable number of wealthy “Tax refugee” residents from European countries. However there are some exceptions to the system:

·      Companies earning more than 25% of their turnover outside of the Principality and companies whose activities consist of earning revenues from patents and literary or artistic property rights, are subject to a tax of 33.33% on profits.

·      French nationals who are unable to prove that they resided in the Principality for 5 years before October 31, 1962.

Furthermore, Assets located in Monaco are subject to the following inheritance tax rates:

·      In direct line of descendance: 0%

·      Between brothers and sisters: 8%

·      Between uncles and nephews: 10%

·      Between relatives: 13%

·      Between non-relatives: 16%

So there you have it! It’s a shame we’re not all in Lewis Hamilton’s shoes, so if you need some tax advice feel free to call the office on 01482 861919.