Sinner and taxes. Sinner and tax residence in the principality of Monaco. A hackneyed theme that cyclically animates public debate, with controversies so overused that they become boring. The Italian champion is just one of the many sportsmen (and others) who have chosen Monte Carlo as their residence. A place like this attracts, and not today, many Italian public figures, attracted by a mix of favorable taxation and exclusive lifestyle. Together with him, other Italian tennis players such as Matteo Berrettini and Lorenzo Musetti are also fiscally domiciled there. A perfectly legal choice shared by Flavio Briatore, Stefano Gabbana, Ezio Greggio and Andrea Bocelli, just to name a few. And which does not only concern the wallet, but also the logic of life, image, logistics, comfort and privacy. The reality is a little more complex than it appears on the surface.
Let’s not hide behind a finger: the tax advantages are evident. By transferring their tax residence abroad, particularly to Monte Carlo, entrepreneurs or high-level tennis players like Jannik Sinner save enormous sums, often exceeding 50-60% of their overall income compared to what they would pay in Italy. Someone like Sinner earns a lot, but he definitely pays taxes, in Monte Carlo and also in Italy on the income produced in the Italian territory, such as the prizes of the ATP Finals in Turin (later we will see better how and why). But here the point is different, first of all: what and how many are the concrete savings of those who choose a residence in the Principality? Do those who go to live there do so just for the tax advantages? Let’s try to clarify.
Sinner doesn’t want to pay taxes in Italy: here’s how he did it (and how much he earned in 2025)
Taxes in the Principality
To obtain tax residency in Monaco, precise requirements are necessary: having a home owned or rented in the Principality, having sufficient economic means (minimum bank balances between 500 thousand and one million euros are often required), residing permanently in the area and demonstrating that the center of one’s life interests is located there, in a real and lasting way. In addition, you need a residence permit issued by the Monegasque authorities (la carte de séjour).
That said, the Principality of Monaco has a unique tax system at European level. There are no taxes on the personal income of natural persons (“personal income tax”, the Irpef) for non-French residents (the latter, although residing in Monaco, are subject to French taxation, by virtue of a bilateral agreement of 1963). There is no wealth tax and there is a minimum taxation on inheritances and donations between spouses and direct family members (close to 0%, while in Italy it ranges from 4 to 8%).
Prizes and sponsors
Question of cash prizes. Tennis players pay taxes at source in the country where the tournament takes place. However, on prizes won in tournaments that do not apply withholding taxes, or on accumulated earnings, taxation in Monte Carlo is zero, unlike the 43-45% (plus additional taxes) that would be paid in Italy on high incomes. Income generated in third countries (for example prizes won in foreign tournaments or compensation for advertising broadcast in Italy) may be subject to taxation in the country of origin, based on agreements against double taxation.
And sponsorships? The most substantial part of a top player’s earnings (often 60-70% of the total) derives precisely from this. Residing in Monte Carlo, Sinner does not pay Italian taxes on these contracts, which are instead taxed according to Monegasque rules, offering a drastic net saving. But to this we should also add the taxes on the income produced by Sinner in Italy in the days in which he was on national soil (sponsorships, various hosted), and also the taxes paid for example on the real estate investments made by him in Milan (around 7 million euros for two apartments in the city center, according to this reconstructed here).
And then there is the millionaire tax revenue that ends up in the state coffers produced on the occasion of major international sporting events, such as the ATP Finals in Turin, with benefits for local businesses, sponsors and tickets sold. Without Sinner it would not have been the same, in terms of brand attractiveness and redistributed wealth.
Savings ok, but…
Residency in Monaco for tax advantages alone is a somewhat outdated, stale and simplistic myth. The advantages are obvious, of course, but the choice to move your residence there is not without obstacles and constraints. For Italian citizens, relocating to Monaco requires rigorous planning to avoid the Revenue Agency considering the relocation fictitious, maintaining tax residence in Italy if the “center of interests” has not actually been relocated. In concrete terms, it means that the Italian tax authorities can contest the validity of the foreign residence if elements emerge that indicate the presence of the taxpayer in Italy for more than 183 days, or if the center of economic and family interests is still on the national territory.
Obtaining residency in the Principality of Monaco was seen by many, until a few years ago, as a way to escape the tax controls of one’s country of origin. Today the scenario has changed radically, because the controls of the Italian and international authorities are much more accurate. Montecarlo has joined various international tax cooperation initiatives, including the automatic exchange of information with the European Union and with the OECD, the Organization for Economic Cooperation and Development.
Banking data, investments and income flows can be tracked and shared between tax authorities in member countries. Furthermore, in Italy, tax monitoring is active on so-called “fictitious foreign residents” and on anomalies between living standards and declared incomes. This makes it increasingly difficult to evade taxes by pretending to live abroad, with serious consequences in terms of taxes owed and penalties.
A life choice
Monte Carlo, then, is not only a fiscal paradise. It is also attractive to many professional athletes and successful entrepreneurs because it offers high-profile context into so many other aspects of daily life. There are many excellent sports facilities for training, guaranteed privacy in an international and safe environment for athletes and their families. The quality of life is high, it is close to Italy and gives the possibility of easily moving around Europe.
Rue du Campanin in Fontvieille, a luxury neighborhood in the Principality of Monaco, very popular among Formula 1 drivers, tennis players and Olympic champions.
We are talking about one of the most expensive places in the world, and not everyone can afford it. Real estate is very expensive, but there are also high management costs, staff, insurance, tax consultancy, entertainment expenses. Daily life, from restaurants to luxury services, is geared towards high-income users. It goes without saying, and here we reiterate the obvious, that living in Monte Carlo is only convenient for those who already have very high incomes, but must also respect international tax rules.
We said it at the beginning, it’s worth going back to at the end. Sinner also pays taxes in Italy. And there are many. The South Tyrolean is among the largest Italian taxpayers, with his almost one and a half million euros paid to the Italian tax authorities in 2025, out of the approximately five of the prize money won at home that year (where the rate is 30%). Then there is everything else: the related activities, the sponsors, the commercials broadcast in our country, the investments made here. Wealth generated here, “retained” here. Jannik is certainly a Monegasque resident, but he is a taxpayer of the world, including Italy.