F1 world champion Max Verstappen has lived in Monaco since 2015 and for good reason. In addition to the beautiful weather and luxurious facilities, it is a true tax paradise. Yet the Dutch-Belgian driver has to pay taxes to our cold little country from time to time, even though he does not live there. How does that work?
The rare occasion that Max Verstappen has to pay taxes to the Netherlands
The three-time world champion earns approximately €52 million per season. That puts the 26-year-old on the list of highest-earning athletes of all time. If Verstappen earned that while living in the Netherlands, he would have to pay almost 50% tax on it. In Monaco, on the other hand, there is no income tax.
Verstappen thus deprives the Dutch State of hundreds of millions of euros in taxes. Until the 2028 season, this will amount to more than €200 million. Since salary increases are looming and Verstappen will most likely sign a new contract, this will increase considerably.
Apart from the many hundreds of millions in unpaid taxes, ‘Super Max’ still pays taxes to the Netherlands from time to time. One of the races in the F1 championship takes place in the Netherlands, at the Zandvoort circuit. Since Verstappen is officially working in his home country, that is the only time that Verstappen pays tax to the Netherlands.
No taxes next to Zandvoort make sense, says manager
Verstappen’s manager thinks it is justified that the driver does not pay taxes to the Netherlands in addition to Zandvoort. In an interview at Jinek’s table he said:
“Furthermore, we have no activities in the Netherlands. Why should we pay tax on foreign income there? It would be strange if you paid double, these are the international rules.”
Verstappen himself also said that he strictly adheres to the rules:
“One can have a moral opinion about everything, ultimately it is just the legal and tax (international) legislation and we adhere to that in all shapes and sizes.”
Tax haven or not, Verstappen and his manager are legally right. Verstappen does not live or work in the Netherlands in his daily life, so he does not have to pay tax on this to the Netherlands.