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Five of the top 10 ATP rankings, including Djokovic, live in Monaco… why?

Novak Djokovic, the world number one in men’s tennis, is the world’s most famous sports athlete produced by Serbia. But his home is in the small city-state of Monaco.

Five out of 10 players in the top 10 of the ATP (Men’s Professional Tennis) rankings live in Monaco. Why do they live together in a small country with an area of ​​1.95㎢?

According to a recent report by the American business magazine Forbes, Monaco, located on the Mediterranean Sea, has sunny weather for more than 300 days a year, is close to European capitals and is easily accessible, and is only a drive away from top-class training facilities, including the famous Mouratoglou Tennis Academy. You can move and use it within time.

Star athletes and the wealthy have other advantages, too. The country is a tax haven with no personal income tax, capital gains tax, or investment income tax. Djokovic, who is estimated to have earned about $38.4 million (50.9 billion won) over the past year, can save millions of dollars in taxes (as of before winning the US Open). In addition to Djokovic, Russia’s Daniil Medvedev (3rd) and Denmark’s

Holger Rune (4th), Greece’s Stefanos Tsitsipas (5th), and Italy’s Yannick바카라 Sinner (7th) are based in Monaco.

“Denmark is a great country, but we don’t have many tennis players,” Rune told Forbes. The facilities and players being able to practice here (Monaco) are really important to me. “Because you can’t have this kind of experience in Denmark,” he said.

Monaco is home to many Formula One (F1) players such as Max Verstappen (Netherlands). They didn’t just choose this place to practice for the Monaco Grand Prix either.

“It’s an open secret,” said Dr. Andreas Bosse, an international legal consultant in Monaco. “People come to Monaco for the good weather, but everyone knows there are significant tax advantages in Monaco.”

Obtaining residency is not particularly difficult. All you have to do is rent or buy a house, open a bank account with at least 500,000 euros (about 700 million won), and sign a contract for utility bills such as electricity. However, applicants must have no criminal record and must pass an interview with security authorities.

However, there is also a view that the tax savings are not that great. Athletes traveling around the world have to withhold taxes or pay taxes to the countries where they compete. For example, Djokovic does not pay taxes in Monaco on the US Open men’s singles championship prize money of $3 million (3.97 billion won). But the Internal Revenue Service is not a lenient organization.

Similarly, sponsorship and social media income could also be taxed. Depending on the country, domestic media appearances, digital postings, and online sales are taxable, and it may be argued that much of a player’s income earned in this way is covered by their own laws.

Jerry August, an attorney at Fox Rothschild law firm in the U.S., explained, “The basic principle of taxation, both in the U.S. and internationally, is that if labor is performed domestically, that country always has the right to tax that labor.”

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