De Volkskrant: ‘Tax avoidance Verstappen costs the Netherlands 200 million euros’

The day after the Monaco Grand Prix comes The Volkskrant with an article about top athletes who live in this tax haven. The piece zooms in on Max Verstappen, who with his income of about 64 million euros per year is the highest-earning Dutch athlete. But the Dutch State does not notice this in its treasury.

Verstappen moved to Monaco at the age of 18, shortly after his debut in Formula 1. In his own words, not because of the favorable tax rate, but because he can be more himself in the Principality. “To be honest, I think I can be more myself in Monaco than in Amsterdam,” Verstappen once said. He does not like to be recognized and likes to keep a low profile where possible. Yet many cannot escape the impression that Verstappen has certainly moved to Monaco because of the tax system. In the dwarf state you pay 0 percent tax on your income, while that rate in the Netherlands is set at 49.5 percent.

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Verstappen pays exactly 0 percent tax in Monaco

With an annual income of around 64 million euros, you can imagine that Verstappen would not like to see almost half of this gigantic amount evaporate in taxes. In the Netherlands, the top income tax rate is 49.5 percent – In Belgium, where Verstappen lived until he was 18, it is 50 percent. But in Monaco, since 1963, only French nationals pay income tax. The Limburger does not have to do that and has not done so for almost eight years The Volkskrant. And that hurts the Dutch treasury. After all, Verstappen does drive with the Dutch flag and carries the Dutch nationality, but does not pay any tax here.

The Dutch treasury is missing more than 200 million euros

“If Verstappen remains based in Monaco until 2028, his tax benefit will increase to at least 200 million euros over 13 years,” the newspaper calculated. ‘Due to this tax avoidance, not to be confused with illegal tax evasion, the home countries of all Monaco-based athletes are losing out on hundreds of millions of euros in revenue. Is this morally acceptable behavior? That question apparently does not play a role among the top sports millionaires. The move is legal and a good example is followed. If he does it, the thought seems, why not me?’