The Ligue 1 club will continue to be based in the tax haven after reaching a deal with the French League's governing body
As a result of recent increases to the upper band of income tax, which now has a top rate of 75 per cent, payable by employers, there was pressure from clubs based in mainland France upon the Monegasque side to move their financial base to fall under the same legislation.
However, Monaco released a statement on Friday afternoon explaining they have reached an agreement with the league to allow them to continue trading in the tax haven.
“Monaco announce today that an agreement has been reached with the LFP that guarantees the Monegasque club participation in the championships of France while maintaining the club’s workforce and registered office in the Principality,” the statement reads.
“By paying a single lump-sum voluntary contribution of €50 million [£41.4m], payable in instalments, Monaco will demonstrate its commitment to French football and will thus continue the club’s project to benefit all stakeholders.”
Owner Dmitry Rybolovlev, who has invested millions of euros into the side he bought two years ago, allowing them to sign stars such as Radamel Falcao and James Rodriguez, was delighted with the outcome and highlighted the mutual benefits it will bring.
“Since the beginning, we wanted to find an intelligent outcome that suits everyone,” he told the club’s official website.
“The project of Monaco is needed to draw interest to French football and it is good that this has been understood.”