How Mick Jagger and Keith Richards’ careful planning means the Rolling Stones pay just 1 per cent tax
The Rolling Stones duo, Sir Mick Jagger and Keith Richards, have long been synonymous not just with music but also with strategic financial planning.
Shrewd wealth management, such as leveraging legal loopholes and tax-efficient structures, allows the iconic rock stars pay minuscule tax bills relative to their earnings, all within the confines of the law.
Over a span of nine years, from 2013 to 2021, The Rolling Stones’ holding company, Promogroup BV, amassed $180.9m (£143.2m) in revenue.
However, their tax payments amounted to just $1.53m (£1.21m), according to the Dutch Chamber of Commerce records, equivalent to less than one per cent of their total earnings.
In the most recent filing from March, the company said its receivables amounted to $25m (£19.8m) in 2021, with the tax paid during this time period only $213,000.
The band’s financial strategy, orchestrated by their late adviser Prince Rupert Loewenstein, involves using Dutch corporations and trusts established in the 1980s. Promogroup BV, founded by Prince Rupert, is the linchpin in this tax minimisation scheme.
By channelling their earnings through this holding company, the Stones exploit favourable Dutch tax laws that exempt certain intellectual property earnings, such as royalties, from taxation.
The Netherlands’ tax regulations offer a haven for international artists and corporations seeking to mitigate tax liabilities. Earnings from intellectual property, a significant revenue stream for musicians like The Rolling Stones, remain untaxed under Dutch law.
Additionally, Dutch foundations provide avenues for tax-efficient estate planning, allowing assets to be transferred to heirs without incurring tax burdens. Jagger has eight children while Keith Richards has four.
While specifics of Jagger and Richards’s individual tax obligations are unknown, the band’s financial advisor and lawyer oversee their estimated fortunes of £800m and £295m, respectively.
Last year, Jagger told the Wall Street Journal he has no intention of selling the band’s back catalogue, despite its potential for substantial profit, because his children did not need an extra $500m.
One representative for the band did not immediately respond to City PM‘s request for comment.