On January 1, Italy abolished the Decreto Crescita law, which allowed foreigners who came to live and work in the country to receive major tax breaks.
Named after footballer David Beckham, this law first appeared in Spain when the famous Briton moved from Manchester United to Real Madrid and allowed citizens of other countries to avoid paying taxes on most of their income if they had extraordinary talent .
This was actively used by football clubs in Spain and Italy when inviting foreign players. Ferrari also benefited by inviting specialists from other teams who did not really want to move with their families from their usual Northamptonshire to Maranello, but tax breaks played their part.
They have now been cancelled. In Italy they decided that the law did not bring any benefit to the country, that the law lost force and that Ferrari lost an important advantage.
The situation is exacerbated by cost containment, with staff leaving teams to work in other sectors. Teams may not always be able to offer the competitive salaries that engineers at companies outside Formula 1 can receive.
The teams are looking for a solution together with the FIA and Formula 1. Nobody wants to lose the best specialists who move to another sector that has nothing to do with motorsport. This was not the idea behind introducing a spending limit in an attempt to level the playing field between the teams.
Source: F1 News
I am Christopher Clyde, an experienced journalist and content writer with a passion for sports. I have been writing about Formula 1 news for the past five years and am currently employed as an author at athletistic.com, one of the top sports websites in the US.
