Too many taxes, the FIA ​​could abandon Paris

Federations in revolt

There Paris headquarters of the FIA in Place de la Concorde at number 8 is one of the most famous and iconic that exists in all of world sport. However, the splendid building that stands next to the famous Hôtel de Crillon could soon no longer be the international automobile federation manufacturer. The reason, as often happens, is purely economical. The governing body of world motorsport has in fact explicitly stated that it could move its activities out of France, expressing dissatisfaction with the French legal and tax system, which would not fit the operational needs of the federation. Also supporting this critical position is FIFA, the governing body of world football, which was founded in Paris and currently has its headquarters in Zurich, but which opened offices in the French capital in June 2021.

The temptation to 'run away'

The two giants of world sport have released a joint press release in which they highlight how the absence of a specific status And the abandonment of tax advantages that were reserved for them could push them to find hospitality elsewhere. “Although France is the cradle of motorsport, international competition, especially in terms of labor costs, and the globalization of sport are weakening this position – explained Xavier Malenfer, director of institutional and international relations of the FIA ​​– without a clarification of this position, through the recognition of a specific status for international sports federationsthere is little hope of seeing the FIA's activities develop further, despite all the unquestionable resources of Paris.”.

A tax problem

The French executive had tried to have one approved in the budget for the year 2024 law containing favorable tax provisions to international sports bodies, with the hope of attracting new ones. In December 2023 however, one contrary decision of the Constitutional Council, which considered these benefits illegitimate, completely reversed the scenario. “The main obstacle to France's attractiveness is the absence of its own legal status for international federations – I add FIA and FIFA – according to French law, they have the status of associations and cannot be considered either as international organizations or as companies. This has concrete consequences on their activities, on their taxation and, ultimately, on their interest in being present in France”.