Now officially, Italy has eliminated the Crescita Decree, better known in Europe as the “Beckham Law” which was approved in 2019 and whose repeal set a harsh precedent which benefited both foreign players who went to play in the country. Italian as well as the clubs that took over these footballers.
Today, from 90min, we will tell you everything you need to know about this legislature known as “the Beckham Law”
What is the Beckahm Law?
First of all, we must provide a context of what the Beckham Law is. This term was coined in Spain in 2005. At that time it had been formulated for all foreign workers of any type, but it gained impact with the arrival of David Beckham to Real Madrid in 2003 from Manchester United.
What this law generates is a tax benefit for foreign footballers who arrive in the country as well as for the institutions that welcome the arrival of these players.
What kind of benefits are we talking about?
Players could enjoy a series of benefits if they met three requirements: having resided in another country in the two tax periods prior to moving to Italy, remaining in Italy for two years after the move – which required footballers to sign a minimum for two years in Italian clubs – and carry out work mainly in Italy
If these requirements were met, the players could enjoy a great reduction in taxes for the player, who only paid the personal income tax corresponding to 50% of his salary, a great incentive for the arrival of players to Italy.
Why is it news now in Italy?
As of January 1, 2024, the Government of Italy has repealed the Crescita Decree, which is the equivalent of the Beckham Law. The new decree in Italy maintains the tax benefit for workers who meet the requirements mentioned above, excluding athletes: “Employed or self-employed workers who transfer their tax residence to Italy will be granted, starting in 2024, a new subsidized regime for a maximum of 5 years,” the Government explained last October.
What consequences could this have for Italian football?
The suppression of this Decree can bring two aspects to Italian football, one positive and one not so positive. Firstly, this will encourage and exploit local talent. The clubs, not being able to make use of this Decree, will have to bet more on young Italian talents, making them develop as they will not be able to sign players to benefit from this tax benefit.
On the other hand, clubs will find it more difficult to get stars for their clubs since there is no tax benefit incentive. This would make Serie A lose appeal for viewers on television. This is why many predict that this is the beginning of the end of Italian football.
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