SERIE A has lost the “Beckham Law” after tense discussions took place with the Italian government.
The law, officially known as the Crescita Decree, let’s high income earners from foreign countries have a 50 per cent discount on their tax bill.
GettyThe Crescita Decree was coined the ‘Beckham Law’ after David Beckham made use of a similar rule in Spain[/caption]
GettyAC Milan CEO Giorgio Furlani previously claimed ditching the law would be ‘the destruction of Italian football’[/caption]
It is thought to attract foreign footballers to the Italian leagues and helps to increase competitiveness across Italy’s top flight.
The ruling is remarkably similar to the “Beckham Law” in Spain which allows high income foreign earners to pay just 24% income tax for their first six years in the country.
The tax decree was coined the “”Beckham Law” after David Beckham became one of the most notable foreigners to take advantage of it after he moved to Real Madrid in 2003.
But the Italian equivalent will no longer stand after discussions in the Italian Council of Ministers have led to the rule being binned.
The change will come as a big shock to a number of Serie A clubs who rely on the law to attract the best talents from around the world.
Back in November the CEO of AC Milan, Giorgio Furlani, made his stance on the proposed changes clear.
He said: “Stopping the benefits of the Crescita Decree will be the destruction of Italian football.”
While other bigwigs in the Italian game have reacted with similar outrage since the announcement to end the law was made.
FREE BETS – BEST BETTING OFFERS & NEW CUSTOMER BONUSES
Lazio president, Claudio Lotito, told Notizie that it doesn’t make sense to prevent new tax payers altogether instead of them paying a cheaper rate.
He said: “They [the government] will realise their mistake. The state will not receive money either.
“If you attract a foreigner who pays taxes in Italy, it will be better than one who does not come and pays nothing, right? Our league will lose competitiveness!”
He went on to explain that the rule change could see some of Europe’s biggest teams collapse.
He said: “Some clubs will be destroyed, and in the middle there are Milan, Juventus and Roma.”
While those from the footballing world are left seething and concerned about a lack of competitiveness in the league, Italian politicians were more concerned about the bigger picture.
One such politician slammed the idea of keeping the law in place as “immoral” when discussions were ongoing in the Council of Ministers.
GettyLazio President Claudio Lotito has also spoken out against the law change[/caption]