Ferrari has lost the major financial pull factor of the Decreto Crescita law, also known as the ‘Beckham Rule’, as its abolishment means foreign recruits can no longer be enticed by tax relief.
The Ferrari F1 team is in a further period of transition as it looks to end its title drought, which has been ongoing since 2008, with several key figures having departed the team in recent times – such as race director Laurent Mekies, chief engineer David Sanchez and Ferrari Driver Academy boss Marco Matassa.
But, should Ferrari wish to look outside of Italy to bolster their ranks in search of fresh title glory, then they will no longer have the financial incentive of the Decreto Crescita law at their disposal.
Foreign Ferrari recruits no longer receiving tax benefits
Nicknamed after footballing icon David Beckham, who took advantage of Spain’s tax-reducing laws to attract elite and/or wealthy foreign talent, Italy introduced their own version of the ruling in 2019, allowing sporting outfits like Ferrari to target foreign talent with the allure of zero tax on the first 70-90 per cent of their income if they came to Italy to work for them.
However, the Decreto Crescita law is no longer active, with the start of 2024 having marked its end.
Ferrari team principal Fred Vasseur had already spoken about the added difficulties which Ferrari face compared to the UK-based teams when it comes to hiring staff, since bringing people in from outside of Italy means a complete change of lifestyle.
That task will likely become even more difficult now that the financial benefits have been taken off the table.
“You can move from Red Bull to Mercedes, keep the same hours, keep children in the same school and from the Friday to the Monday you can change and everything is perfect,” Vasseur previously told Sky Sports F1.
“If you want to come to Italy, it’s a different approach. You have to change the family environment and so on.
“But as soon as you are in Italy I think it’s more difficult to leave – the food is much better and the quality of life in Italy is mega.
“Sometimes it can play into discussions because they have to move the family, it depends on the situation of the children, it’s not always easy but as soon as we are able to attract someone they are staying.
“I had the same situation at Sauber, it was difficult to ask them to come but as soon as they were in Switzerland they stayed in Switzerland.”