‘Beckham Law’ in Italy set to end and could have huge ramifications for Serie A transfers
The 'Beckham Law' has been scrapped in Italy, much to the disappointment of Italian football's highest earners.
The law, which is officially known as Crescita Decree, allows high-income earners from foreign countries to have a 50 per cent discount on their tax bill.
The law is thought to be an appealing lure to attract foreign footballers to the Italian leagues.
However the rule has been scrapped after discussions in the Italian Council of Ministers.
The tax decree was named the 'Beckham Law' after being introduced in Spain when high-income foreign earners paid just 24 per cent income tax for their first six years in the country.
Beckham, who joined Real Madrid in 2003, became one of the notable early recipients of the reprieve.
The change will come as a big shock to clubs in Serie A who have been critical of the proposal to scrap the agreement in recent months.
In November, AC Milan's CEO Giorgio Furlani said: «Stopping the benefits of the Crescita Decree will be the destruction of Italian football.»
Lazio president, Claudio Lotito, added: «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!"
With clubs in Italy already struggling to compete financially with others from England, Germany and France, it remains to be seen how big a role the rule change will have on Serie A's fortunes.
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