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Ferrari could move fiscal base away from Italy

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Ferrari could move fiscal base away from Italy
Ferrari would keep its manufacturing base in Maranello, near Milan. Ferrari photo: Shutterstock
12:37 CET+01:00
Luxury car manufacturer, Ferrari, is mulling shifting its fiscal base outside of Italy as it seeks to avoid high corporate taxes, Bloomberg reported.

As Ferrari prepares for a spin-off from its newly-merged parent group Fiat Chrysler Automobiles (FCA), the company is considering its fiscal options, although the iconic cars will still be made in Maranello, near Milan, people familiar with the situation told Bloomberg.

In a move that could deal a harder blow to Italy’s image than its revenue pot, one option is to follow the path of FCA, which recently moved its headquarters to London and is registered in The Netherlands.

Another option being considered is keeping Ferrari's Italian residency, Bloomberg reported.

Prime Minister Matteo Renzi is striving to push through a series of reforms to make Italy more competitive, but businesses are struggling under a corporate tax rate that is one of the highest in Europe.

The rate in Italy is 31.4 percent, compared to the UK’s 21 percent, which will drop to 20 percent next year.

"Ferrari is big, but not the biggest company in Italy, so it’s hard to say how much fiscal revenue Italy would lose," Nicola Nobile, an economist at the London-based Oxford Economics, told The Local.

"It will be more of an image issue, as Ferrari is probably the most famous brand in Italy."

A final decision is expected to be made in the coming months, Bloomberg said.

A spokesperson for the company could not be reached for comment when contacted by The Local.

John Elkann, the chairman of FCA, said in October that the spin-off, set to be completed early next year, would "preserve the cherished Italian heritage and unique position of the Ferrari business."

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