The Italian tax authorities, notably the “Guardia di Finanza”, have launched an offensive aimed at strengthening the application of tax controls on Formula 1 drivers who have raced in Italy.
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The stakes are clear: to verify whether the income generated during the events held on Italian territory has been properly declared and taxed in accordance with local legislation.
Under Italian law, foreign athletes — including F1 drivers — are required to pay taxes on income earned in the country, even if they are not tax residents there.
Global investigation
However, the application of this rule has long been considered irregular, which has led the authorities to intensify controls, particularly targeting F1 due to its media exposure and the financial amounts at stake.
In this context, a large-scale investigation has been opened: it concerns all current and recent drivers, with a request for the transmission of tax returns for the year 2025. The authorities are also seeking to go back in time to identify any unpaid taxes over several seasons, with a desire for retroactive regularization.
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To refine their analyses, investigators wish to examine in detail the drivers’ contracts — particularly sponsorship agreements — in order to precisely assess the share of income generated in Italy. The threshold is critical: if undeclared amounts exceed 50,000 euros, this can constitute a criminal offense, exposing drivers to significant fines in addition to the repayment of sums due.
Transparency and fairness
This initiative is part of investigations carried out in regions that have hosted Grand Prix races in recent years, particularly around Lombardy (Monza), Emilia-Romagna (Imola) and Tuscany (Mugello). It follows a request from the Italian Court of Auditors aimed at strengthening transparency and tax compliance in these areas.
Finally, it is important to note that this type of system is not unique to Italy. Similar systems exist in several countries hosting international competitions — such as Australia, the United Kingdom or the United States — where non-resident athletes are also taxed on locally generated income.
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