FIA threatens to leave France over high taxes

Formula 1's governing body, the FIA, has been based in Paris, France, for 120 years. In a statement, the FIA explains that staying in Paris has many advantages, but they are almost forced to leave.

For a very long time, the headquarters of the Fédération Internationale de l'Automobile (FIA) has been located in France's capital, Paris. There are also offices in Geneva in Switzerland. To keep growing in France, FIA needs a specific legal status, but it does not get that at the moment.

FIA sees few advantages in remaining in France anymore

In a statement, Xavier Malenfer, director of institutional and international relations at the FIA, explained the current situation. "Without clarification, by recognizing a specific status for international sports federations, there is little hope of seeing FIA activities develop further despite all the undeniable advantages of Paris.
The French executive had tried, at the end of 2023, to include in the 2024 budget a law with tax provisions to attract to France, international sports federations recognized by the IOC, starting with football. But last December, the Constitutional Council censored the advantageous tax regime, citing equality before tax. This discouraged the establishment of certain federations.

"The major brake identified for this French attractiveness: the absence of a specific legal status for international federations. Under French law, they indeed have the status of associations, and cannot be considered as either international organizations or companies. This has concrete consequences on their activities, taxation, and, ultimately, on their interest in being in France, explain the organizations. They demand more clarity and visibility from France regarding the legal, social, and tax regime that would apply to them," Malenfer continued. FIFA, football's altitude body, is also bothered by this.