America’s Cup Naples 2027: Tax Incentives for Companies and Professionals
Italy has introduced a tax incentive package for the 38th America’s Cup in Naples, scheduled for July 2027. Under Decree-Law no. 38 of 2026, participating teams and foreign professionals can access exemptions from corporate taxes and significant reductions in personal income tax to attract international investment and technology.
The legislation, converted into Law no. 88 on May 22, 2026, aims to facilitate the settlement of foreign teams and highly specialized personnel. According to Luca Valdameri and Martina Calissi of Studio Pirola Pennuto Zei & Associati, these measures target the economic, tourist, and industrial fallout of the event.
The road to the 2027 finals includes preliminary regattas held in Cagliari from May 21 to May 24, 2026. The Italian government designed the tax framework to cover activities starting from January 1, 2026, through December 31, 2027.
How do the corporate tax exemptions work?
Companies established in Italy during 2026 by the organizing body or participating teams are exempt from IRES and IRAP. This exemption applies to activities exclusively linked to the America’s Cup between January 1, 2026, and December 31, 2027.
The benefit also extends to permanent establishments created in Italy in 2026 by foreign teams. According to Valdameri and Calissi, the goal is to prevent tax burdens from hindering the creation of technical offices, logistics centers, or operational bases in Italy.
What tax breaks apply to athletes and technicians?
Foreign professionals who are not tax residents in Italy are fully exempt from Italian taxation on employment and self-employment income for the 2026 and 2027 tax periods. This rule simplifies the application of Article 15 (2) of the OECD Model Convention.
Professionals who transfer their tax residence to Italy face different rules. For those moving their residency, only 35% of their competition-related compensation is taxable, meaning 65% remains tax-free.
This specific benefit is not cumulative with other existing Italian regimes, such as those for “neo-residents,” impatriate workers, or researchers. Professionals must choose the most advantageous option.
Why is Italy offering these incentives?
Italy is following a precedent set by other host nations. Spain implemented similar tax incentives for the 37th edition in Barcelona in 2024. Italy also previously used similar regimes for the 2015 Milan Expo.
The legislation targets a wide range of specialists, including composite materials experts, data analysts, naval engineers, and meteorologists. By reducing the tax load, Italy intends to use the event as a lever for industrial development in the maritime sector.
What happens with social security contributions?
Current legislation does not specifically regulate social security contributions for these participants. Contributions generally follow the principle of territoriality.
Valdameri and Calissi suggest that foreign workers should obtain social security coverage certificates to avoid double payment. Examples include the A1 certificate for European Union citizens and the IT/USA 4 form for United States citizens. Clarification from the legislature on this point is still expected.
Frequently Asked Questions
When and where will the 38th America’s Cup take place?
The event will be held in Naples in July 2027, with preliminary regattas having taken place in Cagliari in May 2026.
Which corporate taxes are exempt under D.L. 38/2026?
Eligible companies and permanent establishments are exempt from IRES and IRAP for activities directly related to the competition between 2026 and 2027.
Can a professional use both the America’s Cup tax break and the impatriate regime?
No. The law expressly states that this regime is not cumulative with the regimes for neo-residents, impatriate workers, or teachers and researchers.
Do you think tax incentives are the most effective way to attract international sporting events?