Recently, football superstars playing in Spain have been in a whole bunch of tax trouble which authorities are calling various forms of tax fraud. One would think the likes of Ronaldo, Messi, and Neymar would have the money to pay the best financial advisors in the world to avoid issues like this.
This all started via David Beckham who (when playing for Real Madrid) signed a deal enabling him to enjoy a tax-exemption scheme aimed at attracting foreign talent to Spain across all sectors. That scheme became known as the Beckham Law, when he became one of the first players to sign up to a six-year-long tax ceiling of 24%; roughly half what Spaniards paid on six-figure-plus incomes. Well the Beckham Law is now gone and the trouble starts for all these stars.
My question is will Spain still be an attractive country for superstar talent? Don’t think so if taxes are high and authorities are down their necks for extra money….long story short, you make the big bucks, expect to be taxed and made to pay-up or Guido will be on you like a dog on a bone. Guess I’ve been watching too much Sopranos…
This story is from the Wednesday, September 6, 2017 newsletter.
Like what you just read?
Sign-up here to receive the newsletter in your inbox each Wednesday.