Spain divided on proposed tax rises for international footballers

Spain divided on proposed tax rises for international footballers
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By h.b. - Nov 4, 2009 - 6:05 PM

Photo EFE

Players who earn more than 600,000 Euro a year currently pay a 24 percent top rate of tax

The announcement from the Spanish government, that it is to end tax breaks on foreign footballers who earn more than 600,000 € a year, has divided the sport in Spain.

The Government wants temporary foreign workers here who earn more than 600,000 € a year to pay 43% top band income tax, and not the 24% that they currently pay.
The change would only apply to those who sign a new contract after Jan 1 2010; players whose contract predates that will continue to pay the lower rate.

The measure could attract top international players to the country before the end of the year, but the Spanish Professional Football League has said that it would consider taking strike action if the measure is finally approved in Congress.

The current lower rate, known popularly as the ‘Ley Beckham’, was established in Spain at the end of 2006 with the intention of attracting top scientific brains to Spanish companies. However many football clubs took advantage of it to attract top international players to the Liga Española.

In comparison in the UK such players are currently taxed at 40% although an increase to 50% has already been announced. However the player pays no tax on the days he is playing outside the country.
In Germany the rate is 43%, in Italy 45%, and in Holland players have 30% of their wage tax free for the first ten years.

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