24 Jun 2009Tax break for foreign footballers in Spain

Football Finance News | Football Leagues/ Association and Governance

High-earning footballers in Spain will continue to receive a tax break, following the announcement of a government vote in the country.

A law was introduced in 2005 which allowed foreign football stars in Spain to only have to pay 24 per cent tax rather than 43 per cent.

Suggestions were put forward to amend this law but the Spanish government has decided to scrap these plans after congress voted against a motion to make the change, Bloomberg reports.

Gaspar Llamazares, a deputy for United Left, the ruling Socialist Party, told the news provider: "There's a very privileged treatment of soccer players that has to be modified.

"We can't be a tax haven for anybody."

The law had previously been introduced as it was hoped that it would lure more stars from around the world to play in La Liga.

Kaka is one of the latest stars soon to begin plying his trade in Spain after signing a mega-money deal with Real Madrid, with Manchester United's Cristiano Ronaldo seemingly set to follow shortly.

Meanwhile, there have also recently been complaints from foreign stars on how they are taxed when playing for clubs in the UK.

Arsenal's Russian forward Andrei Arshavin recently demanded a pay rise after failing to realise the extent to which his tax bill would impact on his earning potential.

Written by Craig Kemp

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