So called Beckham tax axed in Spain

Spain's big clubs face a new problem after the Spanish goverments decision last year to stop the so called Beckham law came into effect this week.

The law, named after Beckham because he was the first to benefit from it, was a loophole that allowed foreign workers (including professional sportsman), to pay 24 per cent tax on there wages.

This has now been stopped, and the players will pay the full 54 per cent (56 per cent in Catalunya), that the Spanish players do.

Barcelona and Real's wage bills stand to increase by tens of millions, with effects starting to show as players like Eric Abidal already stalling on new contracts because of the tax rise.

Will be intresting to see the effects that this will have, with squads being trimmed of foreign players not playing (Kaka), but also transfer fee's from the Spanish clubs i would imagine being less. And with it becoming a less attractive proposition to live, more top players could becoming to the premiership, or could it be the start of an Italian renasinace.

Is the tax still not less than in England?

invincibleILeak (CL-6WF) wrote:Is the tax still not less than in England?

It's 50% here mate.

That is interesting, could lead to many players leaving the league. I think England has suffered a little since our own upper tax threshold was increased

Wow, judging by the lack of comments I don't think some people realise how monumental this could be, this could have a monumental effect, playing in England wouldn't suddenly become more attractive but it wouldn't be so out of the question

To jump from 24% to 50% was always going to be costly for.a British Club to make sure players would benefit financially from any move, now the bump in tax makes it more likely players from La Liga will will entertain a move to England

"Oh no, instead of earning 200k a week i'm going to earn 175k!!" Bunch of greedy ******.

I know what you're saying but if Lionel Messi is on £200,000 a week then before this law his tax would be what? £48,0000 a week, rising to 54% means he'd be paying now £108,000 a week

That's some jump

If it was only ever the case for foreign players in La Liga, it's strange that the league is full of Spanish players, there aren't a huge amount of the Spanish players playing abroad.

I'm not 100% sure about this Leak but I think when Spanish players are in negotations they deal on what they'll earn after tax, I can't remember if it was the David Silva deal or the David Villa deal when a host of clubs from the Premiership and Barca and Real where interested, the Spanish deals where always described as 'after tax'

I'm not to sure how good my math is here as I'm doing it in my head but if David Villa wanted £100,000 a week from Barca then Barca would need to pay him £206,400 a week

It's the clubs who mainly take the hits, most players with smart enough agents will have some sort of clause in their contracts that protect their clients from this, it's been on the cards for a while

invincibleILeak (CL-6WF) wrote:If it was only ever the case for foreign players in La Liga, it's strange that the league is full of Spanish players, there aren't a huge amount of the Spanish players playing abroad.

I tend to think that it's like the English players mentality, in that they like the lifestyle etc view La Liga as the best league so only really want to play in it and geniuenly love there country so don't see the point of leaving.
Real situation could be intresting, when you think that they've got Di Maria, Ozil, Higuian, Ronaldo & Kaka alone, that is a hell of alot of extra money they need to find on top of there expenses already.

54%....

We need a few Robin Hoods to put these governments right..

great news for the premiership- our leagues stock has gone up big time with that news- cant blame spainish law tho- blimey this euro crises is killing them.

"Barcelona and Real's wage bills stand to increase by tens of millions, with effects starting to show as players like Eric Abidal already stalling on new contracts because of the tax rise"

Well yes in effect they will- however contracts are only ever based on gross cost- theoritically the players are gettiung paid the same and clubs wont be just refundung the difference to the players that are still under contract- its just that they get taxed more- just think about itin the same way as tax works for you- it changes from time to time- however your employer doesnt foot the bill if you have to pay more tax!

the employers cost is the same- the employees cost is more

It's when the players come to renegotiate the problems arise, the players will want to be paid the same as they had been paid, so the club will have to pay more so that their wages after tax are the same as they were before. If tax rises, the club has to pay more.

thats correct it will cost them more(theoritically it doesnt have to)- however there are people on this thread assuming that contracts in spain are signed for net figures- which offcourse is never the case.

The outcomes dont look good for spain- the prem wil be alot more appealing, but secondly and maybe even more importantly it isnt going to help the spainish league due to the fact that the top 2 clubs are subsideded by the government anyway, they will still be able to pay what they want to get players, but its just gonna get even harder for the smaller clubs to get better, the massive gap will just get bigger and bigger!

I actually asked Graham Hunter about this last year on twitter in regards to Mascherano and he said that the tax had went up a few years ago

beckham law was lifted in 2010

so forign footballers started paying the same tax as everyone else in spain.

the higher band of tax was 43%.

now spainish tax is going up- therefore the fpootballers will pay more tax, but thats the same as everyone else in the country.

however 43%- 56% is still a big leap.

"To jump from 24% to 50% was always going to be costly for.a British Club"

well our higher end of tax was 40%



the fact is at the moment the premier operates on 50%, spain will operate on more than that.

therefore you used to get more bang for your buck in spain, now you will get more bang for your buck in the uk- but the difrences touted about on this thread are incorrect.