Friday, June 12, 2009

Ronaldo, Kaká, The Beckham Law and Spanish Tax Rates

So why are Real Madrid able to buy players for a ridiculous amount of money? There is one reason that is obvious, a reelected megalomaniac chairman who refuses to see his mistakes of the past. The main reason though is the "Beckham Law" whatever Ronaldo insists about dream to play for Madrid etc...

What is the Beckham Law then? Well have a look at this Wikipedia description. It means that your tax rate can be set at 25% for six years rather than a higher rate of tax such as that in Italy or England. With high tax rates at 50% maximum in the UK expect to see a flood of players opting to go to Spain rather than the Premier League stating that it has always been their ambition to play there, they have been fans since the year dot etc... They are lies. It's all to do with tax. They can earn the same money and be 50% better off.

How does this effect you? Well if you come to work in Spain earning a high salary with a Spanish company then you can opt into the Beckham Tax Rates for up to six years. You need to spend over 183 days per year in Spain, not a great hardship really. So if you are planning to come to Spain then think of setting up a company here beforehand and then give yourself a contract here.


  1. «««Real Madrid or Manchester United? What is the best for RONALDO?««
    YOU DECIDE.... !!!!!!!!!!!!!

  2. Love the idea of a 'Beckham law' ;-)

    If only it were that easy.

    Although there's a tax treaty between UK and Spain this operates to avoid double taxation. It doesn't over ride the UK tax laws. That means:
    1 - if you want to be subject to Spanish tax you must cease to be resident in the UK. This is MUCH harder now than it was under the old rules;
    2 - if you own a company and are found to be UK tax resident the company will also be deemed to be UK tax resident and subject to UK corporation tax.

    I guess though that none of this is relevant to footballers leaving the UK to live and work in Spain.

  3. Thanks for the advice Mark. I believe that Domicile is the key word here. I have a couple of very good lawyers here in Valencia that can help out with that so as to avoid being Uk tax resident when legally here.
    The Beckham Law is much discussed especially now Real Madrid and Barcelona want to sign everyone. Look at Etoo, I believe his wage demands are huge to go to Man City not just because it is Man City but also because his taxable rate is much higher in the UK.


Ebay Auctions of Spanish Stuff

About Me

Today is a new day, the sun is in the Sky. I wake up this morning and greet the new day.