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.