Ronaldo, Kaká, Beckham and Spanish Tax Rates
Ronaldo + Kaká and Spanish Taxes
Real Madrid have stunned the World of football, or soccer, by announcing a series of transfer coups. Their signings of Kak’a for 70 million Euros followed by Ronaldo for 95 million Euros give or take a million and depending on the exchange rate, is supposed to send a message out about the brand.
The question to be asked is how do Real Madrid manage to get the money to do this? 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…
You need to know what the Beckham Law is then? Well check out the Wikipedia description for Beckham Law. This means that the set tax rate of 25% can be applied for up to six years avoiding the higher tax rates in the UK and Italy. Tax rates are now at 50% in the UK after the recent rise, so expect a lot of players to move very soon saying that they have always wanted to move and play in Spain and they have always supported the team they are moving to… This is evidently a lie. Tax is the reason simply put. By earning the same they can be up to 50% better of than in the UK.
How can 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 are required to spend over half the year in Spain which is not too great a cost. This of course means setting up a company before you come to Spain and then giving yourself a contract in the company.
Then of course you need to buy a property with the amazing amount of saved tax to give yourself a good investment. Spain’s first 30 million Euro property has just been designed and started in Mallorca suggesting that prices at the super-rich level are standing up to the World economic crisis. For more information on tax, Spanish property sales and much much more get in touch with houses for sale in Spain. You can save an absolute fortune on your Spanish property purchase.
