Taxes Paid By A Footballer

Taxes paid by a footballer

Introduction

More and more players are investigated by the Treasury for the evasion of taxes, which leads us to ask ourselves, how many taxes a footballer pays? In general, it can be said that these professional players pay the maximum marginal, that is, at 47%. Said percentage corresponds to 85% of the athlete’s income and the other 15% can be paid through the companies tax. Next, more information about the taxes that soccer players must pay.

Developing

Footballers is Spain can redistribute their fiscal burden and thus avoid everything concerning the progressivity of the IRPF. In addition, as we are seeing, according to the law in force 85% of the income that a professional athlete has, in this specific case a footballer must be paid for the IRPF. This taxation is 47% marginal. On the other hand, the remaining 15% of income can be paid through companies taxes. In these cases, the benefit taxes 28% of the tax.

Although it may seem a very high tax, compared to other countries, such as France where a tax of around 75% is charged from a million euros, Spain is attractive to players and more especially for foreigners. With respect to the previous point, it is very important.

Previously, by the law known as Beckham, highly qualified personnel could pay 24%; Although the maximum was set at 52%, professional football players paid 24%. The previous law was modified and although the old signings that have a contract continue attached to the previous regulations, the new contracts will pay 24% the first 600.

000 euros of profit. After the previous amount, the player must cancel in the same way as the Spanish residents.

Another aspect that must be taken into consideration, in addition to the official residence of the player, is the place of Spain in which the athlete is. In this sense, a player living in Catalonia will pay more than 32.000 euros in tax that, for example, a player living in the community of Madrid. These differences between autonomous communities in Spain are due to the so -called autonomic sections. For example, the regional section in Catalunya amounts to 56% of the tax.

Another current law is one dating from 1975, where Spain established certain ties and agreements with different countries. A very tangible example is Brazil: if goalkeeper Iker Casillas had won the 720.000 euros for the World Cup, 25% of this amount should stay in Brazil. The reason for this lies in the law in which both countries undertake to avoid the double imposition. On the other hand, in addition to gross income from signing, many players take advantage of image rights to complement their finances. 

In this sense, the footballer hires a company to which he gives his rights so that he exploits the image of the player to the maximum, charging an important sum for it. Therefore, some basic rules have been established in this regard, highlighting the image rights that are linked to the club and that, of course, are intimately related to their work activity. The point is that everything related to image rights is a bit more complicated for fiscal purposes.

conclusion

If the player is giving a press conference with the emblem of the team, he will be considered a job performance, even if he charges it separately. The objective of the Treasury is to monitor all the activities related to the image, including when they are relatives of the player who manage the same. The taxes paid by a footballer can vary according to the official residence of the player, including internally in Spain. In general, it can be said that 85% of their income must be canceled to the maximum marginal of 47%.