Premier League to benefit as Spain announces 56 per cent tax band for top earners

Blatter

http://www.dailymail.co.uk/sport/football/article-2084066/Spains-56-cent-tax-football-earners.html

Premier League to benefit as Spain announces 56 per cent tax band for top earners

Fans of Barclays Premier League clubs could receive a huge boost from an unlikely source as it has been revealed the Spanish government plans to introduce a whopping 56 per cent tax band for top earners.
The new rate of income tax would hit foreign football stars hard, leading them to look elsewhere for their next megabucks deal, directing them to the richest league in the world.
La Liga had been living a charmed life under the old ‘Beckham Law’, introduced just before the former Manchester United midfielder joined Real Madrid in 2003.


Under that system foreign players only paid 24 per cent tax - which was lifted in 2010 - and this has now been replaced with the new system, clearing the way for English clubs to compete on an even footing with their Spanish counterparts.
Jose Maria Gay, economics professor at the University of Catalunya, told The Sun: 'Now foreign players will be more expensive.
'Before, thanks to the cushy Beckham Law, we were among those who paid the least in that area and now we are among those who pay the most.
'It is 54 per cent — 56 per cent in Catalunya. The repeal of the Beckham Law along with the rise in income tax is a bad joke.'

The rise in the top income tax band to 54 per cent - or 56 per cent in Catalunya - could pave the way for the likes of Cristiano Ronaldo to return to the English top flight.
While fans across the country will be licking their lips in anticipation of the arrival of some of Spain’s top talent in this country.

Interesting development that would be very important in terms of the PL attracting more of the top players.

GLaDOS

Only right to be fair, from a non football point of view it is ridiculous that people on wages as high as some of Madrid and Barca's players (and others obviously) only paying 24% tax.

How come it is gonna be higher in Catalunya?

niallo27

Blatter wrote: »

http://www.dailymail.co.uk/sport/football/article-2084066/Spains-56-cent-tax-football-earners.html




Interesting development that would be very important in terms of the PL attracting more of the top players.

Wont this just mean they will have to pay their accountant a small bit more to sort it out all out for them.

mike65

The very top young players will still look to Real and Barca first I'm sure, but the next level and older players thinking about protecting income might well switch.

/cue Xabi Alonso return!

DrumSteve

Blatter wrote: »

http://www.dailymail.co.uk/sport/football/article-2084066/Spains-56-cent-tax-football-earners.html




Interesting development that would be very important in terms of the PL attracting more of the top players.

Can't see Madrid or Barca losing too much sleep over this, though they will have to pay a few more shekels in future.

Blatter

DrumSteve wrote: »

Can't see Madrid or Barca losing too much sleep over this, though they will have to pay a few more shekels in future.

I would say that they are definitely not happy about it. Big wages and a low tax rate was a big contributing factor as to why players like to go there.

It should be a positive for the PL as a whole anyway. Players that would have joined Atletico in the past, may favour a move to Tottenham now for example.

Morzadec

ScienceNerd wrote: »

Only right to be fair, from a non football point of view it is ridiculous that people on wages as high as some of Madrid and Barca's players (and others obviously) only paying 24% tax.

How come it is gonna be higher in Catalunya?

The autonomous communities in Spain have a fair amount of say in conducting their own local affairs and I would assume it has some power to set it's tax rates and perhaps this is why the rate is slightly higher in Catalunya

DoctorGonzo08

DrumSteve wrote: »

Can't see Madrid or Barca losing too much sleep over this, though they will have to pay a few more shekels in future.

I think it will upset Madrid quite alot. It would throw a spanner in their big name signings campaigns. Would they have captured the likes of Kaka, Di Maria, or Ozil if they couldn't offer them the wages they have. Granted Ronaldo might have still gone.

I think its only right anyway. Was getting sick of Barca's renaiging on transfer value and forking out on the wages.

What it could be of more benefit to is Serie A. They can still offer the wages and they have really resurected their class again in the likes of Milan and Napoli. I think alot of the Spanish pool will opt for Italy before England I would think.

Pepe LeFrits

niallo27 wrote: »

Wont this just mean they will have to pay their accountant a small bit more to sort it out all out for them.

I'm sure nobody would notice if Cristiano Ronaldo starts taking home 30% per month than he's supposed to...

This change is heartening to see. How much it'll change I don't know - I can see City merely replacing Madrid as Europe's leading footballer stockpiler.

DrumSteve

Blatter wrote: »

I would say that they are definitely not happy about it. Big wages and a low tax rate was a big contributing factor as to why players like to go there.

It should be a positive for the PL as a whole anyway. Players that would have joined Atletico in the past, may favour a move to Tottenham now for example.

Really? I though everyone who played for Barca had it in there heart to play for them since they were a boy and wages would not matter...

Cantona's Collars

Welcome home Ronnie:D:D

DoctorGonzo08

DrumSteve wrote: »

Really? I though everyone who played for Barca had it in there heart to play for them since they were a boy and wages would not matter...

Where did you hear that? Javier Mascherano?

"I was sick of playing in England and being classed as one of the best defensive midfielders. I longed to go to Barca since I was a boy so I could prance around like a fairy and learn the true art of football in the gentle acrobatics and rare form of dance called theatric diving".

Obviously not actual quote.

Barca players are as much mercaneries as any other player once you get passed the romantic marketing that is being flouted around them.

GLaDOS

DoctorGonzo08 wrote: »

Where did you hear that? Javier Mascherano?

"I was sick of playing in England and being classed as one of the best defensive midfielders. I longed to go to Barca since I was a boy so I could prance around like a fairy and learn the true art of football in the gentle acrobatics and rare form of dance called theatric diving".

Obviously not actual quote.

Barca players are as much mercaneries as any other player once you get passed the romantic marketing that is being flouted around them.

We're gonna need a sarcasm detector over here

Bodhisopha

DoctorGonzo08 wrote: »

Where did you hear that? Javier Mascherano?

"I was sick of playing in England and being classed as one of the best defensive midfielders. I longed to go to Barca since I was a boy so I could prance around like a fairy and learn the true art of football in the gentle acrobatics and rare form of dance called theatric diving".

Obviously not actual quote.

Barca players are as much mercaneries as any other player once you get passed the romantic marketing that is being flouted around them.

Please elaborate on this.

GavRedKing

DoctorGonzo08 wrote: »

Where did you hear that? Javier Mascherano?

"I was sick of playing in England and being classed as one of the best defensive midfielders. I longed to go to Barca since I was a boy so I could prance around like a fairy and learn the true art of football in the gentle acrobatics and rare form of dance called theatric diving".

Obviously not actual quote.

Barca players are as much mercaneries as any other player once you get passed the romantic marketing that is being flouted around them.

ScienceNerd wrote: »

We're gonna need a sarcasm detector over here

:pac:

Neil3030

How any government can justify charging someone EUR2m+ per year to live in their country is beyond me.

That said, those rates aren't actually that much higher than they are in the UK. A pension contribution here, investments in liability reducing schemes there, I doubt the players will see any more than about 10-20% of their wages being confiscated.

DoctorGonzo08

Bodhisopha wrote: »

Please elaborate on this.

In what way? If Chelsea, City players etc are classed to be a team of mercs, are Barca somehow removed from this? Nowadays all top teams have players on their books that wouldn't be there if the wages weren't there.

Effectively 90% of the City squad wouldn't be there. But would Torres be at Chelsea, Suarez at Liverpool, Young at Utd etc etc.

Ronaldinho or Eto'o are exactly the same. Ibrahimovic?

In the current team would Villa, Sanchez or Mascherano be there if they didn't have the allure of wages.

The mmain driver at the moment id obviously the success of the club. But that won't be long shifting if you can't offer the wages players expect.

Bodhisopha

DoctorGonzo08 wrote: »

In what way? If Chelsea, City players etc are classed to be a team of mercs, are Barca somehow removed from this? Nowadays all top teams have players on their books that wouldn't be there if the wages weren't there.

Effectively 90% of the City squad wouldn't be there. But would Torres be at Chelsea, Suarez at Liverpool, Young at Utd etc etc.

Ronaldinho or Eto'o are exactly the same. Ibrahimovic?

In the current team would Villa, Sanchez or Mascherano be there if they didn't have the allure of wages.

The mmain driver at the moment id obviously the success of the club. But that won't be long shifting if you can't offer the wages players expect.

I have never classed City or Chelsea as a team of mercs, so i have no issue there. It's a massive stretch to say Barca players are as much mercenaries as any other players when you really don't know, how could you? They are the greatest team ever so it's difficult to separate the motives.
But going on the players currently playing for Barca that you mentioned - Sanchez turned down bigger offers from City to play for Barca. Mascherano took a pay cut to play for them. I'm sure Villa could've earned more elsewhere also, he was highly sought after for a number of seasons before joining Barca and turned down many offers to play abroad for what i'm sure would've been pretty big wages.

everdead.ie

If I remember correctly in Spain a lot of deals are done post tax so players will take home the same and clubs will pay more.

stovelid

ScienceNerd wrote: »

How come it is gonna be higher in Catalunya?

The regional smugness emissions tax also has to be factored in.

Blatter

Bodhisopha wrote: »

I have never classed City or Chelsea as a team of mercs, so i have no issue there. It's a massive stretch to say Barca players are as much mercenaries as any other players when you really don't know, how could you? They are the greatest team ever so it's difficult to separate the motives.
But going on the players currently playing for Barca that you mentioned - Sanchez turned down bigger offers from City to play for Barca. Mascherano took a pay cut to play for them. I'm sure Villa could've earned more elsewhere also, he was highly sought after for a number of seasons before joining Barca and turned down many offers to play abroad for what i'm sure would've been pretty big wages.

Did they actually turn down lower net wages, or are they actually getting paid more at Barca due to the tax system? Barca have massive bonuses as well AFAIK.

I would say money is the most important thing for 95% of footballers. How much more important it is in comparison to footballing ambition would vary from player to player.

barone

sure most of barc's team are spanish,or hold spanish passports, real madrid are the ones who usually buy in the big money foreigner.. usually.

Squall19

Don't they have very very smart accounts who find loopholes for this?

They will set up complex tax avoidance schemes for all these Barcelona, Madrid stars etc.

If anyone thinks the money men will let Messi, Ronaldo etc leave over this they are crazy.

It's a non starter.The rich pay very little tax and you can be sure the worlds 2 biggest clubs wont be held to ransom by a few politicans.

The plebs and the poor pay the most tax as a percentage of their income.

Every Government goes for indirect taxes, your Vat, excise duties.

DoctorGonzo08

Bodhisopha wrote: »

I have never classed City or Chelsea as a team of mercs, so i have no issue there. It's a massive stretch to say Barca players are as much mercenaries as any other players when you really don't know, how could you? They are the greatest team ever so it's difficult to separate the motives.

But going on the players currently playing for Barca that you mentioned - Sanchez turned down bigger offers from City to play for Barca. Mascherano took a pay cut to play for them. I'm sure Villa could've earned more elsewhere also, he was highly sought after for a number of seasons before joining Barca and turned down many offers to play abroad for what i'm sure would've been pretty big wages.

It is statements like this that annoys me about the current trend of support Barca is cool. This is a seperate argument anyway.

And why is it a massive stretch to compare Barca players with any other player? I don't get this 'holier than thou' status Barca players seem to have.

Blatter wrote: »

Did they actually turn down lower net wages, or are they actually getting paid more at Barca due to the tax system? Barca have massive bonuses as well AFAIK.

I would say money is the most important thing for 95% of footballers. How much more important it is in comparison to footballing ambition would vary from player to player.

Exactly what I'm saying. There is a big diff in Gary Cahill getting £120,000 a week in England and being offered the same in England. Hence the thread arument that the tax move in Spain levels the playing field with England.

And yes, money is very important to footballers. There are very few you could say would choose club over cash.

greendom

barone wrote: »

sure most of barc's team are spanish,or hold spanish passports, real madrid are the ones who usually buy in the big money foreigner.. usually.

Might attract a few more top Spanish players to the Premier League too

tommyhaas

Bodhisopha wrote: »

I have never classed City or Chelsea as a team of mercs, so i have no issue there. It's a massive stretch to say Barca players are as much mercenaries as any other players when you really don't know, how could you? They are the greatest team ever so it's difficult to separate the motives.
But going on the players currently playing for Barca that you mentioned - Sanchez turned down bigger offers from City to play for Barca. Mascherano took a pay cut to play for them. I'm sure Villa could've earned more elsewhere also, he was highly sought after for a number of seasons before joining Barca and turned down many offers to play abroad for what i'm sure would've been pretty big wages.

I doubt Masch took a pay cut to join Barca, they play huge money. Granted I don't know what he's on, but I'd assume it is far more then at Liverpool. I'm sure Villa and Sanchez could have got more at City or Chelsea, but I'd still imagine both are on well over €100k/wk

Someone made the point earlier as well about Villa going to Barca purely for money, pretty sure I read somewhere he was a Barca fan

RayCon

tommyhaas wrote: »

I read somewhere he was a Barca fan

For €100K+ a week we'd all be Barca fans

Optimalprimerib

The government will probably regret this decision in the long run. For most players, to play for Barcelona in the time that they are regarded as the best team of all time, would be a massive honour that all the money in the world could not replace... Initially

Take fabregas for example, they dis not have to pay a penny over what he was worth, they just had to bide their time because they knew, eventually they would get their man.

That will not last however as the lure of money also exists. Squad players may be easier to lure away from barca or Madrid, and all the top players from the other teams in that league.

The inevitable result of this if the players are not protected in some way will be a further deterioration of the Spanish leagues, pushing it below the English, german and Italian leagues.