Ronaldo, Kaká, Beckham and Spanish Tax Rates
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.
So how is it that Real Madrid can spend these vast quantities of money? The first and most obvious reason is that of a self important chairman with more money than sense refusing to see how his last project fell apart before his eyes based on the same principles. Mainly though it is The Beckham Law that attracts them whatever Ronaldo may say about dreaming of playing for Madrid etc…
So how does the Beckham Law work? 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… They are lies. Tax is the reason simply put. It is only natural to want to save up to 50% on taxes I suppose.
How might you be effected by this? You can opt into the Beckham law tax rates for up to six years if you come to Spain and are earning a high salary through a Spanish company. You need to spend over 183 days per year in Spain, not a great hardship really. So for those of you contemplating moving to Spain get yourself a company set up here before you come and then get that company to give you a contract.
The tax you save can be invested into buying a property which will become a good investment of the money. The prices at the higher levels are standing up to the World economic crisis and Spain’s first 30 million Euro villa has just been started on Mallorca. For more information on tax, Spanish property sales and much much more get in touch with houses for sale in Spain. Thousands can be saved on potential property purchases in Spain.