Cristiano has recently received an end to criticism following Juventus’ elimination at Porto’s hands in the Champions League last 16.
If Real Madrid want to sign Ronaldo, they should take into account Spain’s high tax rate
There have been rumours lately about Cristiano Ronaldo’s possible return to Real Madrid, but such a deal could prove difficult for Los Blancos taking into account Spain’s high tax rate. Cristiano has recently received an end to criticism following Juventus’ elimination at Porto’s hands in the Champions League last 16. “Cristiano enjoys a special tax regime in Italy,” explained Toni Roca. “He did not go to Italy by chance since the transalpine country has the most favourable tax regime in the top five leagues of the continent”. According to Roca, the Italian tax authorities receive only 225 thousand per year in tax by Cristiano. He earns about €40 million per season. However, this cannot happen in Spain since the famous Beckham Law was repealed back in 2016. While the country’s tax rate was much higher than in Italy.
Cristiano must reach an agreement to sign a one-year contract to avoid paying taxes
“For those €40 million that Ronaldo receives a year for image rights, Cristiano would have paid 100 times more taxes in Spain,” added Roca. “This means an increase from the €225,000 that he now pays in Italy to a whopping €20 million a year in our country. And that does not include salaries”. The only way to avoid paying Cristiano such high taxes in Spain will be if he reaches an agreement to sign a one-year deal for Real Madrid. “If Cristiano signed for Real Madrid for one season, he would be taxed as a non-resident. He would not pay for image rights, he would save €20 million and pay only 19 per cent of personal income tax,” says Roca.
In this case, Cristiano should leave Spain before June 30, 2022, to no longer be considered a Spanish resident. Otherwise, the tax rate would multiply. “Los Blancos would be affected because when a player negotiates his net salary. He would have to take care of the 30 per cent difference corresponding to the 2022 salary,” explains Roca. “In the case of Cristiano, he will go from paying taxes only on Spanish income to doing so with all income earned around the world, which will also include income from image rights.”