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SBD Global/June 24, 2014/Finance

Spain's 'Beckham Law' Will No Longer Allow Foreign Athletes To Pay Reduced Tax Rate

A fiscal reform passed by the Spanish government will "change a regulation for foreign athletes known as the 'Beckham law,'" according to Francisco Núñez of EL MUNDO. The law "will no longer allow professional athletes" to pay a tax rate of 24% instead of the rate of 52% required for other Spanish citizens earning annual salaries of €300,000 ($408,000) or more. This "difference has helped Spanish football compete against clubs in other countries: in France, for example," players earning €1M ($1.4M) or more per year must pay 75% in taxes. The measure will affect "the new signings that basketball or football clubs make, but not those players who are already under contract." Under the "new reform," athletes will be taxed 24% on the first €600,000 ($815,000) they earn, and they will have to pay "the same rate as anyone else on the rest of their earnings," which will be 47% starting in '15 (EL MUNDO, 6/23).
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