Tax in several european leagues

pic: pajakpribadi.com

Have you thinking why Spanish clubs has players with high contract? Even, several transfer records was made by Spanish club. Based on Ernst & Young research, the tax might be the answer. Tax in Spanish is lowest than other european countries like England, France, Germany, and Italy.

Let's take an example to discuss it. Kaka has a 5,5 million euro's contract in Milan. But Milan should pay 11.074.811 million. besides fee, Italian Club ( like Milan) should pay player tax, about 42,87 % for their country, and others cost.

What if kaka played in spanish Club, e.g. Real Madrid ? In Spain, the club just pay less than 7,5 million euro, it's including 24,99 % tax and other cost. What a deep different between Spanish club and and Italian Club.

In England, tax is more higher than Spanish league, but it's lower than in Italy. England club should pay 10.282.921 million for the cost. It's including Kaka's salary and 38,48 % tax. But the club owner also influence in England. Roman Abramovich, Chelsea's owner, feel that cost isn't really matter to sign a player like Kaka.

Germany has a 43,19 % tax cost. If a German's club has a player with 5,5 million contract like Kaka, the club should pay 10.042.846 million, it's including Kaka's salary and the tax. I have no wondering why a lot of German's top athlete lives on other countries like Steffi Graf, Jurgen Klinsmann, Boris Becker, etc.

What about the situation in France? Tax in France isn't the highest ( it's only 40,83 % ), but plus other cost, it could be more than 50 %. So, if Kaka play with France club, the club should pay more than 14,5 million euro per year. What a fantastic cost for it.

Based on those explanation, it might be the reason whay Spanish club has players with high contract. With same cost as other club in other countries, they could offers more salary for the player. For the first 5 years work in Spanish club, a player could get 75 % from total club cost. It's different if the player played more than 5 years. Based on new progressive tax rule, on year of 2003, the club should pay 50 % tax for a player who plays more than 5 year.

Yeah, maybe it's not a false if lots of people says football now just like an industry. But, in my opinion, it's really doesn't matter as long as the important values on this sport doesn't disappeared. Do you agree with it?

source: La Gazzetta dello Sport