The news of the potential signing of Kylian Mbapp for Real Madrid has gone from the football fields to the offices of the Treasury, more specifically to those of the Minister of Economy and Finance belonging to the Community of Madrid. According to the economist Gonzalo Bernardos, and other voices that have joined the criticism, the Community of Madrid will be fiscally benefiting some players and their teams, as will be the case of the French player. Criticism arises after the announcement of the Mbapp Law which would reduce the burden of the Personal Income Tax (IRPF).
Although the player has not yet landed in Madrid, his possible signing for the white club has already generated numerous reactions and criticism after numerous reports suggesting that the Community would be preparing a new law that aims to reduce the tax burden for foreigners. who want to invest in the region. This would mean that, as with Beckham, These players will be exempt from paying some part of the taxes. Specifically, they will be able to deduct up to 20% of the autonomous section if they invest in the region.
For her part, Isabel Díaz Ayuso, president of the Community of Madrid, responded, arguing her decision: The Government does not want to lower state taxes, therefore, it will be up to me (Isabel Díaz Ayuso) to lower the taxes of the autonomous part. This occurs since personal income tax taxation is divided into two: the state part (24.5%) and the autonomous part (20.5%), thus adding the 45% that you would have to pay for your tax profits. According to Bernardos, despite this, the new legislation would subtract the profits from the community’s coffers, leaving only the part that corresponds to the State. However, this will only be true if invest a lot of money in financial assets.
Beckham’s Law
When English arrived in our country, a new law was launched that allowed non-residents who spent more than six months (183 days a year) to pay taxes only on the income obtained in Spain. That is, foreigners paid a fixed rate of 24% up to 600,000 euros and if that amount was greater, a rate of 45% was charged. Despite this, this law included that highly qualified professionals or who are the non plus ultra, will pay only 24.75%, when they should pay more than 45% in any autonomous communityas Bernardos recalled at the beginning of his speech.
For the economist, these tax benefits for those who make investments within the community are custom made and its only objective is to benefit people and groups, as is the case of the white club, according to Bernardos. On the other hand, in a video on Catalonia radio, he added: Everyone thinks that those who have the most are the ones who pay the most when the income tax arrives, well not all, because Every time a player arrives at Madrid, there is a special tax payment system for these foreign players..
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