November 5, 2009

End of Beckham Law, End of Top Stars in La Liga?

Six out of the ten highest-paid football players this season, in terms of net salary per year, shine in the Spanish League:

Ronaldo - Real Madrid, 13 million euros
Messi - Barcelona, 11 million euros
Kaká - Real Madrid, 9,5 million euros
Ibrahímovic - Barcelona, 9,5 million euros

Robinho - Manchester City, 9,4 million euros
Tévez - Manchester City, 8,8 million euros
Adebayor - Manchester City, 8,8 million euros
Benzemá - Real Madrid, 8,5 million euros
Henry - Barcelona, 7,5 million euros
John Terry - Chelsea, 7,5 million euros

The main reason for this is the Beckham law. Back in 2003, coinciding with the signing of David Beckham for Real Madrid, Spanish government decided to lower to 24% the taxes for foreign jobholders earning over 600,000 euros-a-year, in order to attrack high qualified workers such as top scientists and investigators. This measure has had the greatest impact not in labs but in fields: Beckham law has encourage to arrive to la Liga the best football international players that in other European leagues would have to pay higher taxes: 50% in the Premier League (since April), 45% in the Bundesliga, 43% in the Serie A, 40% in the French Ligue and 30% in the Dutch Eredivisie 40%.

But this Beckham law seems to have an expiration date. From next year on, higher salarys will have to pay higher taxes. Fortunately for Ronaldo, Messi, Kaká, Ibrahímovic and their clubs it won't be applied retrospectively.

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