As different case scenarios keep on evolving around Cristiano Ronaldo’s transfer saga, we need to take a look at the incredible tax loophole Real Madrid can use if they decide to sign Cristiano Ronaldo.
As it stands, it appears that Los Blancos can use a tax loophole if they chose to re-sign Cristiano Ronaldo. Here is what that means; as you know, the key reason why the Spanish giants wouldn’t sign the star player is due to his elevated wage bill of €31 million. Meanwhile, if he was a footballer who has been living in Spain for more than a year, the club would have to pay the usual taxes. However, this brilliant loophole includes getting Ronaldo to sign a one-year contract in order to avoid quite a bit of money in taxes.
With that, therefore, it will allow Real Madrid to offer the Portuguese the same €31 million but only pay 19% of taxes as they consider him a visiting player. It thus, means Los Blancos will only have to pay €40 million per season with taxes included. Now let’s recall, this amount was roughly what the club already paid for Ronaldo when he earned €20 million after-tax. This means Real Madrid has another bargaining chip if they chose to take Cristiano back for one season.
A Pro Explains Cristiano Ronaldo’s Tax Loophole
Cristiano Ronaldo’s tax loophole has been explained by a lawyer Toni Roca, who is a Sports Law expert in Spain when he was consulted by Diario AS. The experienced lawman also explained how the image rights are also something Cristiano Ronaldo would avoid paying to the taxman if he signed a one-year contract at Real Madrid. Here is what he said: “If Real Madrid gave Cristiano a one-year contract, the Portuguese player would be considered a non-resident person in Spain. Since he doesn’t spend 183 days of the natural year living there, that’s how it works.”
“As a non-resident, he can avoid paying 50% of his wage in taxes in Madrid. Also, he would avoid paying taxes from any income he makes from sponsors outside of the country. This means Ronaldo would only have to pay 19% of his wage in taxes as a Real Madrid player. The advantage for the club is that they would have to pay less for the player and pay him what he wants after tax. And the footballer would pay nothing for image rights in foreign soil.”