Clubs using ‘artist tax’ loophole to attract players

The Allsvenskan clubs have found a loophole in the country’s tax law, which makes it possible to give new players tax efficient signing-on fees. Recently, Niclas Alexandersson, Stefan Selakovic, Teddy Lucic and Anders Svensson have all returned to the Swedish Allsvenskan - partly because they can be paid a lump sum while they are still abroad and only pay 15% tax on it. The Swedish government is allowing the players to pay a special 'artist tax' for artists who are living abroad, which is approximately 18% lower than normal income tax in Sweden. If the players live in Sweden, the clubs also have to pay 'employer's tax' which makes it even more expensive for the Allsvenskan clubs. However, because of the loophole, Elfsborg were able to sign Anders Svensson from English Premier League club Southampton and save €1.98m in taxes compared to paying the player in one lump sum when he eventually moved to Sweden. Svensson has already signed a contract but will see out the season with the Saints and return to his former club on July 1.