Premier League can’t compete with low tax rates in Spain

The Spanish taxation system is putting the English Premier League at a disadvantage, based on the fact that superstar players may be more likely to adopt their more generous breaks.

According to leading agent Phil Smith, England’s plan to increase the top level of income tax to 50 percent will pale in comparison to Spain’s 27 percent tax rate. As a result, foreign players are exploring other avenues and showing disgust at the level of National Insurance contributions in England, as reported by The Telegraph.

Despite the fact that players like Franck Ribery and Karim Benzema receive healthy paychecks from their existing clubs, talk of a potential move to the English side has recently surfaced. However, while making the transition to an English team would increase their salaries, the income tax level could cancel out the financial benefits of such a transfer.

Speculation has also suggested that the pending tax hike played a role in Cristiano Ronaldo’s decision to abandon Manchester United. With Ronaldo ready to receive a six-year span of income at Real Madrid, he will save himself about GBP 15 million in taxes.
 
Along with a lesser rate, Smith notes that there are loopholes involved in Spanish tax laws, such as one that boasts a 15 percent tax break to foreign players who choose Spain over England.
 
Arshavin, who left his 13 percent Russian tax rate to call Arsenal home, has urged players to consider the upcoming tax increase in England before switching clubs.