It shows up Real Madrid can utilize a duty loophole in the event that they decided to sign Cristiano Ronaldo, let us clarify.
As all of you know, the one reason Los Blancos wouldn’t sign the headliner is because of his raised pay of €31 million.
In the event that he was a footballer who has been living in Spain for over a year, the club would need to cover the typical taxes.
In any case, this splendid loophole comprises on making Ronaldo sign a one-year contract to maintain a strategic distance from a considerable amount of cash in taxes.
This permits Real Madrid to offer the star the equivalent €31 million however just compensation 19% of taxes as they think of him as a meeting player.
This implies Real Madrid would just need to pay €40 million for every season with taxes included.
In the event that you don’t recollect, this was generally what the club previously paid for Ronaldo when he acquired €20 million after-charge.
This implies Real Madrid has another negotiating advantage in the event that they decided to take Cristiano back for one season.
Ronaldo’s duty loophole clarified by a professional
Diario AS counseled legal advisor Toni Roca, who is a Sports Law master in Spain.
He clarified how the picture rights are additionally something Cristiano Ronaldo would try not to pay to the taxman in the event that he marked a one-year contract at Real Madrid.
“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.he said
“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.”