Klaus wrote:
Claudius wrote:
It used to be more expensive until the amended tax law about 5 years ago.
The issue was this: Buying club paid the player the buyout clause. Revenue Authority teated that transfer as a taxable personal income. So the buying club needed to pay Release clause + Tax. And then the player would pass the buyout clause on to the selling club.
Now it's all tax exempt. So the same flow of funds occurs, but no tax.
There are still administrative fees and other things being added on top though, right? Some of which have increased massively in the light of bloated football transfers. I don't have much insight into how things are handled but the tax reform has not led to release clauses being activated that much more often in Spain to my knowledge.
I don't know about any administrative fees, to be honest. I just know about the income tax issue because it was so punitive given that prevailing marginal personal tax rates were about 45% in Spain. The Spanish buyout has no personal income tax, no VAT, and has two capital gains taxes that net out to zero.
Taxes are common features though on transfers. The British government charges us VAT on transfers, which makes sense.
I suspect all that Spanish clubs have done in response to the ruling, is increase new buyouts by some difference between the pre-tax and post-tax amount, to split the value with buying clubs.
