Summa 26 TW: Page 134 - The Arsenal discussion forum and community: One more in the Tolly

Summa 26 TW

QuincyAbeyie

Klaus not quite. In Spain every player is required to have a release clause, but iirc the player has to pay it so the buying club has to pay the player or something.

Partey's was 50m. If the club doesn't want a release clause they can just set it unrealistically high - like Vinicius who has €1 billion.

Tam

QuincyAbeyie but iirc the player has to pay it so the buying club has to pay the player or something.

I don't know if it's changed in recent years but one of the tricky issues about this was that the money given to the player by the acquiring club was considered income and therefore taxable on the individual.

JazzG

Tam

I remember reading that as well, just put it through an AI bot and it says this

No — under current Spanish tax rules there is no extra tax “on top” of a La Liga release clause in the normal domestic case, and the money is not treated as taxable income for the player.

How the payment actually works

In Spain the cláusula de rescisión is a unilateral contractual right of the player. Legally the player (or their representative) must deposit the full amount with La Liga. La Liga then pays the selling club.

In practice the buying club advances the money to the player/representatives, who deposit it. The payment must be made in a single lump sum — instalments are not allowed for a pure clause activation.

Tax treatment (current rules since 2016)

The Spanish tax authorities (Dirección General de Tributos) clarified the position in two binding rulings in 2016 (V3375-16 and V3549-16). These remain the governing doctrine:

| Aspect | Treatment | Result |
|--------|-----------|--------|
| Money received by the player from the buying club | Capital gain (ganancia patrimonial) | — |
| Payment made by the player to the selling club (via La Liga) | Capital loss (pérdida patrimonial) of the same amount | Offsets the gain |
| Net effect for a Spanish tax-resident player | Gain and loss cancel each other | Zero IRPF |
| VAT (IVA) | Treated as pure indemnity/compensation, not a supply of goods or services | Not subject to VAT |
| Buying club | Acquisition cost of an intangible asset (federative rights) | Amortisable under corporate tax rules |
| Selling club | Income from disposal of the rights | Subject to normal corporate tax |

Key practical points:

There is no automatic tax surcharge added to the face value of the clause.

Unlike a normal negotiated transfer (which attracts 21% VAT), activating a release clause is VAT-free.

The player does not pay income tax on the money that briefly passes through their hands, provided they are a Spanish tax resident at the time.

Important exceptions and edge cases

Foreign buying club + change of tax residency
If a non-Spanish club activates the clause and the player ceases to be a Spanish tax resident in the same tax year (common in winter-window moves), the capital-gain treatment can create a Spanish non-resident tax liability (IRNR). Rates are typically 19% (EU/EEA) or 24% (other countries). In practice the buying club almost always absorbs this cost, so the true cost of the clause rises.

Pre-2016 situation
Before the 2016 rulings the money given to the player was often treated as employment income. That made activating a large clause extremely expensive (marginal rates of 45%+). The change in treatment is the main reason high release clauses became usable in practice.

Corporate tax side
Both clubs still deal with normal Impuesto sobre Sociedades consequences (income for the seller, amortisable asset for the buyer). This is ordinary business taxation, not an extra levy on the clause itself.

Summary

Buying club pays the exact face value of the clause (plus any practical extras such as the foreign-residency tax risk noted above).

No VAT is added.

The player is not taxed on the money under the normal Spanish-resident scenario because the capital gain and capital loss cancel out.

The formal flow is: buying club → player → La Liga → selling club.

This is one of the clearest advantages of the Spanish release-clause system compared with ordinary transfers.

JazzG

Sicario2 He's got a year left on his contract, unless a contract is agreed there is no chance in hell Perez lets him walk away for free especially considering their spending this window.

I still am not convinced we sign him, more down to money reasons but Mourinho's opinion ain't gonna mean shit if it means losing him for free.

Gunner89

Not that I particularly want vinicius but even madrid won't let him go into the new season without a deal and risk losing out on 100m+, mourinho can't influence that, his thinking is like the roman years where any sort of loss for chelsea worked

as for vinicius he's far bigger than di maria, ozil etc.and won far more with real too and is practically their main player, in ozil's time he was not in the caliber of benz or ronaldo

united forums are a laugh these days, thinking they can compete with us, for the first time in my life we are a better proposition for trophies AND money

RowJimmy

Tam
OK, it was my opinion at the time and I think it's been borne out.

Gunner89

We didn't buy out partey's contract, we paid the release clause

with vincius that isn't happening unless the club wants to go to administration

it's solely the fact he's in the last 12 months of his deal

the rest is too irrelevant to focus on

tazmania

And the release clause was 50 million all in. We spent 2 months faffing about to break the 50 into installments but Atletico said no. At the time the rumor was Atletico didn't think we'd pull the trigger all at once and surprised them right at the end

Claudius

Low likelihood we figure out a deal as complicated as this, but I am glad the team is trying. Immediately after winning a title and seeing 1 million fans parade in London, this is exactly the time to be sticking our chests out. We need players like Vini Jr now. He can do things with a ball nobody else can do on our team. Fuck a Morgan Rogers. But this will be hard for a few reasons

he's their second best player
they will want to save face if he leaves, so would likely only sanction if they confirm Olise, who is likely a 150m player
we cannot buy him out as we did with Partey. the cash amount of his buyout is 1Bn Euros

I would rather fail trying this than succeed with Rogers as the priority.

lorddulaarsenal

Do if poss.

Big Willie Champ

lorddulaarsenal Do if poss.

Thought you may have been doing some wordplay with do piss off but sadly not as you're missing an f.

Qwiss

lorddulaarsenal no thank you.

Cannon

Rumor is Havertz might be on the move. We are also eager to move on Jesus. With Vini jr links emerging seems logical as both Havertz and Jesus are on very high wages.

Gunner89

I'm in the minority but kai's 300k a week doesn't justify what he brings us, neither does jesus

Seeing as kai has his last big contract up, he might ask for a raise

but swapping both out to give vini 400-500k a week is just pure fifa, fm thoughts because it fundamentally then affects your ability to renew the elite players already in the squad like rice who will want more

that's the mistake utd made and then had any half decent youngster wanting 150-200k because they brought varane, casemiro etc at crazy wages

lorddulaarsenal

Vini and Bruno in would be unreal business

Mirth

Just came out of watching the Odyssey and this is what I see?

Feels very symbolic.

Gurgen

If we're being real, then this is not happening. I think we are just being used for contract negotiations. Vini has no good reason to move to Arsenal:

Real Madrid is the biggest club in the world
they will pay at least as much as we will
PL is much tougher, while Madrid is relaxed with good weather
English people are racist too

DiabyKungFu

Gurgen Vini has no good reason to move to Arsenal

Real Madrid want to play with a traditional center forward this season and they're signing Yan Diomande. Vinicius is being voted off the island.

MistaT

No reason?

We’re a massive club in a top city.

We’re on the rise, and he’d be an immediate Arsenal LEGEND if he helped us win the CL.

He’s tired of the overt racism in Spain.

Arteta is a real one.

I could go on and on, but we’re a great fit for him.

Gurgen

MistaT sorry but this is delusional. We are a small club compared to Real Madrid. Top players move from there when they’re not wanted, not because they want to go somewhere better.

GooneriC

Can't see us signing Vini , also the way he behaves when decisions dont go his way is a problem... if he thinks the refs in Spain are bad wait until he encounters some of these fools here.

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