Tax differences between the European leagues

This table is from an Ernst & Young study published in 2006. It lists the total costs of €2m in net wages for clubs from the 6 richest European leagues. While it is a 2006 study, it should still be representative.





The bold "Gesamtkosten" part is of interest here. As can be seen, Spain has a huge advantage with their '25% flat tax' (for foreign players). The same applies to Holland to a lesser degree, Spain and Holland have a lower tax rate for foreign players. France has a huge disadvantage - French clubs basically have to pay twice as much as their Spanish counterparts (for foreigners). In England, taxes are going to rise soon, so EPL clubs have to pay more soon also.

Andrey Arshavin Commits Future To Arsenal Despite Tax Frustrations
Arsenal are not about to lose one of their best players, but he is not happy with his earnings...


Andrey Arshavin is not pushing for a move to Barcelona and is preparing for the new season with Arsenal, but he is still concerned by the tax situation in the United Kingdom.

The Russian international was linked with a move to the Camp Nou once again this week, only a year after posing in a Barca shirt while still a Zenit St. Petersburg player.

After joining Arsenal in January, Arshavin looked happy until the tax level in England changed and saw him lose 50 per cent of his wages and he made his feelings known.

But the player's discontent has not meant that he is desperate to leave and he has explained that the stories linking him with Barcelona are mere speculation.

"That is nothing more than a rumour," he told Sport Express.

"I'm an Arsenal player and the only thing I am thinking about is preparing for the new season.

"If they do not solve the tax issues in England, it's possible that they will see an exodus of stars.

"But, in my view, the Premier League is still the best.

"However, we will find out when we see what happens in the Champions League, of course."

Lucas Brown, Goal.com

Supid French governement they should do something about taxes. They are too high compared to other countries.

That may be true, but honestly, why should football millionaires pay lower taxes than the average joe? That's anything but social and fair IMHO.

imo they should pay more, as they earn more

They do pay the highest tax rates, due to their ridiculously high wages. I had the 'special treatement' in Spain and Holland in mind. Example: Why should a successful Spanish entrepreneur pay considerably higher taxes than a foreign footballer, provided both earn the same?

That's foolish I agree. Who care's if they're citizens or not, the taxes go to the same government anyway...

Taxes go to the government

Yeah or well, it goes to the country that is, which is run by the gov

Very interesting article about the implications of the tax increase in Britain for the Premier League. Unfortunately, German only.

http://www.spox.com/de/sport/fussball/international/england/0908/Artikel/manchester-united-fc-chelsea-arsene-wenger-fc-liverpool-fc-arsenal-exodus-ronaldo.html

Britain is going to increase taxes in April 2010 and the consequences for Premier League clubs will be quite severe. The weak pound in combination with increased taxes will reduce the spending power of EPL clubs considerably, as Wenger fears, and make the league less attractive for foreign top stars.

There is an interesting table in the article, similar to the one I posted earlier, but with updated numbers. What are the total costs for clubs from various European countries for players who earn €3m after tax?



The UK will have the highest tax rate of all in 2010, even surpassing France! Foreigners in Spain have to pay the lowest tax rate, hence Spain will benefit from this the most.

Bad news for E.P.L for sure and good news for the liga and serie A. However, til there will be millionaires or billionaires in the business wages will remain high but this tax increase might cause a problem for clubs that don't have a super rich owner.