The arrival of Kylian Mbappé at Real Madrid will encourage the government to modify tax laws in order to make the recruitment of the PSG star less expensive for the Merengue.
The daily El Mundo Deportivo claims that the autonomous government of the Madrid region is about to adopt the “Mbappé law” in order to help the club recruit the French genius. The latter should, as a reminder, join the Spanish club when his contract with PSG expires this summer.
Mbappé will pay very little tax
While he will be transferred for free, Mbappé is expected to receive a record signing bonus and a colossal salary. The club’s finances will therefore be put to the test.
A move by the regional government, however, is designed to help Real Madrid land the star it is aiming for and eliminate the massive revenue drop it faces when it has to finalize the deal.
This is what Mundo Deportivo reports: “The Community of Madrid is preparing the approval of the Mbappé law which will eliminate the regional personal income tax for foreigners who settle in the capital of Spain and make investments there. »
“If the law is passed and Real Madrid sign Kylian Mbappé, the French star will pay 24.5% personal income tax, just 2% more than workers earning between 12,000 and 18,000 gross euros per year. If Mbappé, as everything indicates, ends up signing for Madrid, it is estimated that his salary will be around 30 million euros net per season, so he would pay the same personal income tax as a Madrilenian who earns 20,000 euros gross. »
Mbappe law follows Beckham precedent
Real Madrid have already had the laws changed in their favor, with David Beckham having been one of the beneficiaries. “The Mbappe law is reminiscent of the famous Beckham law applied in 2005, two years after the signing of the English midfielder from Manchester United. This law consisted of a tax regime that allowed foreigners who settled in Spain to work paying a fixed rate of personal income tax of 24%, regardless of their income. note Mundo Deportivo.
