Barca fumes as new ‘Mbappe law’ gives Real Madrid and other clubs in Central Spain an advantage. The coming summer transfer window could well define an era for Real Madrid. Kylian Mbappe has announced his departure from PSG and is set to don white next season, while others including Leny Yoro and Alphonso Davies are on the club’s radar as well......See Full Story>>.....See Full Story>>
Los Blancos’ arch-rivals, Barcelona, are meanwhile drowning in an economic crisis and are far from in a position to set the scores even with a big signing.
According to reports from SPORT now, the Catalan offices are even fuming about a law that will hand the men in white an advantage in all future transfer operations.
The Mbappe law
The Spanish outlet relayed that the community of Madrid is in the process of churning out a law that could be a game-changer for clubs in the Spanish capital.
In today’s world, a taxpayer in Spain who earns over €300,000 annually is required to pay taxes on two fronts. The national component extracts 24.5% of any income above the limit while the second instalment, which goes to the community, is at 20.5%.
The Governing Council and the Assembly of Madrid, led by Isabel Diaz Ayuso, however, are in the process of bringing out a law that will exempt individuals in Madrid from the second component.
As dictated by the proposed law, all people who live in the community of Madrid including foreigners can avail a whopping 20% exemption on the income tax owed to the community as long as they invest in it.
Thus, any player who plans to move to the Spanish capital in the future must shell out only 25% as taxes as opposed to other parts of Spain in what comes as a massive blow for clubs like Barcelona.
The Catalans, understandably, are furious at the development and even plan to discuss it in their next board meeting.
How much will Mbappe earn?
As revealed recently, Mbappe is set to take a big pay cut to sign for the club of his dreams.
His salary in Madrid will only stand at €15 million per year after tax, a big dip compared to the €75 million he earned in PSG.
While his salary will indeed see a steep fall, the introduction of such a law will significantly increase his earnings given that he can save up to 20%. Many believe that such a law is being instated only to lure the superstar to Spain.