While awaiting Kylian Mbappé’s arrival at Real Madrid, the government of Madrid has made a special decision for the Frenchman.
Kylian Mbappé, barring a last-minute turnaround, is set to leave Paris Saint-Germain at the end of the current sporting season (2023 – 2024). As Real Madrid leads the race to secure him, the government of the Spanish capital has just made a decision that confirms the rumors.
Indeed, the Community of Madrid government is drafting a law that will benefit, as always, those with the most. Thus, the new rule, already known as the “Mbappé Law,” will abolish the payment of regional income tax for foreigners who create capital and make a certain type of investment.
The law is dubbed as such because it is being developed just as Real Madrid negotiates the signing of Kylian Mbappé. With this new rule in place, the financial offer that the white team can propose to the French star aligns more closely with his demands, potentially allowing him to earn whatever he wants if he chooses to continue playing for PSG.
The new “Mbappé Law” that the government aims to implement in Madrid is not a novelty in the country. This measure is reminiscent of the famous “Beckham Law” applied in 2005, two years after the signing of the English midfielder from Manchester United. This law established a tax regime allowing foreigners moving to Spain for work to pay a flat rate of 24% income tax, regardless of their income. Thus, if the law is eventually passed and Real Madrid completes the signing of Kylian Mbappé, the French star will pay 24.5% income tax, only 2% more than what workers earning between 12,000 and 18,000 euros gross annually pay.
If Mbappé, as everything suggests, ends up signing for Madrid, it is estimated that his salary will be around 30 million euros net per season, meaning he would pay the same income tax as a Madrilenian earning 20,000 euros gross.
All indications are that Kylian Mbappé will enjoy significant tax benefits once settled in Spain, which could, for example, compensate for any salary shortfall as he is expected to earn less than what he currently receives in Paris. And undoubtedly, in the near future, other top players will also benefit from this Mbappé Law…
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