Khel Now logo
HomeSportsIPL 2024Live Score
Advertisement

LaLiga

Government of Madrid looking to implement “Kylian Mbappe Law”: Reports

Published at :April 22, 2024 at 11:48 PM
Modified at :April 22, 2024 at 11:48 PM
Post Featured Image

Rajarshi Shukla


Mbappe is set to join Real Madrid next season

According to a report, the government will alter tax regulations in response to Real Madrid’s pursuit of Kylian Mbappe, thereby reducing the financial strain on Los Blancos to sign the PSG player.

According to Mundo Deportivo, the self-governing body of the Madrid region is about to enact the “Mbappe Law” in an effort to assist the team in acquiring the superstar, who is 25 years old.

Mbappe is expected to receive a big salary and might potentially set a global record as a signing bonus, even though the move will formally be a free transfer. As a result, it will put the club’s finances under extreme strain.

But a measure from the regional government aims to help Real Madrid land their man and lessen the huge pay cut he will inevitably experience upon finalising his departure.

According to Mundo Deportivo:

“The Community of Madrid is processing the approval of the so-called Mbappé Law that will eliminate regional personal income tax for foreigners who settle in the capital of Spain and carry out investments.

“If the Law passes and Real Madrid complete the signing of Kylian Mbappe, the France star will pay 24.5% of personal income tax, only 2% more than what workers who earn between €12,000 and €18,000 gross per year.

“If Mbappe, as everything indicates, ends up signing for Madrid, it is estimated that his salary will be around €30 million net per season, so he would pay the same personal income tax as a Madrid native who earns €20,000 gross.”

Laws have already been altered to Real Madrid’s benefit; David Beckham is 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 moved to Spain to work pay a fixed personal income tax rate of 24% regardless of income,” Mundo Deportivo notes.

For more updates, follow Khel Now on Facebook, Twitter, and Instagram; download the Khel Now Android App or IOS App and join our community on Telegram.

Advertisement
Advertisement