Spain’s high tax rate was a contributing factor in Cristiano Ronaldo’s decision to join Juventus, according to La Liga president Javier Tebas. Ronaldo ended his nine-year association with Real Madrid when he agreed a switch to the Serie A champions worth €112 million (£100m/$130m), signing a four-year contract.
The Portuguese forward released a statement via Madrid’s website to explain his reason for requesting to leave, citing the need for a “new cycle” at this stage in his career. However, Tebas believes the move was also partially motivated by money, noting that the player will able to earn more in Italy.
“He’ll earn more money than here,” Tebas told Marca TV. “I think that fiscally it favours him to go to Italy. Here, in Spain, we have a problem with fiscal competition. Out of the biggest leagues, Spain is where the players have the worst tax situation. It’s not that elsewhere the rate is so much lower, but when you’re earning significant sums then these little differences in rates translate to a lot of money for the players.”
The five-time Ballon d’Or winner and Madrid’s all-time leading scorer’s issues with the Spanish tax authority in recent years was said to be a factor in his desire to leave the capital, as he suggested last year that he wanted to return to England because of the charges.
The former Real Madrid superstar agreed an €18.8 million (£16m/$22m) settlement with the Spanish Tax Agency which brought legal proceedings against him to a close. The Portugal international stands accused of four fiscal crimes relating to the taxation of image rights.
It was reported in April that the Treasury were exploring the option of withdrawing one of the accused crimes if the 33-year-old pleaded guilty. He would, however, have had to accept a minor prison sentence and pay a €10m (£9m/$12m) fine in order for that to happen. Instead, Ronaldo has reportedly sought to bring the saga to a close by paying the relevant authorities.
Spanish newspaper El Mundo reported details of a settlement on Friday and Omnisport understands, while it is yet to be formally ratified by lawyers, the terms of an agreement have been reached. Reports from AS in May claimed that a formal proposal of €14m (£12m/$16m) had been knocked back, with no agreement in sight at that stage.
El Mundo are now claiming that the Spanish Tax Agency are prepared to do a deal closer to the €19m mark. Ronaldo is said to have agreed to an admission of wrongdoing in the settlement, which lands him a two-year prison charge, but he will avoid serving a sentence – much like Lionel Messi and Javier Mascherano before him – and will be free of further sanction.
The Portugal international, who is readying himself for a World Cup 2018 opener against Spain on Friday, appeared in court last year to respond to the allegations, insisting “I always pay what I have to pay; I do things the right way and I will continue to do so.” His representatives, Gestifute, meanwhile, have persistently denied that any crimes have been committed.
The former Manchester United star has remained quiet when it comes to discussing the matter in public, although he did appear to attack the “fake news” surrounding his case in an Instagram post back in March. El Mundo now claims that Ronaldo has releaxed his stance during discussions with the Tax Agency, bringing a distracting episode to a close as his full attention is switched back to matters on the field.
Ronaldo faced a minor prison sentence and a large fine if found guilty, but denied the allegations of fraud as he appeared in court last year to declare: “I always pay what I have to pay; I do things the right way and I will continue to do so.” After repeating his desire to leave Madrid after their recent Champions League final win, he agreed to pay a sum of €18.8 million (£16m/$22m) to bring an end to the case and later completed the switch to the Serie A champions.