According to AS, Spain's government moved to expire the Beckham law – a statute that enabled foreign players who joined Spanish clubs, with a yearly wage of greater than €600,000 a year, to enjoy a lowered tax rate of 24% on their income.
The Beckham law, instituted shortly before David Beckham's transfer to Real Madrid in 2003 (for whom it is named) was a tax law legislated with the incentive of bringing Europe's top foreign talents to play in La Liga.
With the expiration of the law, players signed into Spanish clubs with an annual wage greater than €600,000 will now have 43% of their wages go to Spanish taxes rather than the previous 24%.
Spanish clubs will have eight days to sign players under the previous statute before the change goes into effect and Valencia have been one of the pioneers in doing so, signing Argentine forward Chori Dominguez before the new year.
In the past year, the current law (lower tax rate) affected 43 players in La Liga with Cristiano Ronaldo, Kaka and Zlatan Ibrahimovic being the principal beneficiaries.
Cyrus C. Malek, Goal.com