'Ronaldo moved to Juventus to enjoy tax incentives'
Italian media and fans believe that special tax policies for the rich are the reason that brought Cristiano Ronaldo to Serie A.
Naples-based Il Mattino reported that Italy introduced a flat tax in 2017. The aim of the law is to encourage investors and celebrities to move to Italy. Accordingly, Ronaldo will be exempt from paying tax on income earned outside Italy for just about $120,000. That income includes sponsorship deals, investment interest and even real estate.
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C. Ronaldo said he wanted to go to Juventus to find a new challenge. Photo:JFC. |
According to Forbes magazine in July 2018, C. Ronaldo ranked third in the list of highest-paid athletes, with 108 million USD. Of this, 61 million USD came from salary and bonuses and the remaining 47 million USD came from advertising contracts for Nike, EA Sport, Herbalife or Electronic Arts. These are all brands outside of Italy.
That means the $120,000 that C. Ronaldo has to pay to the Italian tax authorities each year is only equivalent to 0.25% of his advertising income. Meanwhile, in Spain, income tax for the rich is up to 45%.
Ronaldo's family can also pay a flat tax of around $30,000 to be exempt from income tax. "This law is used to recruit stars to Serie A. Italy is one of the few countries with a relaxed tax policy. Ronaldo's family members also benefit from this and $30,000 is enough for them," lawyer Sergio Sirabella told Il Mattino.
On July 18, La Liga President Javier Tebas also publicly stated: "C. Ronaldo left because of tax issues. In Italy, there is a new law that helps him pay less tax in Spain. This is something Real Madrid cannot change."
On the football section of the world's leading forum Reddit, a Juventus fan with the account Giaccherinho commented: "Actually, Italians here all know the reason C. Ronaldo came to Juventus is because of taxes. Almost none of us believe the reason is that C. Ronaldo wants to find a new challenge, or because he was applauded by Juventus fans after scoring a goal." This comment received the most responses.
Before leaving Real Madrid, C. Ronaldo was sentenced to two years in prison, along with a fine of nearly 23 million USD for tax evasion. Authorities stated that even if C. Ronaldo moved to Italy, the penalty would still be effective. Portuguese newspaper El Correio do Manha claimed that "C. Ronaldo sold everything in Spain", with the intention of cutting all ties with Spain.
