Piqué’s Andorra runs out of tax advantage in LaLiga

LaLiga has put a remedy to the great concern that existed among the Second Division clubs when Andorra achieved promotion from the First RFEF. Said club, belonging to another country, has a different tax system. The IRPF to be paid for the salary of the players is almost 37% less than in Spain, which would lead them to have more economic capacity to sign. This is not liked by the other clubs, who consider that it could give them a competitive advantage.

For salaries above 300,000 euros, the Spanish average of personal income tax to be paid is around 47%; while in Andorra it stands at 10%. In this way, Piqué’s club would pay, for a hypothetical contract of one million euros, about 100,000 euros and in Spain it would be 470,000 to pay for personal income tax. Leaving a difference of 370,000 euros. If the difference is added player by player, we would be talking about several million euros. Which would give Andorra a competitive advantage over the rest of the Second Division clubs.

To tackle this problem, the Delegate Commission of LaLiga has approved a variation in the salary limit regulation. All the players who register (both those who are already and the new signings) Andorra next season, will be counted that they must pay the average income tax in Spain (about 47%), even if they actually pay 10% . This means that it actually occupies a greater salary mass in LaLiga standards than it actually has and thus limits the room for maneuver to register players to the fiscal reality that the rest of the clubs experience in LaLiga SmartBank.