The amendment to Spain’s tax law scrapping the concession given to Spanish football clubs, known as the ‘Beckham Law’ will cost FC Barcelona a projected €6.5 million annually, reports Catalan sports paper Sport.

The ‘Beckham Law’ is a benefit that top professional footballers can apply for within Spain’s tax law that exempt them from the 43% tax rate that all foreigners and non-resident with an annual income of €600,000 or more has to pay. Upon approval, they (in truth their club) will only have to pay the nominal 24% tax rate for the first six years of their contract. A concession designed to attract the best players in the world to play in Spain.

Of the ten foreign players Barcelona has, seven players will be affected by the amendment; Ibrahimovic, Henry, Keita, Maxwell, Chygrynskiy, Abidal and Touré, while having played in Spain for more than six years, Milito, Márquez and Alves has already exhausted their privileges.

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Real Madrid and Barcelona, being the two biggest clubs in the Spanish League have invested in more player signings over the years than other teams, and will be the most affected by the amendment in the income tax law that will scrap the special concession given to football clubs called the ‘Beckham law’, reports Catalan sports paper Sport.

Aimed at attracting top players to play in Spain, the ‘Beckham Law’ allows a foreign player the benefit of being exempted from paying Spain’s foreign resident income tax of 43%, and  choose to be taxed the nominal 24%, the same as any Spanish resident for a maximum of six years.

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