If Spain lifts the World Cup this Sunday, the Treasury will collect nearly six million euros in income tax from the bonuses of the 17 players residing in Spain. Gestha's technicians have calculated the fiscal impact of the €754,702 prize per player.
Sporting glory comes at a price, and in Spain, a significant portion ends up in public coffers. The technicians from the Ministry of Finance (Gestha) have calculated that if the Spanish national team wins the World Cup final against Argentina, the 17 internationals playing in Spanish clubs will collectively pay nearly 6 million euros in income tax.
Of that amount, 4.4 million would go to the state tax agency, while the Treasury of Navarra would receive nearly 350,000 euros, and the provincial treasuries of Gipuzkoa and Bizkaia would each receive about 300,000 euros. The calculation is based on a bonus of 754,701.92 euros per player, which totals 12.8 million for the group of 17 footballers, in addition to their salaries and image rights.
Bonuses considered as employment income
According to Gestha, Spanish administrative doctrine classifies these bonuses as employment income for income tax purposes, even though there is no employment relationship with the RFEF. This prevents the application of the 30% reduction for irregularity if the player has already obtained other income generated over more than two years in the previous five years, something that players like Pedri, Gavi or Lamine Yamal have likely already done.
In contrast, the provincial treasuries do not have that limit, only a cap of 300,000 euros on which to apply the reduction percentages. This benefits players like Mikel Oyarzabal, Unai Simón or Nico Williams, who reside in the Basque Country or Navarra.
Comparison with other countries
José María Mollinedo, Secretary General of Gestha, points out that Spanish taxation is aligned with that of the United Kingdom, France and Germany, meaning that players in those countries, such as Rodri, David Raya or Martín Zubimendi, will be taxed similarly. In total, the national team has 17 footballers residing in Spain and others playing abroad, whose bonuses will be taxed in their respective countries.
For fans, this means that, in addition to celebrating a potential title, part of the prize will stay at home to fund public services. The final takes place this Sunday, and if Spain wins, the Treasury will have reasons to join the celebration.
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