Kylian Mbappé, star of the French national team, received an initial shock after completing his transfer to Real Madrid on a contract that extends until the summer of 2029. The "Radio Monte Carlo" network published a detailed report highlighting the reasons why Kylian is unable to benefit from what is known as the "Mbappé Law" in Spain.
The report indicated that this law is still under study before its official approval by the City Council of Madrid and the Spanish Parliament. The aim of this law is to encourage foreign investments in the Spanish capital, but it is not specifically targeted at Mbappé or other football players due to the high volume of transfers.
It further explained that the law stipulates a reduction in income tax for investors, both foreign and Spanish, to 20% of personal income as long as the money is invested within Madrid. Rumors have circulated that this law specifically targets foreigners whose income exceeds 300,000 euros per year.
Monte Carlo quoted the Spanish newspaper Marca as stating that the law aims to attract large companies driven by the desire to invest in the local economy. It was emphasized, through a tax director at a player marketing company, that this tax will apply to anyone residing in Spain for at least six years.
Francisco Salinas clarified that “the connection between this law and Mbappé's arrival is meaningless; Kylian will have to invest 250 million euros 'five times his annual salary' during his first year in Madrid.” According to this tax expert, this bill is not related to the law that was introduced in 2005 under the name "Beckham Law," which was amended to impose a 24% tax on foreign income.
