There are increasing indications regarding the imminent transfer of Kylian Mbappé, the star of Paris Saint-Germain, to Real Madrid next summer. The newspaper "Le Parisien" reported from the Spanish outlet "Nacional" that the Madrid government is about to approve a law that provides tax benefits exempting foreign citizens in the Spanish capital from regional income taxes.
The newspaper added: "This law has been dubbed the Mbappé Law, and it also reminds us of the Beckham Law issued in 2005, which was applicable throughout Spain." It clarified that the new law is expected to be easily adopted in the Madrid Parliament, as it has significant support from the People's Party, which holds an absolute majority in Parliament.
The newspaper pointed out that this law might be issued before the potential arrival of Mbappé at Real Madrid in early July. While some may think it is tailored for the French star, it is not, as this law has enjoyed support from the right-wing party in Madrid for years.
It was noted that under this law, the French player would pay an income tax of 24.5%, which is only 1.7% more than what a Madrid resident would pay with an annual income ranging between 12,000 and 18,000 euros.
It also mentioned that this ideal support suits high-income earners in the Spanish capital compared to other cities, as Mbappé would face a 50% tax if he signed with a team in Catalonia, which is double the taxes imposed in Madrid.
In conclusion, this law aims to encourage private investment in Madrid and could benefit 30,000 foreigners, alongside a general budget deficit of 60 million euros.
