Spanish Supreme Court Upholds Ruling Against AS Monaco in James Rodriguez Tax Case
The Spanish Supreme Court has rejected AS Monaco's appeal against the ruling of the National Court, which sentenced the club to pay €6.6 million to the Spanish Tax Authority for the transfer of Colombian footballer James Rodriguez to Real Madrid in 2014.
Spanish law establishes that the economic rights obtained by a non-resident club or sports entity from the transfer of a player to a club or sports entity resident in Spain constitute a capital gain subject to Non-Resident Income Tax for the foreign entity.
Thus, Monaco will have to pay the Spanish Tax Authority for the money received from James' transfer to Real Madrid, valued at €75 million, according to the Supreme Court.
Since the Monegasque club had bought the player for €45 million from Porto a year earlier, "a capital gain was generated due to the transfer of the same player to Real Madrid, which must be taxed in Spanish territory.
