Agents, clubs and players: a breakdown of the complicated tax relationship in Spanish football

Intermediaries in football have become one of the most important elements in determining whether a transfer materialises or not. It is they who have the trust of players and club representatives, and hold the key to closing a deal between two parties who more often than not have opposing viewpoints.

This has meant that the remuneration agents receive for the provision of their services has increased exponentially over the years, reaching salaries equivalent to football players themselves and, in some cases, even given intermediaries celebrity status in the sporting world.

As ever, when a certain sector starts to earn a lot of money, taxes start to become a particularly scrutinised element. Depending on how payments to agents are structured, taxes can reduce the net amount to be received by agents by more than half or, if the agent has agreed his commission on a net basis, double the costs involved.

This article examines the various ways this can be achieved and avoided, looking at:

• A working example (player/agent)

• The modern structure (club/agent)

• The view of Spanish tax authorities

• Agent payments treated as player employment income

• An example of the modern structure