When Brazilian striker Neymar made his shock transfer to Paris St Germaine from Barcelona for the record transfer fee of 222 million euros, fans of the French club cheered. The boost to the club, both in performance and standing would be immense. As it turns out, the tax windfall for the state will be significant.
The initial boost will come from taxes for the player’s salary. Neymar will end up paying close to 37 million Euros per year to the state in taxes and social security payments. Also, the massive transfer will also net the state some 100 million Euros in social security payments from the club.
“The minister of public accounts is delighted by the extra tax income Neymar will pay in France if he joins a French club,” the minister in question, Gerald Darmanin, told France Inter radio station.
“It’s better that this footballer pays his tax here instead of elsewhere.”
Neymar is under investigation in Brazil for tax fraud. When asked if Neymar will attempt any subversive methods of avoiding taxes:
“Don’t worry, the country’s interests, and its financial interests, in particular, will be well taken care of.”
According to rumors, all tax payments will come from the club. Neymar does not want to deal with taxes and other potential legal issues. His salary demands are after tax. In that situation, Neymar will get his salary, and the club will foot the bill for his taxes.