Bayern’s tax hope for Martinez?

Whilst Bayern Munich admit that they see Javi Martinez’s transfer as increasingly unlikely, reports suggest they could reach a breakthrough today.

Marca understand that the Bavarians are in talks with the Spanish Football League to try to work out a solution to their stalled bid for the Athletic Bilbao midfielder.

It is understood that the Germans’ belief that they would have to pay VAT of about €6m on the transfer means they are trying to convince Athletic to accept a bid of €35m, rather than the €40m needed to activate his release clause.

However, Marca are reporting that Bayern will be informed that they do not have to pay tax on the transfer, because it is meeting a release clause.

They suggest that Ronaldo’s 2002 transfer from Inter to Real Madrid saw the LFP first agree a ruling with the Hacienda – Spanish tax office – that fees paid to meet release clauses were exempt from VAT and since then, apparently no VAT has been paid on transfers meeting release clauses.

If the player and the club together seek to pay the €40m release clause then similarly income tax will not be due either.

However, if this route were to be taken, due to Martinez’s contract having been signed only last year, Athletic are threatening to report him to FIFA under Article 17 for illegally breaking his contract.

Tags Bayern Javi Martinez