The latest edition of France Football magazine, focusing on “star salaries,” has shed light on the tax arrangements of footballers in Monaco, particularly revealing details about Radamel Falcao’s earnings.
Falcao’s salary, reported at a staggering €14 million per year, is notable not only for its size but also for the tax benefits it enjoys in the Principality. According to the magazine, Falcao does not pay income tax in Monaco; instead, his only contribution is towards his retirement fund. This deduction, calculated at a rate of 6.55% on his annual salary, is capped at €53,700. In practical terms, this amounts to just €3,517 per year, representing a minuscule fraction (0.0003%) of his total earnings.
These revelations contrast starkly with the tax obligations faced by players in other jurisdictions. For instance, Zlatan Ibrahimovic, with an estimated salary of €18 million, reportedly pays around €7 million in taxes to the French state, as estimated by the FTPA firm. This stark contrast underscores why clubs like Paris Saint-Germain (PSG) have expressed grievances over the financial advantage enjoyed by Monaco in the French league, especially given the significant sum of €50 million paid by Monaco to participate in the league.
