Carlos Alcaraz’s victory at the US Open against Jannik Sinner allowed him to access the largest purse in tennis history. The Spaniard lifted the trophy and took home five million dollars, around 4.3 million euros at the current exchange rate. The prize money, however, is subject to tax and the Spanish tax authorities will receive a large part of this cheque, although it will also have to go through the US tax authorities first. However, there will be no double taxation and the tennis player will not pay twice for the entire prize.
Carlos Alcaraz is a tax resident in Spain, so he pays his taxes in his home country and is subject to national and regional tax rates. The national IRPF bracket, for income over 300,000 euros, is 24.5 percent. In addition, we must add the regional bracket of Murcia, which amounts to 22.5 percent for amounts over 60,000 euros.
Alcaraz’s taxes after winning the US Open
The brand new US Open champion should pay the Spanish tax authorities 47 per cent of the five million dollars in prize money if the tournament had been held in Spain. That is, a total of 2.35 million dollars in taxes (two million euros). However, this amount will not go entirely to the Spanish coffers, as it must also be paid in the United States, the country where the event was played. According to the Daily Express, the Spaniard will also have to pay taxes in the United States. Specifically, the newspaper specifies that it is 37 per cent of the prize money.
The money Alcaraz will pay in Spain
When Carlos Alcaraz won the Roland Garros, Hacienda applied the double taxation treaty, so that the Spaniard did not have to pay taxes twice, in France and in Spain. In this case, the tax authorities, as explained by the technicians, taxed the tennis player on the remaining prize money after paying the tax burden paid in France. Then, in June, Gestha, the union of tax technicians, indicated in a statement that Alcaraz had to pay approximately 40.8 percent of the prize money after reducing expenses and other deductions.
Carlos Alcaraz’s stellar level
In total, this season, according to ATP figures, 22-year-old Carlos Alcaraz has won a total of more than $13 million in gross prize money. He is the highest earning tennis player this year. Meanwhile, Jannik Sinner took home $2.5 million for being a finalist at the US Open.
Carlos Alcaraz‘s figures are stratospheric, in line with the enormous performance of the tennis player. “From the early rounds to the end, it’s been the best tournament I’ve played in my life. The consistency of my level throughout the championship has been very, very high. I’m very proud, because it’s something I’ve been working on: to be really consistent,” he explained after beating Italian Jannik Sinner in the US Open final.
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