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A Spanish court has sentenced Brazil’s national football coach and former Real Madrid manager, Carlo Ancelotti, to a one-year prison term for committing tax fraud related to his image rights income during his tenure at the Spanish football club in 2014.
The Madrid court confirmed that Ancelotti failed to declare earnings derived from image rights, violating Spain’s personal income tax laws. Prosecutors had accused him of concealing over €1 million in taxable income by routing funds through offshore entities.
According to court documents, the case specifically focused on fiscal year 2014, during which Ancelotti allegedly failed to disclose earnings linked to commercial endorsements and licensing of his image.
No Imprisonment Likely Due to Spanish Sentencing Rules
Under Spanish law, non-violent first-time offenders with sentences under two years generally avoid serving prison time. In such cases, sentences are typically suspended, provided that the offender has no prior criminal record and meets certain conditions.
Legal experts note that while Ancelotti is unlikely to face incarceration, the conviction could still impact his future dealings in Spain and with Spanish tax authorities. Additionally, fines and full repayment of the unpaid taxes, along with interest and penalties, are expected.
Ongoing Scrutiny of High-Profile Tax Cases in Spain
Spain has a well-documented history of prosecuting high-profile athletes and celebrities over tax matters, particularly in relation to image rights and offshore arrangements. Notable cases in recent years have involved football stars such as Lionel Messi, Cristiano Ronaldo, and Neymar.
Tax specialists emphasize that such cases serve as a reminder of the growing scrutiny on image rights agreements, which are often used to separate commercial income from salary earnings for tax optimization.
This ruling reinforces the importance of rigorous compliance with Spain’s tax rules on foreign income, image rights, and licensing revenues. Tax professionals advising athletes, celebrities, and expatriates are urged to review structures involving intellectual property, especially in jurisdictions with heightened enforcement.
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