- In addition to his football career, Cristiano Ronaldo has a large business empire
- However, the hair transplant clinics he co-owns are under VAT investigations
- Big debates are ongoing about Man United, Chelsea and Arsenal It’s the All Kicking Off podcast
The hair transplant clinics co-owned by Cristiano Ronaldo are reportedly being investigated by authorities over tax issues.
Al-Nassr and Portugal star Ronaldo – who earns a whopping £173million a year – has diversified his income by investing in various business interests throughout his career.
Forbes estimated his net worth at $500 million (£409 million) in 2023, according to a Spanish media outlet SportsRonaldo could be in trouble.
The 38-year-old owns several Insparya Medical Clinic hair transplant clinics, but these are under investigation by the tax authority in Spain.
The report claims that they opened a lawsuit against the hair transplant clinics after issuing multiple VAT-free invoices to hundreds of customers between 2019 and 2021.
The hair transplant clinics co-owned by Cristiano Ronaldo are reportedly being investigated
Ronaldo is co-owner of several of these clinics, but has not charged VAT to several customers
The company claims in its defense that alopecia is “a disease” and therefore “medical services for diagnosis, prevention, treatment and cure” are exempt from VAT.
However, the Ministry of Finance in Spain has reportedly claimed that transplants are instead for “purely aesthetic purposes” and therefore their prices must include VAT, which is currently 21 percent in Spain.
Tax investigators viewed bank statements, cash payments and an anonymized payment statement.
The investigation file was opened in February 2022 and the hearing process began in May 2023.
The clinics have handed over responsibility for the process to lawyers but insist they have complied with all laws and regulations.
The report addresses the claim that investigators sought to emphasize that these treatments were for “purely aesthetic” purposes.
They then showed up at the company’s offices in Madrid to examine photos taken of customers at various stages of the transplant.
Ronaldo’s company claims it offers a medical service and is exempt from VAT
The tax office also asked the company to substantiate various deducted expenses related to hotels, meals and travel, as well as invoices excluding VAT.
However, in response, Insparya presented a report from the World Health Organization and the opinion of a doctor specializing in dermatology.
In it, they insisted that alopecia is a disease and a transplant is a necessary “medical treatment,” thereby justifying the non-imposition of VAT.
The report states: “There is no question that the treatment of alopecia disease results in aesthetic improvement in a large proportion of patients who undergo this treatment, but the aim of this treatment is not only aesthetic but also medical in nature, e.g. such as the insertion of a prosthesis into a patient who has lost a limb.