There is still a great deal of controversy surrounding the taxation of these figures in the bullfighting world, such as matadors, novilleros, and others involved in this type of bullfighting spectacle.
While it is true that the employment relationship for this category of individuals is defined in Royal Decree 1435/1985, dated August 1, which regulates the special employment relationship of artists in public performances, – Official State Gazette of August 14, 1985, the specific challenges they face can be summarized briefly in this article.
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- If the bullfighter and his entire team are hired by a third party (the organizer of the bullfighting event, without the bullfighter assuming the risk and liability of the event or the management of the event’s human and material resources), then said matador and all members of his team shall be employed under a special employment relationship, as defined in Article 2.1.e) of
Under the Workers’ Statute—that is, for bullfighters and, similarly, for novice bullfighters, etc.—Article 17.2 of the Personal Income Tax Law (LIRPF) shall apply, which includes as employment income compensation derived from special employment relationships. At the same time, the withholding tax established for such contracts and defined in Article 80 of the Personal Income Tax Regulations will apply to these contracts, which entails applying Article 82 of the Personal Income Tax Regulations (RIRPF) (since this involves the special employment relationship of performers in public entertainment, a minimum withholding rate of 15 percent is set, as established in paragraph 2 of Article 86 of the RIRPF).
- If the bullfighter acts as a business owner or professional—that is, when the crew leader or matador independently manages the means of production and human resources at their disposal (even if they do not assume the risks and uncertainties of the business)— their income shall be classified as income from economic activities (if the bullfighters, novice bullfighters, and rejoneadores hire their own crew and assume the status of employer with respect to the crew members—with all the consequences that arise from any employment relationship)— and for the purpose of participating in a public performance, self-employment is presumed to exist, and therefore the income is classified as derived from an economic activity.
This means, therefore, that the bullfighter is considered a self-employed business owner; consequently, the income earned is no longer classified as “employment income,” and he may deduct all necessary expenses related to his activity. It should be noted that activities related to bullfighting events (including bullfighters and rejoneadores, among others) are classified under Group 05 of Section Three of the IAE Rates.
Therefore, this will be considered income from professional activities and will be subject to withholding tax (currently 15%). This means that if you are acting in a business capacity, you must issue an invoice to the event organizer with the withholding tax deducted, which the organizer is then required to remit. Your taxation will be governed by the Direct Assessment system (income tax is calculated based on the difference between income and expenses). As part of your obligation to maintain official records of income and expenses, you may deduct expenses related to your business activity that are directly attributable to your income, as well as depreciation and other expenses inherent to your business.
With regard to hired personnel, it is clear that in this scenario—where the bullfighter is considered the employer or is the crew leader—he or she will be the one to hire the personnel participating in the show as part of the exercise of his or her economic activity, and this will be treated in the same manner as specified in point 1, under which such hired personnel will be subject to the special labor regime for performers in public shows and must comply with those regulations, except for relationships with technical and auxiliary staff, which will follow the general employment regime. Furthermore, these hiring expenses (salaries, Social Security, etc.) will be deductible from their income.
Having distinguished the two most important aspects of taxation depending on the capacity in which bullfighters and personnel associated with this type of spectacle operate, various situations may arise, such as when these professionals operate through corporations in which they are partners. In such cases, the tax treatment is different and may be more advantageous, which requires more complex tax planning—an area in which our firm can provide guidance.
