Spanish authorities are reportedly conducting an investigation into the hair transplant clinics co-owned by Cristiano Ronaldo in Spain due to tax-related issues.
The renowned Al-Nassr and Portugal football star, Ronaldo, who earns a staggering £173 million annually, has an estimated net worth of $500 million according to Forbes in 2023. However, Spanish outlet Sport suggests that Ronaldo might be facing legal troubles. The 38-year-old has ownership interests in several Insparya Medical Clinic hair transplant clinics, which are now under scrutiny by Spain’s Tax Agency.
The investigation centers around the allegation that these clinics issued numerous invoices to hundreds of clients between 2019 and 2021 without including Value Added Tax (VAT). In their defense, the clinics argue that alopecia is a medical condition, and as such, their services for diagnosis, prevention, treatment, and cure should be exempt from VAT.
Conversely, the Spanish Treasury contends that these hair transplants are primarily undertaken for aesthetic purposes, necessitating VAT inclusion, which currently stands at 21 percent in Spain. Tax investigators have delved into bank records, cash transactions, and an anonymous list of payments.
The investigation was initiated in February 2022, with the formal proceedings commencing in May 2023. The clinics have engaged legal representation and maintain that they have adhered to all legal requirements and regulations.
The report also suggests that investigators are attempting to underscore the purely aesthetic nature of these treatments. Consequently, they have visited the company’s offices in Madrid to review photographs taken of clients at various stages of their hair transplants. The Tax Agency has also requested that the company substantiate deductions related to expenses such as hotels, meals, trips, and invoices without VAT.
In response, Insparya presented a report from the World Health Organization and the opinion of a dermatology specialist. They argue that alopecia qualifies as a medical condition, and hair transplants should be considered necessary medical treatments, justifying their exemption from VAT. The report states that while the treatment of alopecia does lead to aesthetic improvements in many patients, its primary objective remains medical, similar to providing a prosthesis to a patient who has lost a limb.
