Rafael Nadal denies that he and his father owe taxes on income garnered from two of their companies that were based in the Spanish tax haven of Guipuzcoa.
"The companies mentioned and the tennis player himself are up to date with the payment of all their tax obligations," Nadal's agent, Carlos Costa, said in a statement. "Since the start of his career Rafa has always wanted to maintain his residence in Spain and that's the way it has been, reaffirming his commitment as a Spaniard on, as well as off, the court."
In an article primeran.com, the economist Sabin Arizmendiarrieta alleges that Sebastian Nadal and his son set up promotional companies in Guipuzcoa, which is located in Spain's northern Basque region to take advantage of special tax rules, designed to help local firms flourish. The story also alleges that the lax rules helped the Nadals not have to play taxes on earnings of between $7 and 19 million euros from 2006 to 2010. Regional authorities are said to be investigating the matter. The Nadals have moved the businesses back to their native Mallorca.