Jorge Lorenzo avoids €11 million fine in Spanish tax case win

Jorge Lorenzo has won his case against Spanish tax authorities which, had he lost, would have cost him more than €10 million.

The Regional Administrative Economic Court of Catalonia ruled in Lorenzo’s favour in a tax dispute between the five-times Grand Prix World Champion and the Spanish tax authority with regards to his personal income in 2016, Crash.net reports.

The Court ruled that the tax authorities were unable to prove Lorenzo’s residence was in Spain during 2016. In that period, Lorenzo says he was living in Switzerland. The authorities argued that there were four MotoGP races in Spain in 2016, but none in Switzerland, while Lorenzo responded that the MotoGP calendar was not in his control. Further, the Court decided that the authorities could not prove that Lorenzo was in Spain for more than 168 days in 2016, which is below the 183-day minimum to be required to pay tax in the country.

In a similar situation in 2021, Lorenzo was pursued by tax authorities for €35 million over allegations relating to the period of 2013-2015, but again Lorenzo’s residence was in Switzerland during this time. 

This most recent case saw Lorenzo faced with the possibility of paying more than €11 million (£9.7 million), split between a €7.8 million penalty for his 2016 income and an additional €3.6 million penalty.

Lorenzo, a five-time World Champion (2x 250cc, 3x MotoGP), is now the second Grand Prix World Champion from Spain to have won in court against Spanish tax authorities, after 1988 and 1989 250cc World Champion and Moto2 team owner Sito Pons was acquitted in his case earlier this week, escaping a 24-year prison sentence in addition to a €12 million fine.

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