Most are unaware of the astonishing detail in Cristiano Ronaldo’s lucrative Saudi deals: they come with zero taxes.

Cristiano Ronaldo’s move to Saudi Arabia in December 2022 marked a pivotal moment in sports history, transforming one of football’s greatest stars into a figure defined by unprecedented financial success. Leaving behind a tumultuous relationship with Manchester United, Ronaldo embraced a lucrative new chapter with Al Nassr, a deal that not only set records but also raised questions about the implications of accepting money from a controversial regime.

A Career Transition to Saudi Arabia

When Cristiano Ronaldo departed from Europe to join Saudi club Al Nassr in December 2022, it represented a significant shift in his illustrious career. Throughout his nearly two-decade tenure at the pinnacle of football, Ronaldo had consistently commanded record-breaking salaries. While at Manchester United, he held the title of the Premier League’s highest earner, and his eye-popping €94 million transfer to Real Madrid in 2009 shattered sports salary records. By 2018, his earnings exceeded $100 million annually, inclusive of salaries and endorsements—an extraordinary feat for an athlete in his mid-30s.

Yet, by late 2022, tensions with Manchester United escalated, culminating in a public fallout and a controversial interview that led to his contract being terminated shortly before the World Cup. As a result, the five-time Ballon d’Or winner found himself a free agent at age 37.

Most pundits speculated he would either venture to Major League Soccer (MLS) or return to Portugal for a farewell tour. Instead, Al Nassr’s offer stunned the sports world: a contract estimated at an astonishing $535 million over two and a half years, averaging $210 million annually, redefining his earnings and making him the highest-paid athlete globally. Subsequently, in June 2025, Ronaldo signed an even more lucrative two-year extension that adds a minimum of $620 million (potentially escalating to $936 million with bonuses) to remain with the club until mid-2025.

This new deal not only elevates him to billionaire status for the first time but also includes a 15% equity stake in Al Nassr, $5 million allotted for private jet expenses, and a 16-person household staff. Without factoring in bonuses, his earnings during this period are projected to total $1.155 billion, and notably, they are entirely tax-free.

The Tax-Free Advantage

One astonishing aspect of Ronaldo’s contract lies in Saudi Arabia’s absence of personal income tax, meaning that all his income, bonuses, and endorsements are entirely tax-free. Concerns arise regarding whether Portugal, his homeland, would require a share of his earnings. However, since Ronaldo maintains a residence outside Portugal and spends significant time abroad, he is classified as a non-resident for tax purposes. This status exempts him from being taxed on his Al Nassr salary, which is neither paid by a Portuguese employer nor earned in Portugal.

For comparison, consider a fictional American soccer star, whom we’ll name Christopher Ronald, signing a $500 million contract in Saudi Arabia. Unlike Ronaldo, he would face a substantial tax burden, as Uncle Sam would claim his dues. Assuming he resided in a high-tax state like California, his combined federal and state tax obligation could reach approximately $240-$250 million.

Even if Christopher relocated to Saudi Arabia, the United States would still impose taxes based on citizenship, making it one of only two countries globally that does so. Conversely, Ronaldo’s earnings are free from any tax implications, providing a stark contrast between their respective financial outcomes.

Controversy Over Accepting Saudi Money

The decision to accept financial backing from Saudi Arabia has sparked moral debates across various sports. Critics argue that the nation uses high-profile contracts as a means of “sportswashing,” attempting to repair its global image despite a history marred by human rights abuses, including the assassination of journalist Jamal Khashoggi.

In recent months, comedians faced backlash for performing at the Riyadh Comedy Festival, where noteworthy names such as Bill Burr and Dave Chappelle received lucrative payouts. The event drew criticism from organizations like Human Rights Watch, further highlighting the ethical dilemmas surrounding entertainment partnerships with the regime.

Ronaldo has similarly faced scrutiny since arriving in Saudi Arabia; however, many argue that in today’s world, few fortunes are completely clean. This prompts the question: Would one really refuse a significant payday just based on the source? While the morality of accepting such deals remains contentious, Ronaldo’s willingness to engage with Saudi Arabia highlights the allure of financial gain in the sporting world.