Croatia News - CroatiaPress.com

Zagreb, April 27 (CP) – The details of Dinamo Zagreb’s captain midfielder Luka Modric’s transfer are surfacing with Dinamo to receive €25 mln and Modric to enjoy a € 3 Mln annual pay.

Modric was sold to Tottenham on Friday and is already in the UK where he is undergoing rigorous medical checks.

It is interesting that Dinamo is not obliged to pay any tax for this latest transfer or the earlier ones of Vedran Corluka or Eduardo Da Silva, since Dinamo is structured as an association of citizens and such organisations do not pay taxes. The taxes would only be paid if Dinamo were to use the money to finance something outside football, as is envisaged by the Croatian legislation, as all of the transfers are seen as exports.

Dinamo only pays a 20-percent profit tax on the difference between the earnings and expenditure and if it posts a loss, it is not to pay anything.

Zdravko Mamic, the executive deputy president of the Croatian champion Dinamo has sold a total of five of Dinamo’s prime players for a total of € 58.5 million.

Over the past seven years Mamic and Dinamo have raked in €87 million from transfers of the club’s players abroad. Dinamo also receives some 40 million kuna per annum as donations from the city of Zagreb.