Several of the world’s top tennis players have opted to compete in German tournaments rather than key British events in an effort to minimize their tax liabilities, according to industry sources and recent tournament lineups.

The difference in tax treatment between the two countries has been cited as a significant factor influencing players’ choices ahead of Wimbledon, with Germany imposing flat 15% taxes on prize money, while the United Kingdom subjects winnings to rates as high as 45%. Additionally, British tax authorities apply levies not only on players’ prize money but also on their sponsorship and endorsement earnings connected to their time competing in the UK.

In last week’s Queen’s Club Championships, only one man ranked within the ATP top 10, Australia’s Alex de Minaur, competed, in contrast to six top-10 players participating in Germany’s Halle Open. On the women’s side, three top-10 players appeared at Queen’s, while five chose to play at the Berlin Open and four appeared at the subsequent Bad Homburg Open.

“The UK is more aggressive on this. Clearly for international sportspeople, Germany is a more attractive place to play,” said Robert Salter, director at the accountancy firm Blick Rothenburg. He estimated that the UK’s tax authority, HM Revenue & Customs, could collect upwards of £19 million from Wimbledon prize money this year, based on the tournament’s record £64 million prize fund, marking a 12% increase from 2023.

According to players’ representatives, British events withhold 20% of prize money to cover tax liabilities upfront, while athletes must also submit UK tax returns that may significantly increase their final income tax bills. The total amount owed is prorated based on the proportion of days spent competing in the UK relative to their global schedule. Players are also taxed on earnings from endorsements linked to their UK activity.

Peter Hackleton, partner at Saffery accountancy, noted that the tax regulations disproportionately burden players who spend additional time competing in Britain. He also indicated the issue extends beyond tennis to other sports such as golf, affecting competitors at events like The Open Championship.

A spokesman for the Lawn Tennis Association acknowledged the challenges the UK’s tax regime poses for international players participating for only a short period. The LTA has reportedly lobbied the government for a fairer system, emphasizing the risk that British tournaments could lose out to competing events elsewhere.

Despite ongoing concerns from players and organizers, the UK Treasury has reaffirmed its position, stating prize money and related earnings from sporting events are taxable as expected, including for visiting athletes. At this time, there are no announced plans to amend the current tax framework.