Nov. 6 (Bloomberg) -- Spain’s soccer league will seek talks with the government amid plans to pull a tax break benefiting millionaire foreign players.

The league considered suspending matches in protest, although officials decided negotiation would be better, league President Jose Luis Astiazaran told reporters after a meeting in Madrid.

The tax hike may hamper Real Madrid, the richest club by sales, and European champion Barcelona from luring talent when it comes into force Jan. 1, the start of the mid-season transfer window. Real spent 250 million euros ($371 million) before this season to sign players including Cristiano Ronaldo, Kaka and Xabi Alonso. Although salary agreements reached prior to the new rules won’t be covered by the higher rate, the league will become less attractive to top players, officials said.

“It means a weakening of our league,” compared to the English Premier League, Real general director Jorge Valdano told Punto Radio.

Spain’s ruling Socialist party said Nov. 3 that it plans to ditch the legislation that allows foreigners earning 600,000 euros ($891,000) or more to pay a tax rate of 24 percent instead of the 43 percent for Spaniards.

The tax break was introduced in 2005 to attract foreign executives to Spain.

The removal of the tax break would cost the league about $100 million per year if clubs pick up the bill, Astiazaran told reporters.

The hike isn’t retroactive and won’t affect the likes of Ronaldo and Barcelona’s Zlatan Ibrahmivoic of Sweden who have already moved to Spain, the government said.

To contact the reporter on this story: Alex Duff in Madrid at aduff4@bloomberg.net.

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