It's a demand that might tax many of our homegrown footballers, but from now on foreign players will have to speak proper English.

Until now imported stars have been able to get by with a few phrases such as “I no dive, ref” and “I take the Mercedes, please”. But from the end of this year new signings will have to sit English tests to qualify for a work permit. And so will their wives and girlfriends.

Liam Byrne, a home office minister, set out the new rules while giving evidence to a House of Lords immigration inquiry. He said: “If you take sports-people, should we be insisting that absolutely all footballers or indeed England managers should be able to pass an English test before they come in? At the moment I am afraid our proposal is that they should.”

The new rules, which will apply to only non-EU players, are likely to affect all the big clubs, whose foreign stars will have to prove their proficiency in reading, writing, speaking and listening.

The tests would prove a challenge for many players signed to British clubs, such as the Brazilian striker Alfonso Alves. The £12.7m player barely spoke a word of English when he joined Middlesbrough. Other stars said to have struggled with English include the Brazilians Juliano Belletti, of Chelsea, and Elano Blumer, of Manchester City. The rule would not have applied to England’s Italian manager, Fabio Capello, as he is an EU citizen.

Jacqui Smith, the home secretary, has warned that spouses would also have to have a grasp of the language. “It’s fair that we should now set our expectation that they’re able to speak English before they come here,” she said.

They would have to understand “complex text on both concrete and abstract topics” and converse with natives. Until now they have needed a grasp of English only when seeking permanent residency.

It is the latest blow for foreign footballers, who are also being hit by the Treasury crack-down on “nondom” earners. The government has decided to tax foreign sports stars on money earned in this country at UK rates. While some will be able to claim rebates from their home countries, others fear they will be double-taxed.

A spokeswoman for the Home Office said full details of the language requirements will be published in the spring.

The tax system has also been blamed for Wembley missing out on hosting the 2010 Champions League final. Uefa, the game’s European governing body, said it could not select the new £757m stadium without a Treasury pledge that players from foreign clubs would not be taxed on their match earnings.

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