Beckham Law (Spain) - opportunity or a shitshow?

[yr333]

Let’s discuss so called Beckham law in Spain.

1) Some company (i shouldn’t be a shareholder) may send me to work as an administrator in their rep office in Spain and my income in Spain will be taxed 24% up to 600k

2) For all my foreign income I don’t need to declare and don’t need to pay any tax, neither from employment income (of work done abroad), director’s fees from foreign companies, dividends, etc

3) No wealth tax on foreign assets during this status

4) It lasts first year plus 5 years after that you become a normal resident (or can leave)

I know many people are skeptical about Spanish taxes, but what is wrong with this setup? Isn’t it a nice opportunity to keep all foreign income tax free for at least 5 years?

I can identify that Spain can have questions in theory about CFC for companies I recieve passive income, place of work for employment income..

But if to keep low profile, together for example with active UAE residence / UAE banking, and no need to declare foreign matters - can it work safely?

 

[JohnLocke]

I know many people are skeptical about Spanish taxes, but what is wrong with this setup? Isn’t it a nice opportunity to keep all foreign income tax free for at least 5 years?

Why 5 years if you say first year tax free and next 5 years "become a normal resident" does it mean you still exempted from taxes?

 

[yr333]

Why 5 years if you say first year tax free and next 5 years "become a normal resident" does it mean you still exempted from taxes?

It is written that a special regime is active for the year you enter the country and apply plus 5 years.

To my understanding after that you cannot use this mode and become full tax resident

 

[yr333]

it's a trap

Why?

 

[Cetme308win]

Let’s discuss so called Beckham law in Spain.

1) Some company (i shouldn’t be a shareholder) may send me to work as an administrator in their rep office in Spain and my income in Spain will be taxed 24% up to 600k

2) For all my foreign income I don’t need to declare and don’t need to pay any tax, neither from employment income (of work done abroad), director’s fees from foreign companies, dividends, etc

3) No wealth tax on foreign assets during this status

4) It lasts first year plus 5 years after that you become a normal resident (or can leave)

I know many people are skeptical about Spanish taxes, but what is wrong with this setup? Isn’t it a nice opportunity to keep all foreign income tax free for at least 5 years?

I can identify that Spain can have questions in theory about CFC for companies I recieve passive income, place of work for employment income..

But if to keep low profile, together for example with active UAE residence / UAE banking, and no need to declare foreign matters - can it work safely?

you actually have to disclose your foreign assets

 

[yr333]

you actually have to disclose your foreign assets

I am not sure on this. With this status you don’t need to disclose to what i know (no form 720)

 

[Cetme308win]

I am not sure on this. With this status you don’t need to disclose to what i know (no form 720)

Talk with a lawyer but I'm sure you should.
I'm spaniard and the taxman here is worst than a bunch of mobsters

 

[Martin Everson]

1) Some company (i shouldn’t be a shareholder) may send me to work as an administrator in their rep office in Spain and my income in Spain will be taxed 24% up to 600k

Make sure your not an owner of the company. I think they have a threshold of 24% ownership before law becomes invalid.

I know many people are skeptical about Spanish taxes, but what is wrong with this setup?

Spanish taxman

P.S If WHT is an issue for your offshore income you may want to get professional advice. As you get no access to any DTA's also as your considered a non-resident for tax purposes with Beckham Law.

 

[daeshu]

Hello! First message here for someone under Beckham's Law!

As far as I know:
- No, you don´t have to disclose your foreign assets, no needed the 720.
- No, you are not considered as non-resident for tax purpose. You are a tax resident under a special tax regime.

 

[Martin Everson]

- No, you are not considered as non-resident for tax purpose. You are a tax resident under a special tax regime.

So you are saying under the Beckham law you are not taxed like a non-resident? And you are saying you get access to Spanish DTA's with that tax status?

Show me proof please I am interested.

 

[daeshu]

So you are saying under the Beckham law you are not taxed like a non-resident? And you are saying you get access to Spanish DTA's with that tax status?

Show me proof please I am interested.

Sorry if I didn't explain it right. I didn't say you are not taxed as a non-resident. You are a tax resident, under a special tax regime. That special regime says that for the IRPF you can be treated as a non-resident, that is 24% fixed IRPF. But other taxes... DTA applies to work income from foreign country, it is mentioned in last section here and in section A.1. non-work income will not be taxed in Spain.

 

[Martin Everson]

Sorry if I didn't explain it right. I didn't say you are not taxed as a non-resident. You are a tax resident, under a special tax regime.

Thank you.

P.S The program is short in duration and absolutely pointless. You can get better conditions on a remote worker visa with plenty of tax free options.

 

[saponaire]

What would be alternative options you have in mind?

 

[JohnnyDoe]

I suggest to go to Italy and subscribe to the €100k flat tax if you really like Mediterranean countries. It can be done for 15 years.

 

[saponaire]

What about those that can't benefit from that program?

 

[JohnnyDoe]

What about those that can't benefit from that program?

What about moving to a zero tax country?

 

[saponaire]

Can you give me some examples?