Beckham Law with Foreign Company

[mrhit]

Hi,

In recent months, I've become a Spanish Resident, a Spanish company currently employs me, and I've obtained my Beckham Law approval until 2030 (yay!)

Now, I'm in tech and I've got an offer to consult for several companies in Europe/US (not Spain!), however, due to how Beckham Law works, I *cannot* open an autonomo and I don't see a point in opening a company in Spain now.

I've looked into opening a company in Gibraltar (was advised against it, even under Beckham), Cyrpus and BVI (12.5%/ 0% tax), and consult through this company and take divs.

I know my alternative is to use Xolo/Ruul and declare it as "work" and pay 24% tax on it.

Is this legit? I want to be able to work with those companies and not lose my status in Spain. I know i dont need to submit 720 so they would never know my company exists, but.. you know.

(I've search the forum for answers, but most ppl here never actaully got the 149 certificate, they only "thought they might"[not easy as it sounds ]

tnx!

 

[jeffbean]

What do you mean use como/ruul

 

[daniels27]

What do you mean use como/ruul

I think he fthese
https://ruul.io/
https://www.xolo.io/

Not sure what Como is either. Probably the lake and city in Italy.

 

[jeffbean]

For what billing your Cyprus company and so the € comes via that?

 

[Marzio]

a Spanish company currently employs me

If you can work remotely for that company you could move to Marbella, establish a GIB company and commute to GIB only when you will have consulting gigs.

The GIB company will be pay 15% CIT

and you decide if/when to distribute those dividends to yourself in Spain.

You need to collect any kind of proof that when you were working for your GIB company you weren't doing so from Spain.

i dont need to submit 720 so they would never know my company exists

The moment you'll open a bank account for your offshore company, they will know.

 

[daniels27]

move to Marbella

Why not move to La Línea de la Concepción? It is much closer to heaven and airports.

 

[daniels27]

I've looked into opening a company in Gibraltar (was advised against it, even under Beckham), Cyrpus and BVI (12.5%/ 0% tax), and consult through this company and take divs.

How about opening a company with nominees directors and then have his nominees in the office consult while he just gets the dividends?

 

[mrhit]

If you can work remotely for that company you could move to Marbella, establish a GIB company and commute to GIB only when you will have consulting gigs.

The GIB company will be pay 15% CIT

and you decide if/when to distribute those dividends to yourself in Spain.

You need to collect any kind of proof that when you were working for your GIB company you weren't doing so from Spain.



The moment you'll open a bank account for your offshore company, they will know.

I don't care if they know, I have funds, stocks, houses, and bank accounts in my homeland. I paid exit tax on those ofc.
but I have one, and my bank will report (CRS) that I have assets abroad, im not trying to hide anything.

I just trying to see if they can claim this company is Spanish during Beckham, it will not be managed from Spain. In any case, I remain the UBO of the company, but I'm also the UBO of my rented house.

but as long as im under beckham, they shouldn't care. I just own a company, and I could have done so prior to coming to Spain and they wouldn't care.

Currently not planning on moving out my current Spanish location I love it and its my new home for awhile. thanks!

Any reason why I should favor cyprus over BVI?

 

[ilke]

I don't care if they know, I have funds, stocks, houses, and bank accounts in my homeland. I paid exit tax on those ofc.
but I have one, and my bank will report (CRS) that I have assets abroad, im not trying to hide anything.

I just trying to see if they can claim this company is Spanish during Beckham, it will not be managed from Spain. In any case, I remain the UBO of the company, but I'm also the UBO of my rented house.

but as long as im under beckham, they shouldn't care. I just own a company, and I could have done so prior to coming to Spain and they wouldn't care.

Currently not planning on moving out my current Spanish location I love it and its my new home for awhile. thanks!

Any reason why I should favor cyprus over BVI?

Who suggested Cyprus?

If you are going to be setting up a foreign entity then BVI is a better choice

 

[aniglo22]

If you carry out economic activity in Spain through a PE (which in your example it is ), you risk losing your Beckham Law status.
Also, just because you don’t have to file Modelo 720 doesn’t mean they won’t find out.
There are plenty of international and EU frameworks like CRS, TIEAs, DAC, ATAD and MAAC that make info sharing automatic.
Also many popular offshore jurisdictions now have ES rules.
In your case (POEM in Spain, company in BVI), you would not satisfy the ES rules, which means that the information will be shared with Spain.

 

[mrhit]

If you carry out economic activity in Spain through a PE (which in your example it is ), you risk losing your Beckham Law status.
Also, just because you don’t have to file Modelo 720 doesn’t mean they won’t find out.
There are plenty of international and EU frameworks like CRS, TIEAs, DAC, ATAD and MAAC that make info sharing automatic.
Also many popular offshore jurisdictions now have ES rules.
In your case (POEM in Spain, company in BVI), you would not satisfy the ES rules, which means that the information will be shared with Spain.

So basically, am I allowed to hold shares in a company abroad? Am I under the same CFC rules?

If I open a company in BVI, and provide enough substance, make sure all directorial decisions are executed outside Spain.

For all they know I used contractors/employees to generate revenue (which I plan to) and I'm "just" the owner.

I know that in 5 years I will have to report all this structure if it still exists by then.

My accountant recommend me opening a company abroad and mentioned many of his clients under Beckham do it with no issues. But I think it's all good until it stops being good

 

[blizz]

Just a quick question, in so many threads, moving to Spain is strongly discouraged. But now it seems like quite a few of you see it as an advantage if you can move there under the Beckham Law. Has the general view on this changed?

 

[mrhit]

Just a quick question, in so many threads, moving to Spain is strongly discouraged. But now it seems like quite a few of you see it as an advantage if you can move there under the Beckham Law. Has the general view on this changed?

I did not move to Spain because of Beckham Law, I ended up here because we chose to, regardless.

We got Beckham Law after understanding it can saves us lots of money in taxes.and it does. (Around 4k euro a month)

 

[aniglo22]

So basically, am I allowed to hold shares in a company abroad? Am I under the same CFC rules?

If I open a company in BVI, and provide enough substance, make sure all directorial decisions are executed outside Spain.

For all they know I used contractors/employees to generate revenue (which I plan to) and I'm "just" the owner.

I know that in 5 years I will have to report all this structure if it still exists by then.

My accountant recommend me opening a company abroad and mentioned many of his clients under Beckham do it with no issues. But I think it's all good until it stops being good

Where did I mention CFC rules?

 

[Marzio]

Why not move to La Línea de la Concepción?

Because it's one of the shadiest places in Spain

If you carry out economic activity in Spain through a PE (which in your example it is ), you risk losing your Beckham Law status.

Exactly

If I open a company in BVI, and provide enough substance, make sure all directorial decisions are executed outside Spain.

It will probably cost you less to have a GIB company and commute there from time to time to do the work.

 

[Houdini]

I did not move to Spain because of Beckham Law, I ended up here because we chose to, regardless.

We got Beckham Law after understanding it can saves us lots of money in taxes.and it does. (Around 4k euro a month)

for how long have you lived in Spain?

 

[mrhit]

for how long have you lived in Spain?

Officially since last August

So as long as it's not me doing the work, I would not pose issues of a PE in Spain, I did plan to relay my contracts to subcontractors.

I understand that if I do any work, that is defined as "work" it's considered taxable as my Spanish job.

If I own a company and handle business (consulting) abroad, and my company grows and I take dividends, is this work? Why would this company be setting PE in Spain? If it have substance in other jurisdiction?