General info on Tax optimization

[Hello]

Hi everyone,

I'm starting to taking growing my capital more seriously and thinking meanwhile about to move to some EU country (looking at Spain) using Digital Nomad visa (earning from abroad), or the US.

I know that taxes are quite high in the EU, but also you can optimize it writing off your spendings as business spending, but that's all I know. It seems studying further will require diving into specific country tax intricacies. Mainly I want to get max 10-20% off maybe.

Could you give a general direction?

Or specifically, I'm interested in:

- How sophisticated is it to write off spending as business spendings, how many areas it can encompass? I suspect in Germany/USA it would be harder as they might watch you closely, or, say, in Spain they would close eyes, but maybe i'm wrong.

- Is there something else i can consider? I read it seems you can get an offshore company (on your name?), earn money on it and then just leave your country for half a year to loose tax residency and during that time transfer the money on your bank account without paying taxes. Is it too good to be true?

I appreciate any thought, thanks.

 

[JohnLocke]

or, say, in Spain they would close eyes, but maybe i'm wrong.

You need to search the forum for this, if you can't find something with the SEARCH bar top right you may do a google search like:

site:offshorecorptalk.com spain tax
site:offshorecorptalk.com relocate spain

You will see it is not the place you want to relocate to!

In addition as discussed also a lot of times, Bulgaria, Portugal and Switzerland are some of the good destinations.

But there may be more opinions from other users.

 

[Roo]

in Spain they would close eyes, but maybe i'm wrong.

In Spain they want more documents to write off a business lunch than than you need to incorporate a company in some countries

I really suggest avoiding opening a company in Spain, it's a bureaucracy hell, accountants are often incompetent when it comes to international taxation or international anything especially outside of the EU and they will no make an effort to get information for you.

Flying under the radar with an offshore company as a non-resident may work for a while, I guess it depends on your situation and how you may or may not attract tax authorities attention.
Any transfer to a bank account in Spain over 3000euros will be automatically reported to the hacienda so take care. That threshold might have already decreased since they need money to pay for illegal migrants and other pointless stuff

 

[yourbestchoice]

In addition as discussed also a lot of times, Bulgaria, Portugal and Switzerland are some of the good destinations.

But there may be more opinions from other users.

Portugal is still a good option after they abolished the NHR? Or are you referring yourself to lax enforcement?

 

[justlavra]

If you're a digital nomad, Spain can be a great place to live and work.

By obtaining a digital nomad visa as an employee and applying for the Beckham regime, you can enjoy a declared salary with a tax rate of 24%. Moreover, any income earned outside of Spain during the next five years is tax-free.

This is especially beneficial when you have a foreign company, as you can receive dividends without any taxation and only pay taxes on the declared salary.

For instance, if your declared salary is 3000 EUR per month, you will have to pay approximately 8000 EUR per year for taxes, and that's it.

You won't have to pay any taxes in Spain on the dividends, whether they are 50k or 250k.

 

[koohl]

Wat's required to obtaining the digital nomad visa in Spain?

 

[Hello]

Wat's required to obtaining the digital nomad visa in Spain?

https://www.exteriores.gob.es/Consu...ares/Paginas/Consular/Digital-Nomad-Visa.aspx

 

[baio12]

Bulgaria, Portugal and Switzerland

I know some advantages about Bulgaria and Switzerland but what are main reasons people choose Portugal today?

 

[daeshu]

If you're a digital nomad, Spain can be a great place to live and work.

By obtaining a digital nomad visa as an employee and applying for the Beckham regime, you can enjoy a declared salary with a tax rate of 24%. Moreover, any income earned outside of Spain during the next five years is tax-free.

This is especially beneficial when you have a foreign company, as you can receive dividends without any taxation and only pay taxes on the declared salary.

For instance, if your declared salary is 3000 EUR per month, you will have to pay approximately 8000 EUR per year for taxes, and that's it.

You won't have to pay any taxes in Spain on the dividends, whether they are 50k or 250k.

I’m nearing the end of my 5+1 years under the Beckham regime in Spain and checking out next steps regarding my capital gains. I currently hold stock in a Netherlands-registered broker, where I understand the capital gains tax for non-residents is 10%. However, I’m considering moving my stock to a UK broker, where the capital gains tax for non-residents is reportedly 0%.

I’ve spoken to a few tax advisors, but I haven’t felt confident about their ability to assist or their fees to get more answers. If you can have experience with this process or can offer any insights, I would appreciate the help. Thanks!





Thanks in advance!

 

[aniglo22]

I’m nearing the end of my 5+1 years under the Beckham regime in Spain and checking out next steps regarding my capital gains. I currently hold stock in a Netherlands-registered broker, where I understand the capital gains tax for non-residents is 10%. However, I’m considering moving my stock to a UK broker, where the capital gains tax for non-residents is reportedly 0%.

I’ve spoken to a few tax advisors, but I haven’t felt confident about their ability to assist or their fees to get more answers. If you can have experience with this process or can offer any insights, I would appreciate the help. Thanks!





Thanks in advance!

Are you confusing something ?
Moving the stocks to an other broker located in a different country won't reduce your capital gains tax .
Capital gains tax is based on your tax residency and not where your broker is located . Withholding tax can differ where your fonds are domiciled or the underlying assets are sourced from .

 

[daeshu]

Are you confusing something ?
Moving the stocks to an other broker located in a different country won't reduce your capital gains tax .
Capital gains tax is based on your tax residency and not where your broker is located . Withholding tax can differ where your fonds are domiciled or the underlying assets are sourced from .

I apologise as perhaps I explained it in a rush. Being under Beckham's Law, capital gains outside Spain are not paid in Spain, they are paid in the country where the broker is registered. At least that is my understanding. So moving to another broker in another country could reduce capital gains tax. Although the assessors I am talking to are Spanish ones, so they can confirm only the theory in the Spain side, they are not 100% sure of the Netherlands/UK side.
If you have a different opinion on this, I would be more than happy to hear it! thanks!

 

[aniglo22]

I apologise as perhaps I explained it in a rush. Being under Beckham's Law, capital gains outside Spain are not paid in Spain, they are paid in the country where the broker is registered. At least that is my understanding. So moving to another broker in another country could reduce capital gains tax. Although the assessors I am talking to are Spanish ones, so they can confirm only the theory in the Spain side, they are not 100% sure of the Netherlands/UK side.
If you have a different opinion on this, I would be more than happy to hear it! thanks!

You are probably confusing withholding taxes with capital gains taxes .

1. You won't be paying capital gains tax if the funds are not Spanish-sourced.
2. The broker platform's location doesn't matter.
3. Where the funds are domiciled or sourced from matters.
4. You will be subject to withholding taxes depending on where the funds are domiciled and their underlying assets, only regarding dividends (withholding tax on stocks and funds is generally not applied ) .
5. It’s important to note that you can't claim relief under double taxation treaties because of the Beckham regime.

Examples:

• Sale of ETF domiciled in Spain => capital gains tax
• Sale of ETF domiciled in Ireland => no capital gains tax
• Dividends from ETF domiciled in Ireland => no withholding tax directly (the ETF itself may pay withholding taxes on dividends from its underlying holdings)
• Stocks from the UK => no capital gains tax
• Dividends from the UK => 15% withholding tax

 

[daeshu]

1. You won't be paying capital gains tax if the funds are not Spanish-sourced.
2. The broker platform's location doesn't matter.
3. Where the funds are domiciled or sourced from matters.
4. You will be subject to withholding taxes depending on where the funds are domiciled and their underlying assets, only regarding dividends (withholding tax on stocks and funds is generally not applied ) .
5. It’s important to note that you can't claim relief under double taxation treaties because of the Beckham regime.

Examples:

• Sale of ETF domiciled in Spain => capital gains tax
• Sale of ETF domiciled in Ireland => no capital gains tax
• Dividends from ETF domiciled in Ireland => no withholding tax directly (the ETF itself may pay withholding taxes on dividends from its underlying holdings)
• Stocks from the UK => no capital gains tax
• Dividends from the UK => 15% withholding tax

Thanks for your quick response! I really appreciate your perspective, especially as it challenges some of the other information I’ve received.

Do you know of any real-life cases of people under the Beckham Law handling their capital gains this way?

If I understand correctly, if I hold stocks from multiple countries (e.g. US, UK, Germany, and Sweden) with a broker registered in the Netherlands (which, as you said, doesn’t impact the tax treatment), I would pay capital gains tax in each of those countries based on their local non-resident tax rates. This sounds a bit complex, in case it implies filling tax document in many countries (I guess only if the tax is higher than 0%).

Just to clarify, I’m focused solely on capital gains from stocks (not ETFs), as I plan to sell my stocks with gains before the end of 2025, and I want to ensure I handle the taxes correctly.

 

[aniglo22]

Thanks for your quick response! I really appreciate your perspective, especially as it challenges some of the other information I’ve received.

Do you know of any real-life cases of people under the Beckham Law handling their capital gains this way?

If I understand correctly, if I hold stocks from multiple countries (e.g. US, UK, Germany, and Sweden) with a broker registered in the Netherlands (which, as you said, doesn’t impact the tax treatment), I would pay capital gains tax in each of those countries based on their local non-resident tax rates. This sounds a bit complex, in case it implies filling tax document in many countries (I guess only if the tax is higher than 0%).

Just to clarify, I’m focused solely on capital gains from stocks (not ETFs), as I plan to sell my stocks with gains before the end of 2025, and I want to ensure I handle the taxes correctly.

You pay capital gains tax on residency . There are generally no withholding taxes for non residents on capital gains ( stocks ) . You would be paying no taxes on sale as long it's not spanish sourced.
These non-resident tax rates you mentioned mostly apply only on real estate .

 

[daeshu]

You pay capital gains tax on residency . There are generally no withholding taxes for non residents on capital gains ( stocks ) . You would be paying no taxes on sale as long it's not spanish sourced.
These non-resident tax rates you mentioned mostly apply only on real estate .

Ok, so I just need to sell those stock, and Spain or wherever the stock is domiciled cannot claim later any capital gain tax.

I see that few countries have CGT for non-residents, e.g. France 30%, but I don't have anything from France.

This seems like a huge advantage for Beckham's Law, why is this not so famous ? I mean, when you read about this regime, usually there is no mention to this, that you can sell stock in general with 0% CGT.

 

[aniglo22]

Ok, so I just need to sell those stock, and Spain or wherever the stock is domiciled cannot claim later any capital gain tax.

I see that few countries have CGT for non-residents, e.g. France 30%, but I don't have anything from France.

This seems like a huge advantage for Beckham's Law, why is this not so famous ? I mean, when you read about this regime, usually there is no mention to this, that you can sell stock in general with 0% CGT.

Yes there are some exemptions like spain and france , that's why I said generally .

This seems like a huge advantage for Beckham's Law, why is this not so famous ? I mean, when you read about this regime, usually there is no mention to this, that you can sell stock in general with 0% CGT.

Yeah but most of your income would be Spain sourced so you would pay the 24% before you can invest .
Multiple countries have the same treatment regarding foreign capital gains and income (e.g countries with non-dom regimes and territorial tax countries )

 

[daeshu]

For me it is a great, I am Spanish, lived abroad for more than 10 years, saved some money, invested in some stock. Moved back to Spain under Beckham's regime. And now that that period is finishing I can sell all the stock with gains at 0% tax. If I sold them in 2025 I would pay in Spain CGT around 21-27%
If I can pay 0% CGT and don't have to fill in any paperwork in any country, it seems too easy!

 

[aniglo22]

For me it is a great, I am Spanish, lived abroad for more than 10 years, saved some money, invested in some stock. Moved back to Spain under Beckham's regime. And now that that period is finishing I can sell all the stock with gains at 0% tax. If I sold them in 2025 I would pay in Spain CGT around 21-27%
If I can pay 0% CGT and don't have to fill in any paperwork in any country, it seems too easy!

Yeah but you remain in the EU and it's only nice under 600k EUR .
What I would recommend you is to look into Latin America and the Caribbeans , if you look for options when your Beckham regime ends . A lot of great options over there .

 

[daeshu]

Yeah but you remain in the EU and it's only nice under 600k EUR .
What I would recommend you is to look into Latin America and the Caribbeans , if you look for options when your Beckham regime ends . A lot of great options over there .

The 600k limit is just for the 24% fix on IRPF (personal income tax in Spain), right ? not to the capital gain tax.
I know there are great options outside Europe, lot of info in offshorecorptalk
but for now I am happily settled down in Spain!

 

[aniglo22]

The 600k limit is just for the 24% fix on IRPF (personal income tax in Spain), right ? not to the capital gain tax.
I know there are great options outside Europe, lot of info in offshorecorptalk
but for now I am happily settled down in Spain!

Yes the limit is for Spanish sourced income only .