Has anyone made Beckham Law work?

[Barney2201]

Doing a bit of research on Backham Law and it seems a bit of a mindfield.... Has anyone made it work for them?

From what I can see you need to do the following:

- If owning a UK Ltd then set up a brach office in Spain
- Move to Spain as a Director of Branch office but not holding more than 25% of shares
- Pay yourself a modest salary for running Spanish Branch office
- Have seperate offshore company not on Spanish Blacklist (maybe US LLC) and invoice most profit from UK co to offshore company
- Pay dividend to yourself living in Spain from offshire company with no tax as money is made outside of Spain

Does the above work or is it even harder to make it a resonable low tax location?

 

[Martin Everson]

- Have seperate offshore company not on Spanish Blacklist (maybe US LLC) and invoice most profit from UK co to offshore company

So you want to have a CFC in Spain and do some profit shifting (BEPS)? You will be on first name terms with Spanish taxman I think. The program is short in duration so can't be used for any sort of real tax planning unless you are a short term worker or football player .

I think one guy is using Beckham Law see threads below.

https://www.offshorecorptalk.com/th...tax-on-foreign-stock-gains.33989/#post-177528
https://www.offshorecorptalk.com/th...-opportunity-or-a-shitshow.33687/#post-177521

 

[uplana]

Second time I read about this so called "law" it was also explained well in another thread, anyway I don't believe a single second to work.

 

[Barney2201]

it seems similar to Portuguese NHR in that the most beneficial use of the scheme is to receive foreign income tax free, but just like NHR the income source must not come from a black list country.

in addition there’s a bunch of other hoops to jump through such as establishing local office and not owning more than 25% of the company...