Spain: Is Beckham Law a Tax Trap?

[Martin Everson]

Spain has become 'tax trap' for British expats 'fleeced' by authorities​

https://www.express.co.uk/news/world/2021244/spain-has-become-tax-trap

---- quote start

Spain has become a “tax trap” for Britons who are being “fleeced” by the authorities, a law firm has warned. Scores of foreign residents who moved to the sun-kissed country are allegedly facing “punitive tax claims”.

International lawyer Robert Amsterdam has launched the “Spanish Tax Pickpockets” campaign which has taken large advertisements in some of the world’s leading newspapers.

He says his firm has been “inundated” with people who are “facing ruin”.

The country was a magnet for affluent foreigners due to the so-called “Beckham Law” – named after David Beckham who played for Real Madrid from 2003 to 2007 – which allowed ex-pats to be taxed at 24% on the first €600,000 of their Spanish-sourced income.

Mr Amsterdam claims that individuals who benefited from the initial scheme have faced “relentless tax probes” and been told they cannot appeal tax demands unless they first pay the amount they are said to owe.

---- quote end

Is this Daily Express BS or is Spain living up to its reputation as a tax hell? Can they just repeal your Beckham law status?

P.S In any case as I always say stay the hell away from Spain residency

 

[manukahoney]

Yes and no.
Yes, the Hacienda is notorious and I would say second in the world after IRS when it comes to tax extortion. They don't care who you are, they are not afraid of making things public, they do in fact force you to pay first, sue later and Spanish lawsuits take ages, are costly and more often are won by the state sharks.
However it's fair to say that Beckham Law was in fact abused by multiple applicants who set up fake or questionable employment to obtain the status. I know some "helpers" who were actively promoting these schemes and advertising them as a "tax-free Spanish lifestyle".

Spain is a great place to live if you actually pay taxes elsewhere (Germany for example) and the countries have a DTA in place. For others - look elsewhere and visit as a tourist.

 

[goats]

Yes and no.
Yes, the Hacienda is notorious and I would say second in the world after IRS when it comes to tax extortion. They don't care who you are, they are not afraid of making things public, they do in fact force you to pay first, sue later and Spanish lawsuits take ages, are costly and more often are won by the state sharks.
However it's fair to say that Beckham Law was in fact abused by multiple applicants who set up fake or questionable employment to obtain the status. I know some "helpers" who were actively promoting these schemes and advertising them as a "tax-free Spanish lifestyle".

Spain is a great place to live if you actually pay taxes elsewhere (Germany for example) and the countries have a DTA in place. For others - look elsewhere and visit as a tourist.

Can you share more on your last paragraph? I have swiss passport, tax residency in NL (business as well), looking to live in spain and pay taxes elsewhere. Together with my partner (dutch passport & residency). Kid might come at some point.

 

[marioIT]

I totally forgot about this thread.
I was just sent this same whitepaper:

https://spanishtaxpickpockets.com/

It was sent to me a while ago. 100+ pages. I like that it starts with:

We dedicate this paper to all the victims of Agencia Estatal de Administración Tributaria, the Spanish Tax Authority.
Our focus in the pages that follow is on a particular group of victims - nationals of other Member States of the EU and elsewhere - who
thought that the Spanish government wanted them to put their experience and expertise to work in Spain and are now being pursued relentlessly for
taxes they were promised would not be levied.
But we are mindful that these are not the only victims of the Spanish tax system.
Many Spanish citizens are victims too, they and their businesses trapped in a web that is sticky with a mistaken presumption of Hacienda’s veracity, which leaves them completely at the mercy of the tax authority.

I find it interesting, but honestly I can say that other EU countries like Italy and Germany are VERY similar in concept and tactics used by tax agencies...
"Last-minute audits, Fishing expeditions, Pressure on taxpayers, Non-responses to requests for clarification, Reputation damage, Threats of criminal proceedings, etc"

also I've heard multiple cases where the tax agency gave the initial OK for the beckham law status, giving the certificate, and then they challenged ALL the following years... and once they challenge the beckham law status they try to grab your worldwide earnings at full income tax rates
I recommend to give it a read if you're serious about moving there. Maybe it's statistically exaggerated but as far as I am recently hearing, very true!

 

[Martin Everson]

I wish everyone well that has money and decides to move to that tax gulag called Spain.

Even the EU had enough of Spain's Hacienda and had to take Spain to court over unfair taxation and penalties multiple times....lol.

European Commission refers Spain to the EU Court of Justice due to discriminatory tax treatment of non-resident taxpayers​

https://www.legalpost.eu/2025/03/european-commission-refers-spain-to-eu.html

Commission refers Spain to the Court for imposing disproportionate sanctions for failure to report assets held abroad​

https://ec.europa.eu/commission/presscorner/detail/en/ip_19_2774


P.S Every time I read a thread about someone with money wanting to make use of the Beckham law and move to Spain I just shake my head. You can't help everyone with money see sense sadly .

 

[Alonzo]

I wish everyone well that has money and decides to move to that tax gulag called Spain.

Even the EU had enough of Spain's Hacienda and had to take Spain to court over unfair taxation and penalties multiple times....lol.

European Commission refers Spain to the EU Court of Justice due to discriminatory tax treatment of non-resident taxpayers​

https://www.legalpost.eu/2025/03/european-commission-refers-spain-to-eu.html

Commission refers Spain to the Court for imposing disproportionate sanctions for failure to report assets held abroad​

https://ec.europa.eu/commission/presscorner/detail/en/ip_19_2774


P.S Every time I read a thread about someone with money wanting to make use of the Beckham law and move to Spain I just shake my head. You can't help everyone with money see sense sadly .

I’m afraid Hacienda will get away with it by paying fines. Portugal had (and still has) a super atrocious car tax on used ones and was fined by EU yearly for "immoral confiscatory taxation" yet Portugal still makes decent profit after paying those fines…