Refusal of 70-90% Income Exclusive in Italy, What Netx?
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Just spoke to 2 lawyers in spain, they are refusing to allow me to use gibralter company for beckham law, they are saying it doesnt go well with spanish tax residency. Apparently the lawyer I spoke also told me some of his clients under beckham law were audited and did something they were not supposed to. So basically, I am looking to find a structure that can benefit from beckham law whilst living in spain without trigerring any tax liability in spain.
One of the lawyers suggested to have a holding company inside spain which would hold all the interests outside spain, I could take︀ out the money as dividends from that company without attracting any tax liability due to︁ participation exemption.
any inputs or knowledge regarding beckham law and structure that works for beckham︂ law will be highly appreciated. thanks
One of the lawyers suggested to have a holding company inside spain which would hold all the interests outside spain, I could take︀ out the money as dividends from that company without attracting any tax liability due to︁ participation exemption.
any inputs or knowledge regarding beckham law and structure that works for beckham︂ law will be highly appreciated. thanks
all my interests outside spain would be held with the holding company in spain, no taxes on the sale of the company or capital gain, the only problem will be taking out money from the holding to the personal account thats when taxes will be trigered unless I keep reinvesting that money.
5 plus 1.
I am thinking if I throw the idea of living in spain out of the window, what structure in europe can allow me to save on capital gains tax from the sale of IP. Offcource also have a decent quality of life.
I am thinking if I throw the idea of living in spain out of the window, what structure in europe can allow me to save on capital gains tax from the sale of IP. Offcource also have a decent quality of life.
You have 2 options depending on how fast you want to cash out:
1. Live in Marbella for 5 years then move to Portugal under NHR
Since you want to live in Marbella and the lawyers suggested to form a holding imho the best strategy would be to form the holding as an ETVE.
You will be the holding director and receive a salary that will allow you to live comfortably that will be taxed at whichever rate.
Keep reinvesting in the company for 5 years.
After 5 years move to Portugal under NHR and cash out
2. Move to Portugal under NHR and appoint︀ a director for your Spanish holding
Instead of you being the holding director you'll appoint︁ somebody else and as soon as the sale happens you can cash out everything tax︂ free in Portugal.
1. Live in Marbella for 5 years then move to Portugal under NHR
Since you want to live in Marbella and the lawyers suggested to form a holding imho the best strategy would be to form the holding as an ETVE.
You will be the holding director and receive a salary that will allow you to live comfortably that will be taxed at whichever rate.
Keep reinvesting in the company for 5 years.
After 5 years move to Portugal under NHR and cash out
2. Move to Portugal under NHR and appoint︀ a director for your Spanish holding
Instead of you being the holding director you'll appoint︁ somebody else and as soon as the sale happens you can cash out everything tax︂ free in Portugal.
As soon as I take the money into the holding company, spanish taxes will apply whether I live in spain or not once I decide I need to take the money out. WHT will apply in either case. That capital gain will eventually end up getting taxed. I am trying to find a way where once the IP is sold I am able to avoid that hit.
maybe I should suck it up and live in a place which has non dom tax like cyprus, malta, UK or ireland and realise the gain without any capital gains, but I dont know how these countries will︀ apply PE rule or CFC in my particular case
maybe I should suck it up and live in a place which has non dom tax like cyprus, malta, UK or ireland and realise the gain without any capital gains, but I dont know how these countries will︀ apply PE rule or CFC in my particular case
wow marzio, you are a genius. I wonder if this is the case why bother about beckham law
so as I read clearly, I open this holding company in spain under beckham law, and take the money out as non resident of spain tax free under NHR in portugal if it still exists?
so as I read clearly, I open this holding company in spain under beckham law, and take the money out as non resident of spain tax free under NHR in portugal if it still exists?
thanks marzio, I wil re-verify this with my lawyers and update, apparently if this structure works then its almost 500-1000 euros of lawyers consultation fee money saved.
I think the problem will be that under beckham law, you cant have more then 25% shares of a holding...
not sure if you are using another company to relocate under beckham law and have a holding additional.
active business company with 100% shares is no problem︀ since the recent beckham law changes. I am more or less in the same situation︁ with a malta setup, spoke to many tax lawyers , 4 are fine with a︂ malta company with substance + beckham law. 1 is against it. I think Malta is︃ better then Gibraltar because of DTA and no tax heaven. Is Gibraltar still a Tax︄ Heaven for Spain?
not sure if you are using another company to relocate under beckham law and have a holding additional.
active business company with 100% shares is no problem︀ since the recent beckham law changes. I am more or less in the same situation︁ with a malta setup, spoke to many tax lawyers , 4 are fine with a︂ malta company with substance + beckham law. 1 is against it. I think Malta is︃ better then Gibraltar because of DTA and no tax heaven. Is Gibraltar still a Tax︄ Heaven for Spain?
chances of exit tax and audit by hacienda is very high, they will claim changing of residence for tax evasion etc etc.
How is portugal NHR better than beckham law in my case?
2 lawyers confirmed Gibralter company with beckham︅ law is not a good structure, gibralter is considered a tax haven by hacienda.
How is portugal NHR better than beckham law in my case?
2 lawyers confirmed Gibralter company with beckham︅ law is not a good structure, gibralter is considered a tax haven by hacienda.
Because you will be not relocating from Spain to Portugal so no exit tax audit.
You relocate directly to Portugal under NHR, form the ETVE as a non resident shareholder, appoint a director to the holding, cash out from the ETVE without withholding taxes, receive dividends tax free in Portugal under NHR.
You relocate directly to Portugal under NHR, form the ETVE as a non resident shareholder, appoint a director to the holding, cash out from the ETVE without withholding taxes, receive dividends tax free in Portugal under NHR.
preference was to live in marbella and try to workout the taxes, unfortunately it needs a lot of work. Portugal NHR is great but I am unable to get my head around living in portugal. I will stand out too much and thats when the problem starts, I prefer to stay under the radar and enjoy life 🙂
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