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? eek¤%&

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

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[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]

manukahoney said:
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.
Click to expand...

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.