What are the options for living in Spain but not paying capital gains/wealth tax there?

[jafo]

Martin Everson said:
If the GF wants Spain then so be it and just pay the taxes.
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drunkengolfer said:
I have permanent residency in Mexico and my baby has that passport.
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I'm going to go out on a limb here and say that his GF is Mexican, and she prefers Spain because she dominates the language.

I'm saying this with lots of admiration for OP, because he said this:

drunkengolfer said:
I have accumulated 7 figure bitcoin holdings that have always been declared with the Dutch tax thieves
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smi(&% rof/%

The guy is bright AF!

OP, your best bet is this:

aniglo22 said:
You could take advantage of the Beckham law in Spain :

• 24% on Spanish-sourced income up to €600,000
• No taxation on income and gains sourced outside Spain
• Within 6 months of becoming an tax resident you need to apply

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and this:

aniglo22 said:
For cryptocurrencies the physical location of your private keys is important and also the location of your exchange and their relation to Spain .
Examples :

• Private keys stored on a ledger in Spain => Spanish sourced income => Spanish capital gains tax (V1662-23 ruling)
• Custody service in Gibraltar => foreign income => exempt from taxes .
• Coins on foreign exchange => foreign income => exempt from taxes .

So use a custody service or store your ledger outside of Spain and use a foreign exchange.
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Essential question: Do you have a "cuñado?" (Mexican brother-in-law for the Spanish impaired).

PS. Based on this, I am asking this question because I know plenty of Dutch and Mexican guys successfully living in Spain with their "story" in order. Of course, you can't "slip"””which is a euphemism for "skydiving without a parachute against the Hacienda"!

 

[uncreative]

If Spain, move to a region with generous wealth tax exemptions, avoid places like p.e Catalonia.
Andalusia, Madrid, or the balearic Islands offer exemptions up to €3 million per person, and these can be combined with family members, I heard.

Keep your crypto assets stored outside of Spain. Since 2024.
crypto income must be declared in Spain, even if you use the Beckham law, but if your crypto is held abroad, you should be fine. Just be careful because the Spanish tax office can be tricky and is playing dirty sometimes, no own experience but a lot of advocates told me, so make sure everything is really secure.

You will get six years of tax relief with the Beckham Law probably, which gives you plenty of time to settle down, especially if you have a kid. After that, in some regions of spain can still be a nice place to live with reasonable taxes if you keep all earnings in a company and live from your wealth p.e. And if things should change, you can always leave without exit taxes , < 10 years.

btw for madrid is a new tax law since 2024: the Mbappé Law, no joke. It is similar to beckham law but goes with an Investment.

 

[Martin Everson]

uncreative said:
And if things should change, you can always leave without exit taxes , < 10 years.
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Once settled with kid in school and friends etc it can be difficult 🙁.

uncreative said:
btw for madrid is a new tax law since 2024: the Mbappé Law, no joke.
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You ain't joking either....lol 😳

https://thegoldenpartners.com/en/blog-en/mbappe-law/

But Spain remains a place one should 100% avoid to live if you have money.

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

 

[drunkengolfer]

jafo said:
I'm going to go out on a limb here and say that his GF is Mexican, and she prefers Spain because she dominates the language.

I'm saying this with lots of admiration for OP, because he said this:

smi(&% rof/%

The guy is bright AF!

OP, your best bet is this:

and this:

Essential question: Do you have a "cuñado?" (Mexican brother-in-law for the Spanish impaired).




PS. Based on this, I am asking this question because I know plenty of Dutch and Mexican guys successfully living in Spain with their "story" in order. Of course, you can't "slip"””which is a euphemism for "skydiving without a parachute against the Hacienda"!
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Hi Jafo,
no she's also European (French). And I do not have a 'cuñado'...

So I think my best route is to become resident and apply for this beckham scheme that will exempt me from capital gains/wealth tax for 6 years as long as my assets are held outside of Spain.
What would you guys recommend I do as I currently hold my bitcoin on personal title. Should I set up a company outside of Spain which holds the assets?

Also, I use Kraken pro to withdraw to a Dutch Revolut account whenever I need a bit of cash, but even though Revolut told meI can deposit 7 figure sums with them I don't trust them for this. Should I use a reputable Spanish bank or use a bank outside of Spain?
sorry, a lot of questions, I know...

 

[Alonzo]

drunkengolfer said:
So I think my best route is to become resident and apply for this beckham scheme that will exempt me from capital gains/wealth tax for 6 years as long as my assets are held outside of Spain.
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You have to become an employee in Spain. Beckham law targets high income foreign employees

 

[Alonzo]

uncreative said:
Keep your crypto assets stored outside of Spain. Since 2024.
crypto income must be declared in Spain, even if you use the Beckham law, but if your crypto is held abroad, you should be fine. Just be careful because the Spanish tax office can be tricky and is playing dirty sometimes, no own experience but a lot of advocates told me, so make sure everything is really secure.
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If he's not employed in Spain it doesn't matter. He won't benefit from it

 

[jafo]

drunkengolfer said:
no she's also European (French). And I do not have a 'cuñado'...
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Yikes....

I don't have an answer then. All those cases I know of have a "brother-in-law" overseas (somewhere in Latin America or Asia) who "lends" the sister some money when she needs it.

Also, it would be best to confirm what

Alonzo said:
You have to become an employee in Spain. Beckham law targets high income foreign employees
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says here.

I am unfamiliar with the Beckham Law as I've never contemplated living in Spain. I have a friend in Spain with substantial real estate holdings that I rent from when I go there, but he does NOT register me anywhere. He knows the drill. Also, he's dependent on me for quality building materials out of Asia and Latin America, so it doesn't behoove him to make me a target of the Hacienda!

 

[aniglo22]

Alonzo said:
You have to become an employee in Spain. Beckham law targets high income foreign employees
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This is only partially correct .
You are also eligble :
if you are Self-Employed in Training, Research, Development, and Innovation and at least 40% of your income derives from it .
if you are a Highly Qualified Independent Professional Providing Services to Startups , but you must have advanced qualifications .
if you are Independent Professional (Autónomo) in Entrepreneurial Activity requires favorable Enisa report or prior residency authorization for entrepreneurs.
if you are going to be a Spanish director .
So the easiest way would be forming an LLC which engages in economic activity in Spain . You get 15% Corp tax for the first 300k EUR in 2 years and you can still take advantage from the Beckham law.
We don't have the information from OP , if he's a freelancer or remotely employed etc.. So we can only make assumptions

 

[Alonzo]

aniglo22 said:
We don't have the information from OP , if he's a freelancer or remotely employed etc.. So we can only make assumptions
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He mentioned capital gains tax and wealth tax so I assume he wants to sell his crypto from time to time thus lay back and chill with his kid while benefiting from the Beckham regime. In that case he won't be eligible

But like @Sols said we don't know the full picture about his situation.

 

[Martin Everson]

All this hassle for a tax program [Beckham Law] that only lasts 6 years is not worth it. I got posts on here older than that.

6 years flies by and then he is exposed to Spanish tax hell which is more painful than being choke slammed on a bed of nails.

It is not worth it. Just pay whatever tax is owed or just avoid the place entirely.

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

 

[churumbelo]

Sorry mate, you can't do that. You can't have your cake and eat it too. Your best shot would be the Beckham law, and still, I would avoid being a tax resident in Spain.

 

[uncreative]

Alonzo said:
If he's not employed in Spain it doesn't matter. He won't benefit from it
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There are now, I mean with the 2024 changes in beckham law, several more flexible ways to apply.
For example you can qualify as the director of your own company, even if you hold 100% of the shares and just paying a small salary to save here social contributions too.

Or Employer of Record services are also a good option,
as it comes down to paperwork more or less if you really want to use it, you will find probably an easy way.

6 years completely taxfree on crypto and capital gains outside of spain can be the biggest advantage for OP.
As far as I know, there is no restriction on bringing capital gains, including crypto profits, into Spain as long as they are held abroad and he has the status of beckham law.

But you are right there is this hurdle, as Spain mainly aims to attract highincome workers officialy like you said.
And after 6 years, you need probably a new solution, maybe find a new direction or probably paying high taxes...

Depends a bit on the OP exact situation and income. If p.e his income is only from crypto and under 200k a year, after the 6 years he likely pay around 22%(+-) capital gains tax and can continue living in Spain, I would personal do, if here is no other spanish income that will be progressive taxed.
Unfortunaty tax situation can get worse pretty fast, especially with crypto.
Look at Italy , crypto tax from 26 to 42% overnight... :/

 

[uncreative]

drunkengolfer said:
What would you guys recommend I do as I currently hold my bitcoin on personal title. Should I set up a company outside of Spain which holds the assets?
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Not necessary, best way is using a foreign crypto exchange like you do with Kraken.
If you hold cryptocurrency in your own hardware wallet, you should be more cautious. A bank locker outside of spain, with documented proof like photo of wallet, bill, and possibly the bank employee as a witness, should also avoid problems with hacienda.
Alternatively, you could consider changing all in a crypto ETF or similar financial crypto products through foreign banks.
I received this advice from a spanish tax lawyer, as I was also planning to use the Beckham law years ago.

 

[jafo]

uncreative said:
A bank locker outside of spain, with documented proof like photo of wallet, bill, and possibly the bank employee as a witness,
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I would put NOTHING into a safety deposit box or bank vault! Nothing!

https://medicalexecutivepost.com/2019/10/22/bank-safety-deposit-boxes-not-so-safe-after-all/

 

[uncreative]

jafo said:
I would put NOTHING into a safety deposit box or bank vault! Nothing!

https://medicalexecutivepost.com/2019/10/22/bank-safety-deposit-boxes-not-so-safe-after-all/
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maybe just a few seconds for the photo 😉

 

[ironhide]

• Andorran residency
• Rented apartment in Andorra with proper setup for the residency renewal (there are local agencies that help with that)
• Cash rent contract in Spain
• Living in Barcelona / Girona (something close enough for less hustle)
• No bank accounts in Spain
• EMI card usage outside of Andorra, Andorran bank card usage inside Andorra
• Doctors in Spain with Andorran insurance (you can imitate traveling for specific dates)
• Doctors in Andorra to imitate living here

When your child grows up, school will be the most significant trace.
But if school starts in 5-6 years, you'll be on your 5-year renewal, which should go smoother.

This is how I see the way to do it. Maybe this plan is overkill.
I know many Spanish residents “live” in Andorra to save on taxes ”” it all depends on the amount of risk you're willing to take.

 

[jafo]

uncreative said:
maybe just a few seconds for the photo 😉
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smi(&% rof/% F*cking brilliant!
Good one!
I never saw that coming! 😳
Got to admit - You are built for the war against the dastardly, useless, unproductive parasites under the ruse of government.
Kudos!

PS. And many thanks for the great tip! 😉