Beckham Law Spain - Special Tax Regime for Foreigners
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- čas přidán 21. 08. 2024
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Spain is a dream country for many people! Unfortunately, Spanish taxes are quite high.
Is there something to do about these high taxes? The good news is there is! If you're a foreigner.
We present to you The Beckham Law! (also known as the special regime for displaced workers - Régimen Especial para Trabajadores Desplazados in Spanish)
This is one of the most effective ways to pay less tax in Spain.
The Beckham law in Spain is a special tax regime that enables foreigners who move to the Spanish territory to pay a flat fee of 24% only on the incomes they obtain in Spain instead of a progressive tax on their worldwide incomes (19-45%).
So, basically, this special tax regime for expats make it possible to end up paying much lower taxes, hence being able to save huge amounts of money. It allows all the workers who reside abroad that want to come to work in Spain to pay income and wealth tax as if they were non-residents during the first 6 years.
This normative is regulated on section number 93 of the Spanish Income Tax Act and was published in 2004.
It was created to attract talent and qualified workers into Spain; and got its name after the famous football player David Beckham (the first one to take advantage of it).
Who are we and what do we do?
We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
We have lots of interesting articles on different topics, we have relevant information up to date.
Author: Michael Rosmer
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One thing that you did not mention is that those foreign investments are also not subject to wealth tax which is a massive thing! Also, Spain is going to make changes to the Beckham law where it is valid for a few more extra years (I believe 10) and the tax rate on the active income drops to 15%. If that happens we will move there right away.
tax rate isn't dropping to 15%.
Thank you. I only learned about Beckham Law recently.
A pleasure! Feel free to reach out in case you need any assistance with it
@@OffshoreCitizen Thank you :) I don’t think I can use it when we return to Spain because I’ve had permanent residency there in the past few years, but it certainly could be very useful to some.
Thanks!! Another country I'd love to live in.
What do you like about Spain? :)
@@OffshoreCitizen I think it's a great country in terms of life style and I have a house there but it's vacant. Based on your video, I might move there as I get paid mainly by dividends.
Loads of top footballers getting chased by the local tax authorities there.
Even Shakira who was dating Pique at the time they are wanting money off.
Beckham was not even that good lol.
Liked the video as I want to retire in Southern Spain.
Haha true. Have you seen our video on Shakira?
Michael, can you do a tax implication comparison between Spain and Portugal for someone who wants to possibly retire to either? The information I'm finding is conflicting. (or recommend where I can find accurate, current information)
Thank you.
Best is to book a call for this as this kind of thing is totally situation specific
Btw, Andalusia has no wealth tax anymore 😉 🌴☀️ and no inheritance tax below 1million, thought that could be interesting 4u
thanks for that amazing nugget - this has always stopped me living in Spain but now I am free. Really appreciate it! if you know of a good English speaking accountant, please let me know.
AFAIK two big caveats: you need to be employed by the company that sponsors you else you lose the status. And it's assumed that the status is not used for tax avoidance. Don't know if you would be OK washing your portfolio with massive capital gains.
Wrt the sponsoring, there are lots of tax advisors who can help structuring a company so that you get the status and post 6 years you get the control of the company back
Hi - so if someone were to transfer to Spain internal via a American owned MNC (with an established Spanish entity), this would imply eligibility for the Beckham Law? Also, are Spanish nationals that have never lived in / paid in Spain eligible? Thanks!
Just discovered your channel and want to congratulate for your excellent work. Would love some more recent crypto content.
What sorts of crypto topics would you like?
@@OffshoreCitizen Interested to know more about cashing out crypto but I just discovered you ALSO covered this topic! Thanks again for the treasure trove of info.
I am looking at the digital nomad visa. Can this be advantageous for a UK LTD company director?
I am also a owner and shareholder (50% with significant control) of the company that will employ me.
Will I get tax advantages?
I am unsure of the double tax treaty between UK and Spain.
At the moment I pay myself mainly dividends.
However, If I took my income 100% as salary, would I pay 24% tax only, or because the source of income is UK, will I also owe tax in UK?
What would be the most tax efficient option for UK Ltd director / shareholder?
Thanks!
Please send a message through www.offshorecitizen.net
But UK already had a tax agreement so that wouldn't apply for UK citizens right?
I’m guessing portugal is still best for digital assets such as crypto? Or is there a way to get best of both?
Depends on the details, everything is situation specific
Would love more crypto tax content
Thanks for the suggestion! Stay tuned :)
What do you think of today's video?
Are you positive that there are no taxes in Spain for American's that incur capital gains in the U.S? I plan on retiring on my capital gains. So this would be wonderful. Please advise.
do you not have to pay exit tax for capital gains on your company before leaving most of countries that have exit tax?
Depends on thresholds and specific rules (% of ownership etc..) each country differs
Often depends how long you've been there, the residential status at the time, etc so as usual, it depends, for individual situations best to reach out to us
would love to move to Spain but beckham law only works IF you work for a Spainish country.
We helped clients establish under Beckham Law, feel free to reach out in case you need any assistance
Wait, if I actually wanted to just get a job in Spain and live my life then my income tax would be 24% and foreign income is 0%? That sounds to good to be true 😂 I'm going to Google this law and read it in detail.
Can you say about does Endorsements deals Should be pay taxes ?
Does the company need to be Spanish or can it also be an international company with a legal entity in Spain?
have to be based in Spain
Is it mandatory to apply for this within 183 days of moving to Spain? Can this be applied after 183 days also?
Would investments inside a stocks and share ISA be protected if I'm registered for the beckham law and living in Spain?
Do I need to declare their existence in Spain?
Under the Beckham law you do not need to pay tax on income or wealth outside Spain. However as a Spanish tax payer you lose the ISA benefits so after 6 years everything inside the ISA would be taxable in Spain. The income benefits can be fantastic so really depends how much you hold in an ISA. Beckham law is only beneficial if your income if over around €60k a year
PPLI is better solution ….far better
Could a stock/day trader use this Beckham program?
nope you have to work for a Spainish company.
Is it possible to renewal Beckham law?
Not past the 6 years no
Are we ogliged to apply for a job?
You can reach out via our website or book a call and we'll work out the optimal strategy for you
Is there any wealth tax under this?
no south of Spain
Ahora con "solo" 1.000 millones de euros de inversión ; el gobierno regala a los inmigrantes que inviertan eses dinero un jamón ibérico de pata negra 3 jotas🤣
Worst explanation ever 😂