Beckhams Law

[peteroldracer]

Interesting thread on a local forum from a Brit who works full time in Spain, and has a certificate to say he only pays tax in the UK using "Beckhams Law" and also does not need to declare assets on Form 720. He is asking about getting Spanish residency (despite having lived and worked here for a couple of years)
Is this some unheard of loophole or is it a lot of twaddle from a dodgy accountant?

[El Cid]

No its legit

https://balcellsgroup.com/beckham-law-s ... gIYVvD_BwE

Sid

[Manchesteral]

I think it's safe to say he won't be receiving residency status with his tax position and current economic conditions in Spain, why should we allow him to live and work here but pay his taxes elsewhere, he will fall, and rightly so !

[El Cid]

Did you actually read the article? Nowhere does it say that you don't pay tax in Spain, just that it will be less.

Sid

[Manchesteral]

Did you actually read the article? Nowhere does it say that you don't pay tax in Spain, just that it will be less.

Sid

Yes, I did read the article and if my interpret it correctly it would allow people who use this loophole to avoid paying some taxes in Spain therefore depriving Spain of some taxes that it badly needs !

[peteroldracer]

I would think that this Law would only get approval for people in "proper jobs", on contracts at good earnings, so the beneficiary of the tax relief will have more money to spend in the Spanish economy than the thousands of people earning little and contributing the same?

[markwilding]

A flat rate of 24% up to a limit of 6 years to attract talent to Spain. It could also mean that Spain could compete with other countries while offering an average of 25 per cent less in gross pay.
It says that a person can't have been a resident in the last 10 years so your guy might lose the benefit, should he become one

What I didn't get though was while Beckham was the first beneficiary, the document says that professional sport athletes are excluded from the scheme.

[El Cid]

I think he managed to qualify as a “gilipollas profesional”

Sid