In 2015, Spain introduced a special tax regime for wealthy EU expatriates that relocate to Spain. Following in the footsteps of other countries’ successful non-domiciled tax schemes, namely the United Kingdom, the self-declared goal of this programme is to attract high achievers to relocate to Spain on the back of a job offer. The typical taxpayer profile that qualifies would be a high-profile artist, techy, high-ranking corporate employee (i.e. CEO, CFO, CTO), etc.
In a nutshell, this tax scheme allows EU nationals to make spectacular tax savings on paying Income Tax in Spain (IRPF). If you opt into this scheme, you stand to benefit from substantial tax breaks on both income derived in Spain as well as worldwide income.
On opting into this special tax regime, a legal fiction takes place whereby EU expats are treated (for admin purposes) as if they are a resident taxpayer in Spain. Albeit in practice, for tax purposes, the taxpayer is regarded as a non-resident. Meaning you in fact get the best of both worlds; you get all the perks from being legally resident in Spain, yet you pay a substantially lower tax bill as you are deemed in practice as a non-resident taxpayer.
*Contingent on the value of your Spanish estate.
Beckham’s Law addresses a gap for high-end professionals that wish to relocate to Spain (on the back of a job contract), alone or with their families, and enjoy all the country has to offer, including ultra-low taxes, regardless of where they settle down in Spain i.e., in Mallorca.
If you are a high-flyer, don’t fancy paying many taxes, and wish to relocate to Spain (legally), this is the tax scheme for you. Give us a call!
In effect, this blue-ribbon tax scheme allows you, and your family, to get the best of both worlds; you get to enjoy all the perks of being legally resident in Spain albeit you are fiscally treated as a non-resident taxpayer, paying little to no tax. In my book, that’s a win-win.
Larraín Nesbitt Abogados offer Lionsgate Capital clients improved conditions on their standard Terms & Conditions.