More Americans than ever look to use Beckham Law to move to Spain
A recent report suggests that Spanish law firms have seen a spike in the number of US nationals who want to take advantage of the Beckham Law when moving to Spain, despite the negative press the special tax regime has received recently.
Americans wishing to settle in Europe are increasingly looking at Spain, and a new report suggests that the tax advantages offered by Spain's Beckham Law could be one of the main draws.
The number of Americans living in Spain has risen by 10,000 in two years according to recent stats from Spain’s National Statistics Institute (INE).
The latest data from the INE shows there were 50,623 US citizens registered as residents in Spain in 2024, up from 40,159 in 2022.
REVEALED: Number of Americans living in Spain soars by 10,000 in two years
The Local interviewed many American readers who either moved here recently or want to move here and some of the top reasons were to escape Trump and the current political climate in the US, to feel safer and to have a better quality of life.
Interest among Americans in moving to Spain also increased significantly in the months leading up to the November 2024 presidential election.
READ MORE: Trump, safety and quality of life - why so many Americans are moving to Spain
According to Spanish law firms interviewed by Spanish news outlet El Confidencial, many Americans are also attracted by the fiscal incentives of Spain’s Beckham Law.
"We've been working with North American clients for many years, but it's true that in recent months we've received more requests to help them, both from wealthy individuals looking to invest in Spain and from individuals and families looking to settle here," Miguel Echevarría, partner of Deloitte 's Private Equity and Financial Investors division, told El Confidencial.
Carlos Durán, partner at Uría y Menéndez law firm added that “We've seen an increase in interest, probably driven by several factors, such as the cost of living in the United States and the post-pandemic work flexibility.”
Antoni Murt , partner in the Private practice at EY Abogados, told the news outlet that they've also seen a notable increase among profiles linked to art, film, and culture, where the motivations tend to be personal such as family ties, Spanish partners, or cultural affinity.
For Anna Roig , senior associate at Chevez Ruiz Zamarripa Spain, the return of Trump to the White House has also behind rising interest in a move to Spain and the Beckham Law.
“For several years, interest among Americans in relocating to Spain has been gradually increasing, a situation that became more acute in the months leading up to the November 2024 presidential elections, when inquiries from potential buyers interested in relocating multiplied,” she said.
Other lawyers contacted by the news site pointed out how enquiries among US nationals often centred around finding out more about tax planning and whether they could take advantage of the Beckham Law tax regime.
El Confidencial's report coincides with news that Spain’s tax agency has this week rejected what it called a “defamatory” accusation made by a UK-US law firm claiming that the country’s Beckham Law is a “tax trap” that "pickpockets" foreigners who move to the country to take advantage of this tax regime.
The lawyer and law firm behind the eye-catching accusations is American-Canadian Robert Amsterdam, of Amsterdam & Partners LLP, who have taken out full page adverts in leading newspapers such as The Financial Times and the Wall Street Journal with claims that the Spanish tax office uses the Beckham Law to "exploits, profiteer and discriminate" against foreigners.
READ MORE: Spain slams 'insulting' claim that Beckham Law steals from foreigners
Javier Morera, partner at Broseta law firm, told El Confidencial that “the structures that work in the US aren't always optimal here. The use of trusts can be detrimental in the Spanish context.” The same applies for typical investment products such as IRAs, 401(k)s, or Roth IRAs, which require extensive tax review.
The Spanish press has recently reported that the country's tax office has intensified its scrutiny of those who benefit from the Beckham Law.
"If there's no fraud, there's no litigation, but there are many grey areas, especially with Americans ," several tax experts told El Confidencial.
The Beckham Law was first introduced in 2004 to attract talent and highly qualified workers to Spain with tax breaks. It was nicknamed after the footballer David Beckham because he was the first one to take advantage of it when he moved here to play for Real Madrid.
It essentially allows those who have not resided in Spain for at least the last five years to pay a flat rate of 24 percent on their income up to €600,000 per year.
Tax is also only paid on income earned in Spain, instead of a progressive tax on worldwide income. The normal progressive taxes for Spanish residents range from 19 to 47 percent.
In 2023, the Beckham Law was linked to Spain's new Startups Law and modified to include some more favourable conditions for remote workers and entrepreneurs. This included exemption benefits of up to €50,000 for startups, a 50 percent bonus on carried interest, a 50 percent deduction for investing in new companies (up to €100,000), and exemption from wealth tax on assets located outside Spain for up to six years.
To be eligible for the Beckham Law, you must work remotely for a company outside Spain, and cannot be self-employed. Therefore, you could take advantage of it if you move to Spain on the Digital Nomad Visa (DNV) and are employed by a company back in the U.S. but cannot if you’re on the DNV and working for yourself.
thelocal
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