Hello All,
I am posting on behalf of a friend.
He is offered a full-time permanent job within the IT in Marbella and he is trying to figure out the taxation.
He is familiar with the tax rates and all if he registers as a tax resident in Spain but then he came across this "Beckham Law" with which allegedly you are taxed only for your income in Spain and you are taxed a flat rate of 24.75% for 5 years.
It seems pretty straight forward and there are some conditions to meet which seem reasonable but then someone mentioned to him that if you are registered using Beckham Law you are not entitled to health insurance?
I searched all internet but I found this nowhere.
Is anyone familiar with the Beckham Law or someone has used it?
I would appreciate your help.
Cheers,
Expats - Taxation - Beckham Law
I googled
it and found this I have no idea if this is what you are looking for. Look here
http://www.afinanciera.com/en/af-blog/e … as-profe/#
Hi,
What you discovered is true, there is a Special Tax regime that you need to apply for within 6 months of your arrival or the date you start workin/pay to Seguridad Social. I went to a seminar about this and was provided with the following information:
Special Tax Regime
Spanish Tax Law provides a Special Regime for individuals who become Spanish tax residents as a consequence of their move to Spain derived from an employment contract. They shall be taxed regarding their worldwide work income at a fixed rate of 24% for the first Euros 600,000 per
year and at a rate of 45% on the exceeding income. Regarding other type of income they should be taxed only regarding income sourced in Spain.
If you are interested you should look it up or ask the spanish Tax Authorities about the conditions that apply.
Good luck!
Cheers,
Susanne
I was wondering this too to give me a guide of what kind of income I should be looking at. So if I were to take a job in Barcelona I would be taxed at 24% for 5 years? Do they have some sort of personal allowance, like the first 12,500 like we do in the UK? Or is this 24% of all income?
Also you say, this is the case for income sourced in Spain, how would it work if working for an English or American company, but based in Spain? Would that be classed as income from Spain or not, if the payroll is done in another country? Is there a different tax rate for that?
Is there any tax calculators available for Spain, so I can easily work out my take home pay from the salaries of roles I am looking at applying for please? Something simple like the UK tax calculator if there is one please? Also if anyone knows about other tax types like council tax, or anything else I should be considering when figuring out what salaried roles to consider please?
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