Rebecca moved to Barcelona for her work and was initially worried about how much tax she’d have to pay. But thanks to the spain beckham law, she’s been able to avoid paying much more than necessary. The new tax law, which went into effect in January of this year, has made starting and running a business much more affordable for expats. It also makes it easier for companies to hire foreign workers.
The spain beckham law, which is officially known as the Special Ex-pats Tax Regime (SETR) in Spanish, was created to attract talent and foreign workers to Spain. In order to qualify for the SETR, a worker must meet a series of requirements. The most important is that they must acquire tax resident status in the country. This can be done by filling out a special form, which includes various supporting documents. The other requirement is that they must spend at least six years in the country.
But there are other important details to consider. For example, the SETR only applies to income generated in the country. This means that you’ll be taxed at a rate of 24% on any income up to the amount of €600,000. This is significantly lower than the general rate, which can reach almost 50%. Additionally, the SETR doesn’t apply to capital gains. These would be taxed in the country where they were generated, but you’ll still have to pay a minimum of 45% of the total value of your assets.
If you’re looking to move to Spain, it’s a good idea to consult a professional. They can help you understand the requirements and determine whether or not the SETR is right for you. They can also advise you on how to minimize your taxes, so you’ll be able to save the most money possible.
Before the SETR was introduced, if you moved to Spain and spent more than 183 days in the country each year, you became a tax resident of Spain. This meant that you’d have to pay a progressive income tax on all of your worldwide earned income. This would include any money from employment, investment, or even savings.
The SETR, which is currently in the process of being finalized, will change this situation. Those who qualify for the SETR will be able to avoid paying this kind of tax by following some simple rules. First, they’ll have to prove that their move to Spain is a direct result of their new job in the country. This will be done by providing evidence such as a contract or letter from their employer. Secondly, they’ll have to show that they’ve been non-residents for the previous 10 years. This is a much shorter period than the original requirement, which was 10 years. This will make it much more accessible for many people who want to move to Spain. The SETR will be in place until 2023. After that, it will be replaced by a different tax regime.