xoffie

Hi

Im moving to BCN in a few weeks and have been advised that my first 180 days will be taxed as a non resident before applying for beckham law tax.

100% of my earnings will from Spain, do I also have to pay some kind of tax in the UK as I am non resident in Spain? If so, how much do I have to pay in the UK? Apparently I will pay around 24.5% non resident tax on my salary, do I have to pay the full british taxes on top of all my remaining salary? Seems huge

Help!

lynnxa

but you'll be resident, won't you - so why wouldn't you just be paying tax like any other resident - & why would you need to apply for the Beckham thing?

you wouldn't be paying any tax in the UK


or am I totally confused

cricketman

The Beckham law was scrapped a while ago, someone is giving you duff info. And you'd only have been better off with it if earning a large saalry, 80k or over I think

Yes if you are in Spain for less than 180 days then you can pay tax in the UK if you prefer, but then from 2013 onwards should pay it in Spain again like anyone else

Kayak

You can still apply for the Beckham tax. There is a new limit to it which has caused people to think it doesn't exist any more- but it does. I think if you earn over 600K euro you can't apply for it. You may be better off not having it if you earn a low salary as been pointed out. Find a spanish tax expert who can do an assessment of your position. PM me if you need details of contacting one.

If you live in Spain you will pay around 24% and you can claim back the tax from day 1 of your employment to a spanish company.

You won't have to pay any UK tax unless you still have income from the UK i.e. rental property etc.

FYI I am on the Beckham tax and I know people who have just applied for it and got it....

Domino

brief summary on the Beckham Law, which despite what is suggested here is generally accepted to have been written to allow David Beckham to retain more of his salary, a government subsidy on his Real Madrid salary.

http://www.arcos-lamersasociados.com...ers-asociados/

the law was rescinded in 2010 so you are getting very old information

just pay the taxes and get on with your life.

britishbull

You can not become tax resident in Spain in this tax year as there are not 183 days left in which to reside in Spain. However, you can tell the UK that you have gone non-resident from your arrival in Spain and if you work for over a year they will accept this as long as you spend less than 90 days in the UK during this period. Rules are different for whether you are working abroad or just lounging around. The manner in which Spain taxes you does not concern the UK on Spanish income as long as you are non-resident with regard to the UK so it will then be up to the Spanish authorities to decide when they want to tax you as a resident (if you were only working for a year then with holidays abroad next year keeping you under 183 days you might also be taxed as a non-resident in the new SPanish tax year).

In the worse case if above does not apply for some reason you would still get a tax credit to set against tax due in the other country.

There are also social security payments in Spain, don't know if you avoid these as a non-resident

Domino

I have asked an abogado and he tells me the Beckham Law is still in existance and hasnt been rescinded
despite the information on 2 other websites.
ho hum, wonder if I am eligible