Taxen Haven and Visa Chances
Flag theory is a concept that aims to maximize personal and financial wealth potential through the strategic distribution of life and business activities across different countries.
Spain – despite being defined as tax hell – offers many interesting flags like:
- Tax Loop Holes
- Beckham-Law
- Special Economic Zone in the Canary Islands
- Tax Concessions for the Spanish Exclaves of Ceuta and Melilla in Africa
- Compliance Residency
- Playground
- For Non-EU: Golden Visa (from 500k EUR), Digital Nomad Visa and Citizenship (Gifting 150k USD)
Contact Us
Taxen Haven and Visa Chances
Spain’s Wide Range of Opportunities
Flag theory is a concept that aims to maximize personal and financial wealth potential through the strategic distribution of life and business activities across different countries.
Spain – despite being defined as tax hell – offers many interesting flags like:
- Tax Loop Holes
- Beckham-Law
- Special Economic Zone in the Canary Islands
- Tax Concessions for the Spanish Exclaves of Ceuta and Melilla in Africa
- Compliance Residency
- Playground
- For Non-EU: Golden Visa (from 500k EUR), Digital Nomad Visa and Citizenship (Gifting 150k USD)
Contact Us
A well-positioned setup is not only important at the beginning of a tax-free life, but it also needs to be maintained in the long term.
Tax Benefits for Six Years (the year of arrival plus five more)
Beckham Law
This Spanish tax legislation originally served to attract highly qualified professionals from abroad by allowing them to benefit from lower tax rates. The name comes from the English footballer David Beckham, who was one of the first to take advantage of this law when he moved to Real Madrid.
Simply explained, this law allowed foreign workers in Spain to pay tax on their worldwide earnings at a significantly lower rate than the normal Spanish income tax rate. This meant that instead of paying the higher regular tax rate, they only paid a fixed tax rate of around 24% on their income earned in Spain. This regulation applied for a period of six years.
Foreign income is therefore not taxed under the “Inbound Expat Tax Scheme”.
Contact Us
Tax Benefits for Six Years (the year of arrival plus five more)
Beckham Law
This Spanish tax legislation originally served to attract highly qualified professionals from abroad by allowing them to benefit from lower tax rates. The name comes from the English footballer David Beckham, who was one of the first to take advantage of this law when he moved to Real Madrid.
Simply explained, this law allowed foreign workers in Spain to pay tax on their worldwide earnings at a significantly lower rate than the normal Spanish income tax rate. This meant that instead of paying the higher regular tax rate, they only paid a fixed tax rate of around 24% on their income earned in Spain. This regulation applied for a period of six years.
Foreign income is therefore not taxed under the “Inbound Expat Tax Scheme”.
Contact Us
Some Key Features of this Tax Regime:
Limited Tax Liability:
Under this regime, expatriates are considered “tax residents” in Spain, but only pay tax on their income earned in Spain and not on their worldwide income. This means that income earned outside Spain is exempt from Spanish income tax. Real estate investments, capital gains, dividends or income from foreign economic activities are tax-free under this regime.
No Reporting Obligation for Foreign Assets:
Individuals who fall under this regime do not have to declare their foreign assets in Spain. This exemption also offers a higher level of data protection, as information about assets and accounts abroad does not have to be disclosed to the Spanish authorities. This regime also avoids potential double taxation problems, as the foreign assets are not included in the Spanish taxation basis.
Fixed Tax Rate:
Income earned in Spain is taxed at a fixed rate, which is often more favorable than the progressive tax rate that applies to regular tax residents.
The Tax Goal
Score the Goal
Now even non-footballers can benefit from this regime!
The special expatriate regime in Spain is an excellent opportunity for people who have not been registered in Spain in the last five years or have never been resident there.
At denationalize.me, we offer professional support to guide you through the process of applying for and implementing this regime. For a service fee of around 2,600 to 3,500 euros, we will help you to complete all the necessary steps correctly and efficiently so that you can make the most of the tax benefits of this scheme.
Contact Us
The Tax Goal
Score the Goal
Now even non-footballers can benefit from this regime!
The special expatriate regime in Spain is an excellent opportunity for people who have not been registered in Spain in the last five years or have never been resident there.
At denationalize.me, we offer professional support to guide you through the process of applying for and implementing this regime. For a service fee of around 2,600 to 3,500 euros, we will help you to complete all the necessary steps correctly and efficiently so that you can make the most of the tax benefits of this scheme.
Contact Us
The New Tax Hotspot after the End of Portugal's NHR Regime
Spain vs. Portugal
Although the Portuguese NHR regime, once a magnet for tax optimizers, is now history, Spain’s regime is holding its own on the European stage. This regime, which provides for 24% tax on earned income and 0% on foreign income such as dividends and capital gains, contrasts with the non-dom regimes of countries such as England, Ireland or Malta – where foreign income that is not brought into the country remains tax-free.
The Spanish incentive is very attractive, all the more so as the Portuguese regime is no longer active.
The New Tax Hotspot after the End of Portugal's NHR Regime
Spain vs. Portugal
Although the Portuguese NHR regime, once a magnet for tax optimizers, is now history, Spain’s regime is holding its own on the European stage. This regime, which provides for 24% tax on earned income and 0% on foreign income such as dividends and capital gains, contrasts with the non-dom regimes of countries such as England, Ireland or Malta – where foreign income that is not brought into the country remains tax-free.
The Spanish incentive is very attractive, all the more so as the Portuguese regime is no longer active.
Significantly Reduce Corporation Tax
Canary Island Special Economic Zone (ZEC)
The Canary Islands are a popular destination for German emigrants and entrepreneurs due to their geographical location and mild climate. The Canary Islands Special Economic Zone (Zona Especial Canaria, ZEC), which is recognized by the EU as a tax haven, offers a particularly attractive tax feature.
While normal companies in Spain pay 25% corporation tax (15% in the first two years), ZEC companies enjoy the reduced rate of 4% up to a profit of 1.8 million euros. Profits exceeding this amount are taxed at the regular Spanish corporate tax rate of 25%. In addition, ZEC companies are not subject to the Spanish VAT area, but pay a local VAT of 7% (IGIC).
Significantly Reduce Corporation Tax
Canary Island Special Economic Zone (ZEC)
The Canary Islands are a popular destination for German emigrants and entrepreneurs due to their geographical location and mild climate. The Canary Islands Special Economic Zone (Zona Especial Canaria, ZEC), which is recognized by the EU as a tax haven, offers a particularly attractive tax feature.
While normal companies in Spain pay 25% corporation tax (15% in the first two years), ZEC companies enjoy the reduced rate of 4% up to a profit of 1.8 million euros. Profits exceeding this amount are taxed at the regular Spanish corporate tax rate of 25%. In addition, ZEC companies are not subject to the Spanish VAT area, but pay a local VAT of 7% (IGIC).
Spanish Exclaves in Northern Africa
50% Tax Relief
The Spanish exclaves of Ceuta and Melilla, located in North Africa and surrounded by Morocco and the Mediterranean respectively, offer interesting tax advantages. Despite their location outside the Spanish mainland, they are considered part of Spain. Companies and individuals based in Ceuta or Melilla pay only half the usual corporation and income tax.
In these territories, companies only pay around 12.5% corporation tax and income tax rates are also significantly reduced. In addition, the cost of living in Ceuta and Melilla is comparatively low. This makes them particularly attractive for non-residents who wish to register their main residence there but still spend the majority of their year in other parts of Spain.
Spanish Exclaves in Northern Africa
50% Tax Relief
The Spanish exclaves of Ceuta and Melilla, located in North Africa and surrounded by Morocco and the Mediterranean respectively, offer interesting tax advantages. Despite their location outside the Spanish mainland, they are considered part of Spain. Companies and individuals based in Ceuta or Melilla pay only half the usual corporation and income tax.
In these territories, companies only pay around 12.5% corporation tax and income tax rates are also significantly reduced. In addition, the cost of living in Ceuta and Melilla is comparatively low. This makes them particularly attractive for non-residents who wish to register their main residence there but still spend the majority of their year in other parts of Spain.
Flexible Real Estate Regime for Secondary Residencies and Tax Optimization without the Obligation to Pay Tax
Apartment for Utility Bill
In Spain, it is possible to own a vacation home all year round, whether for rent or as personal property, as long as you live in it for less than 182 days per year. This differs from the situation in Germany, where the center of life is based more heavily on the long-term availability (holding the keys) of a home. The flexible approach in Spain makes the country a popular destination for setting up a second residence or for compliance purposes without automatically becoming tax liable.
Despite the higher level of bureaucracy and a stronger tendency towards a surveillance state compared to Germany, owning a property in Spain does not necessarily lead to a tax liability. These homes can be used as a base for personal or business activities, rented out or used as an investment property. In addition, the associated costs such as electricity, water and internet bills can be used to support your international setup.
Spain’s Tax Certificate: Trusted and Attractive within the EU – and without Automatic Tax Liability
Tax ID Number (NIE) for (EU) KYC
A tax number in Spain makes sense for several reasons. Firstly, Spain is within the EU, which makes the country a trustworthy and legally safe place that is not associated with money laundering or tax crime. Secondly, a tax number, just like an available home, does not trigger an actual tax liability. Thirdly, the so-called NIE number is synonymous with the actual tax number, but can also be applied for by tourists without having any taxable income at all. We are happy to help!
In Good Hands
Consultation with Christoph Heuermann
If you have any questions about emigrating to Spain, becoming a Spanish resident or setting up a company in Spain, get expert advice from denationalize.me founder Christoph Heuermann or one of our team members.
In Good Hands
Consultation with Christoph Heuermann
If you have any questions about emigrating to Spain, becoming a Spanish resident or setting up a company in Spain, get expert advice from denationalize.me founder Christoph Heuermann or one of our team members.
Partner
Spanish Blog – Librestado
If you speak Spanish and would like to find out more about the Spanish system, visit our Spanish blog. Adrian, our expert from Spain, regularly updates the blog with detailed information and articles. Adrian and his team also offer consultations and speak English and German as well as Spanish. Don’t hesitate to contact Adrian directly if you have any questions!
To Our Spanish Blog
Partner
Spanish Blog – Librestado
If you speak Spanish and would like to find out more about the Spanish system, visit our Spanish blog. Adrian, our expert from Spain, regularly updates the blog with detailed information and articles. Adrian and his team also offer consultations and speak English and German as well as Spanish. Don’t hesitate to contact Adrian directly if you have any questions!
To Our Spanish Blog
Known From:
