Question about Beckham Law
Have there been any news on Beckham law for self-employed? It’s been almost 6 months since the first visas were approved, so there should be some clarity by now, right? Trying to understand whether I should even consider this visa or stick with being my husband’s “+1.
Answers
These are the answers of some Facebook group members:
”No news, but I would count on autónomos paying the regular IRPF rates”
”In the Spanish government’s defence, I’m not sure they ever announced anything different. I think it was all the blog writers and poorly informed journalists that led us astray”
”The latest draft guidance maintains that autónomos cannot access the IRNR regime”
”At this point, it is not even possible to apply for Beckham Law as a “+1″. Even though the law got passed and this seems very straightforward, there is no form available for spouses of Beckham Law applicants to also apply”
”The way I understand it (and I’m no expert) the DNV and Beckham Law applications are separate. So if you meet the criteria outlined in the tax law, you can still apply for Beckham Law, even if you don’t have the DNV. For example, an EU citizen that starts an innovative company could qualify for BL but they don’t need the DNV. But then they haven’t published the new rules yet, so who knows”
”Following; cause I’m not sure if I’ll have to pay close to 50 percent of my wages”
”To be clear, the top rate of 45% is a marginal rate that kicks in at €60,000 of taxable income (which for an autónomo is after deducting expenses and the personal allowance of €5550. By my calculations, your effective tax rate for billings of $100,000 (USD) is 31% after you factor in a Seguridad Social contribution of €540 per month, which covers your family’s healthcare and is also deductible. Every dollar you make over that is taxed at 45%, of course, but it’s not from the first dollar”
In conclusion, according to Spainguru Facebook group members, there is still some uncertainty about the Beckham Law for self-employed people in Spain. While the government has not yet released any official guidance, it seems likely that autónomos will not be able to access the IRNR regime, which would have given them a significant tax break. This means that self-employed people who are considering moving to Spain under the Beckham Law should factor in the higher tax rates when making their decision. However, it is important to note that the top rate of 45% is a marginal rate, which means that it only applies to income above €60,000. For most self-employed people, the effective tax rate will be lower than this. Additionally, the Seguridad Social contribution of €540 per month covers healthcare for the whole family, which is a significant benefit.
