Question
In today’s (Feb 1, 2025) Wall Street Journal, there was a full-page advertisement about Spanish tax authorities allegedly exploiting foreigners. Has anyone fallen victim to this issue? I don’t think I’ve seen anyone posting about it here, but perhaps folks might want to be more discreet about their dealings with Hacienda here. Maybe this is just hype to get clients?
Answers
These are the answers of Spainguru’s Facebook group members:
“This is a paid advertisement from a tax firm trying to stir up business. Take it for what it’s worth.”
“The Wall Street Journal is owned by Rupert Murdoch’s News Corp, which is not exactly known for its objective reporting. This is an ad, not journalism.”
“Don’t worry, it’s not news, it’s just an advertisement.”
“No one likes paying taxes, and in Spain, we all don’t like Hacienda. But we have a very stable economy and ample opportunities. For foreign residents or visa holders, it is essential to have the right fiscal representative—someone with experience in tax laws for both Spain and your home country.”
“Tax laws in Spain keep changing all the time, and that’s why it’s best to have a professional who stays updated and proactively works on your behalf.”
“There are ways to optimize one’s tax situation lawfully as a foreigner that most people don’t know about, and it’s in Hacienda’s interest to ensure that no one knows. A good tax advisor can make a big difference.”
“If you’re looking for a gestor who understands the US-Spain tax treaty, I can send you a recommendation.”
“I am a foreigner living in Spain but married to a Spaniard, and I can confirm that auditors do receive bonuses for recovering money. If you are audited, it’s ‘pay now, ask questions later.’ A friend in Madrid had money taken directly from his bank account—the one linked to Hacienda for tax payments—before the audit process even started. You must have your financial affairs in order and work with an expert.”
“The Beckham Law has been widely misinterpreted. It’s beneficial for high earners, but not everyone qualifies. If you’re earning over €600,000, get a specialized tax lawyer.”
“If you have the kind of money to qualify for Beckham’s Law, you should already have a lawyer and an accountant. This ad is just fear-mongering.”
“A waste of time would be hiring that law firm.”
“For retired US citizens living in Spain, only disbursements from traditional IRAs are taxed, at regular income rates on a graduated scale. Roth IRAs are generally not taxed. Always check with a professional Spanish tax preparer for details.”
Conclusion
According to Spainguru’s Facebook group members, the Wall Street Journal advertisement is a paid ad by a law firm, not a news report. Many believe it is a scare tactic to attract new clients, rather than an indication that Spanish tax authorities are specifically targeting expats.
In this video Bruno from Spainguru asks Marcos González, top tax specialist about this news (Watch from Min 18.41).
That said, Spain’s tax system is strict, and auditors have broad powers, including freezing bank accounts during investigations. Expats need to work with tax professionals who understand both Spanish tax laws and international treaties to ensure compliance and optimize their tax situation.
Here are Spainguru’s recommended tax professionals: link.
The Beckham Law, which provides tax benefits to high-income foreigners, is not as accessible as some advertisements suggest. It is mainly beneficial for individuals earning over €55,000 annually, and those considering it should consult a specialist.
