EXCLUSIVE The Spanish taxman has declared WAR on Brits - they are luring people to the country in a massive con trick... then do one thing that will financially ruin you, warns ROBERT AMSTERDAM
American lawyer Robert Amsterdam has been inundated with messages from expats to Spain in recent months, appealing for help after having their lives turned upside-down by sudden changes to their tax regime.
American lawyer Robert Amsterdam has been inundated with messages from expats to Spain in recent months, appealing for help after having their lives turned upside-down by sudden changes to their tax regime.
Mr Amsterdam, a political lawyer, says he has since uncovered a much deeper problem within the Spanish bureaucracy, leaving scores of people millions of pounds out of pocket.
Where wealthy expats were once courted by Spain under a tax initiative known as Beckhams Law, offering a reduced burden on Spanish-sourced income, many are now reporting sudden hikes in their tax obligations, leaving them facing financial ruin.
Writing for MailOnline, Mr Amsterdam argues that Spanish auditors have declared war on Brits and other foreigners who moved to the country under the promise of a favourable tax regime - only to have it ripped away from them.
The Spanish taxman has declared war on Brits and other foreigners who moved to Spain to work. The Hacienda operates in ways that would make HMRC blush. Its ethics look fresh from the jungle.
Mr Amsterdam, a political lawyer, only took on the case to help some friends. But he says he has since uncovered a much deeper problem within the Spanish bureaucracy, leaving scores of people millions of pounds out of pocket.
Where wealthy expats were once courted by Spain under a tax initiative known as Beckhams Law, offering a reduced burden on Spanish-sourced income, many are now reporting sudden hikes in their tax obligations, leaving them facing financial ruin.
Weve been investigating a particular scam that lures foreign workers to Spain with tax breaks. Which then evaporate. A massive con trick.
Robert Amsterdam said the sprawling Spanish tax system seems structured to extort the maximum amount from unsuspecting foreigners. (Pictured: British tourists in Benidorm, 2023)
It’s known as the Beckham’s Law. Introduced in 2004, it was designed to entice employers to transfer employees to Spain in a bid to sweep up top talent from abroad.
Foreigners on big salaries, like David Beckham during his move to Real Madrid, could benefit from huge tax savings on their Spanish income if they registered to live in Spain.
It sounds good on paper. And it looks real. But its a trap. Weve interviewed dozens of victims who say their lives have been ruined after being promised the world, and then had it taken away.
British Solicitor Advocate Robert Amsterdam, of Amsterdam & Partners LLP
The scam works like this…
Your employer wants you to work in Spain. Great! Sunshine, good food, a more leisurely lifestyle. What could be wrong with that? The tax authority. Thats what.
Theyve conned your employer and lured you with lower income tax on your pay – mostly 24% - and they wont tax investments you have outside Spain.
So you go there. Who wouldnt?
Its all fine for a few years. Then the mood music changes. And a nightmare begins.
The letter through the door. The taxmans love letter: were going to audit you. For every year we still can. Look forward to a close relationship with us…
They ask for every scrap of information you possess. Not just about your pay and your job – about overseas investments as well.
Hang on – you said you wouldnt tax those. Well, now its a different story.
We have heard from scores of people who say that they have had their Beckham Law status withdrawn without explanation.
Its then retroactively charged with back taxes to said periods, completely outside the semblance of the rule of law.
Expats who moved to Spain under the promise of one contract with the government now fear financial ruin, having seen it torn up overnight.
In some cases, expats are left hundreds of thousands of pounds out of pocket.
People have also been left deeply disturbed by the relentless probes. One had a heart attack under the pressure of being audited by the authorities.
The auditors doorstop your dentist, your gym. They harass your kids school. Interview the headmaster. Do your kids speak good Spanish? Were you a good parent? Wow! If you resist, they slap you with a penalty notice for obstruction. 10,000 euros. Thats more than £8,000!
The Spanish tax inspectors have a bonus scheme. You might think it could influence their behaviour. They say you never qualified for the tax breaks. But they gave you a Certificate. They go for tax and penalties (typically 125% of the tax) and interest.
ROBERT AMSTERDAM: Your employer wants you to work in Spain. Great! Sunshine, good food, a more leisurely lifestyle. What could be wrong with that? The tax authority. Thats what. (file)
Remember, theyve hit you late, so you owe a lot of interest. If you dont pay, they seize your assets. Freeze your bank accounts.
If you appeal – good luck – it can take 8 years. Theres a famous case that took 25 years. Until then youve got no money.
Your advisers have been nobbled. They tell you to pay up. Otherwise, itll be the criminal court. The tax authority will do that. The fines. The threat of making you a criminal. Youre not but it doesnt seem to matter.
Its a scandal. Its cost people their health and most of their cash!
If that sounds horribly familiar to you, let us know. Were working to get this con trick stopped. Spanish courts. European Courts. Every way thats possible.
Why are they ruining people? Wrecking their lives? To earn themselves a bonus.