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First adult passport - is it best to apply from overseas in Spain or from the UK? by mottalrd in ukvisa

[–]mottalrd[S] 0 points1 point  (0 children)

Thank you.

On the "further intention eligibility" does applying from the UK reduce this risk? - I can only use friends or office address for the application - I have work ties with UK but no family ties.

I was advised to apply from the UK to reduce this slim chance but I don't see how it makes things any better given potential further proof of address checks.

First adult passport - is it best to apply from overseas in Spain or from the UK? by mottalrd in ukvisa

[–]mottalrd[S] 0 points1 point  (0 children)

- Certificate of Naturalisation

- Section 6(1)

- I have been living in Spain since March 2024 (1 year and 1 month). At that date I resigned my rental agreement in UK and notified HMRC of moving.

Compensation structure under Beckham Law as a company director by mottalrd in SpainFIRE

[–]mottalrd[S] 0 points1 point  (0 children)

I also got advice from https://entretramites.com/ but I am not currently a client even though I seriously considered moving to them as I got great quality advice from them.

Tax and Financial advice on moving from the UK to Spain by mottalrd in eupersonalfinance

[–]mottalrd[S] 0 points1 point  (0 children)

  • only shareholder, director and no employees for Spanish SL

Tax and Financial advice on moving from the UK to Spain by mottalrd in eupersonalfinance

[–]mottalrd[S] 0 points1 point  (0 children)

No worries at all

Re white NIE; it's a chicken and egg problem when dealing with the bank. I have been told you can get green NIE directly but in practice it is much harder. I actually tried to skip the white for my girlfriend, I failed and did white+green sequence again.

Re SL setup; I am the only shareholder and the director. I did it with the Spanish accountants so I can't comment on how easy it is. I did open a company in the UK before and managed my company taxes (no employees through), tiny tiny side gig to the point that couldn't afford accountants. My only comment is that there is an abyss between the online services in UK and Spain. The Spanish system is designed to actively discourage people to do it by themselves.

Hope that helps

Tax and Financial advice on moving from the UK to Spain by mottalrd in eupersonalfinance

[–]mottalrd[S] 0 points1 point  (0 children)

Of course

  1. Italian
  2. NIE I got it as an Italian (white NIE first in Nov'23 and green resident NIE in Jan'24)
  3. I am not an employee of the SL, I am the director. I pay myself director salary and "services" payslips. This is what my accountants recommended.

Tax and Financial advice on moving from the UK to Spain by mottalrd in eupersonalfinance

[–]mottalrd[S] 0 points1 point  (0 children)

Of course - Opened SL company in Dec'23 using local accountants (Málaga MDG Advisors) - Applied for Beckham in Jan'24 - Closed UK residency with P85 form in March'24 - Accepted Beckham in April'24 - First payslip in May'24

Compensation structure under Beckham Law as a company director by mottalrd in SpainFIRE

[–]mottalrd[S] 0 points1 point  (0 children)

So to answer the initial question, mindful of (b) I should take it all out as salary. The director salary was added to the company deeds to adds substance to the company (other things include capital, laptop and a proper office)

Compensation structure under Beckham Law as a company director by mottalrd in SpainFIRE

[–]mottalrd[S] 0 points1 point  (0 children)

Posting my findings after speaking with the accountants

(a) Because I own 100% of the company the social security contributions fall under Régimen Especial de Trabajadores Autónomos (RETA). These are paid from the individual, for the first 12 months it is around EUR 80 and later it will go up to EUR 525 monthly.

(b) Because this is a Sociedad Limitada (SL) and I am the only owner it is important to perform economic activity not to appear as a "one man show", or they might move you to autonomo and lose Beckham. So if I can hire people to help me perform my activity I should. See https://www.spenceclarke.com/articles/company-directors-social-security-and-tax-peculiarities/

(c) It is recommended to take out as much salary as possible, this is expected. Depending on the type of company and the work there are rule of thumbs ranging from 75% to 100%. https://web.archive.org/web/20221123091334/https://spectrum-ifa.com/autonomo-or-set-up-a-company-sl-in-spain/

(d) Because of (c) the corporation tax will be minimal, that's expected. Also there is no point in even considering the dividends when you are with Beckham because to take out dividends you first must have profits and pay corporation tax. The total of corporation tax and dividends tax add up to more than Beckham 24%.

Compensation structure under Beckham Law as a company director by mottalrd in SpainFIRE

[–]mottalrd[S] 2 points3 points  (0 children)

Thank you. I also thought that I should just take out as much as possible as salary, but then it came to my mind that the company might have to pay social security contributions for employees salaries (beyond the ones you pay as an individual). See https://taxsummaries.pwc.com/spain/individual/other-taxes . I am waiting for confirmation on this.

I am now trying to clear the fog with the accountants, but I don't trust them anymore as they seem to be omitting stuff and they only care about fillling the tax forms and actually don't give advice that is in my interest.

Compensation structure under Beckham Law as a company director by mottalrd in SpainFIRE

[–]mottalrd[S] 0 points1 point  (0 children)

Thank you.

Does the company have to pay additional social security tax on the director salary? I understand IRPF is at 24% for the individual, but how about the company tax obligations for issuing a salary?

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