Relocating to Spain can be highly lucrative for professionals due to tax advantages. Employees who move to Spain for work can benefit from a fixed 24% tax rate on their employment income for five years as «non-residents.» Foreign investments remain entirely tax-free.

However, this regulation—commonly known as the Beckham Law—can turn into a nightmare for non-residents. The Spanish tax authorities have increasingly been retroactively targeting individuals who previously benefited from the regime, even if they have long since left the country. «The way the Spanish authorities are proceeding is outrageous. People are being intimidated,» says British lawyer  Robert Amsterdam, who represents several affected clients.

Swiss institutions should provide information

According to Amsterdam, Swiss banks are also feeling the heat, as they manage the assets of former Spanish non-residents. «Based on our clients' documents, we know that multiple Swiss financial institutions have been asked by the Spanish authorities to hand over customer data,» he states.

Despite the automatic exchange of information—an agreement that has been in place since 2005 and was last updated in May 2015—the Spanish authorities’ actions raise serious legal concerns, Amsterdam emphasizes. «The tax office is pressuring affected individuals into out-of-court settlements by threatening them with severe financial and legal consequences. Such an approach undermines legal certainty and violates EU regulations on free movement and data protection.»

OECD rules are overstretched?

Additionally, Geneva-based banks have also been urged to cooperate and provide information on foreign assets. However, it remains unclear how these requests are being assessed and whether they comply with international standards. There is growing suspicion that the Spanish tax authority is deliberately exploiting OECD regulations to extract information and enforce payments. Furthermore, it remains to be seen whether Swiss tax authorities are aware of these developments or if they are being kept in the dark about Spain’s aggressive measures.

Switzerland’s State Secretariat for International Finance (SIF) has stated that it has no knowledge of such cases.

For Amsterdam, the situation is clear: «The Spanish authorities have weaponized the Beckham Law, turning it into a tool for disproportionately targeting foreign income earners. This must not be tolerated.»