As we report today, the Spanish government has announced it is planning to abandon the so-called ‘Beckham Law’, a name coined after the England footballer was one of the first players to take advantage of its generous provisions when he joined Real Madrid.
The law currently lets wealthy workers such as star footballers work in Spain but pay only around half the going tax rate (see story). If the government gets its way, the tax break could disappear next year.
As Cuatrecasas GonÁalves Pereira tax partner Sonia Velasco makes clear, the tax break was a big draw for those – admittedly relatively few – big-earning stars.
The same could be said for a bunch of UK businesses including private equity houses that were looking to move their headquarters to Spain but are now having second thoughts.
As Velasco says, “the jurisdiction does not look as attractive anymore”.
Becks, on the other hand is gearing up for a return to Italy with AC Milan and the prospect of a World Cup campaign. He’s probably not losing sleep over the plans.
Staying in Spain, The Lawyer is hosting one of the events of the year at its annual summit in Barcelona. Read our blog of the highlights here (see story).
Also on on TheLawyer.com: Clifford Chance makes eight capital markets fee-earners redundant; Dentons revenue 3.5 per cent up at the half year; and Linklaters loses two partners to Indian best friend Talwar Thakore & Associates.