Lullius Partners was approached by a high-net-worth individual (HNWI), senior executive at a prominent U.S.-based multinational group, who was planning to relocate to Spain with his spouse and children. The family had chosen Barcelona as their new residence and intended to establish a long-term base in Spain for both personal and professional reasons.
Given the nature of the client’s role within the U.S. corporate group, the cross-border implications of his move to Spain were complex. These included residency planning, application of the Special Expatriate Tax Regime (commonly known as the Beckham Law), international coordination of personal and corporate tax obligations, a careful review of permanent establishment (PE) risks, and—crucially—a tailored immigration strategy based on the recently introduced Digital Nomad Visa regime.
The Challenge
The relocation of the family triggered a wide range of international tax and legal issues. The key risks and considerations identified included:
- Ensuring the client and his spouse could reside and work remotely from Spain with the right immigration status, without triggering unwanted tax or legal exposure.
- Eligibility for the Beckham Law, considering employment structure and legal timing.
- The risk of triggering a Permanent Establishment for the U.S. corporate group in Spain, due to the client’s executive-level strategic functions.
- Potential global income taxation, U.S. reporting obligations (FATCA/FBAR), and Spanish obligations (Modelo 720), along with the need for asset restructuring and succession planning.
Our Approach
Lullius Partners led the entire legal and tax planning process, combining strategic relocation planning with high-level international tax and immigration expertise. Key actions included:
- Designing and implementing a relocation strategy around the Digital Nomad Visa, allowing both spouses to lawfully reside in Spain, with the main applicant continuing to work remotely for the U.S. company.
- Detailed assessment of Spanish tax residency implications, including double tax treaty protections and tailored pre-immigration tax planning to mitigate global taxation risks.
- Full advisory on Beckham Law eligibility, including restructuring of employment contracts and corporate formalities to meet all legal criteria under Article 93 LIRPF.
- Filing and successful admission under the Special Expat Regime, providing a capped tax base and exemption on foreign-source income.
- PE risk analysis and coordination with U.S. counsel to ensure the U.S. group remained fully insulated from Spanish corporate tax exposure.
- Advisory on compliance and reporting obligations in both Spain and the U.S., including financial disclosure, wealth planning, and succession structuring.
Result
The family successfully relocated to Spain under a secure and tax-efficient structure. The main applicant was admitted under the Beckham Regime, with no permanent establishment risk for the U.S. entity. Furthermore:
- The Digital Nomad Visas were granted for the entire family, ensuring full legal residency in Spain from the outset.
- The client enjoys a significantly reduced Spanish tax burden while maintaining exemptions for foreign-source income.
- The relocation was achieved in record time, with minimal disruption to family or professional life.
- The group’s global legal and tax position remains protected and optimized.
This case illustrates how a combination of immigration planning, international tax structuring, and strategic foresight is essential for successful HNWI relocations. The integration of Spain’s Digital Nomad Visa with the Beckham Law can provide a powerful framework for executives seeking a tax-efficient and fully compliant move to Spain—if managed correctly from day one.
Lullius Partners advises global executives, entrepreneurs, and HNWIs on international relocations to Spain, offering end-to-end support in legal, tax, and immigration matters. Whether you’re considering Mallorca, Barcelona, Madrid, etc., we can help you structure your move to Spain with confidence and clarity.
