New White Paper Documents Sprawling Abuses and Violations of Rights by the Spanish Tax Authority

Amsterdam & Partners LLP warned the Spanish government today to immediately address alleged abuses by its tax authority against both foreign residents and citizens as documented in an initial report published in Madrid today.

The international law firm, led by founder Robert Amsterdam, held a press conference today to launch the white paper “Hacienda vs. The People” at the Madrid Press Association (La Asociación de la Prensa de Madrid – APM), accusing the Spanish Tax Authority (STA) of systematically targeting foreigners who relocated under the country’s “Beckham Law” tax incentive program.

“This white paper accuses the Spanish Tax Authority of systemic violations of rule of law demonstrated by their activities with respect to the Beckham Law tax incentive program. This has created an intimidating climate of fear which has no place in a democratic country. The testimonies we have collected have been nothing short of shocking,” said Robert Amsterdam. “We have obtained testimonies from individuals who have seen their rights violated and lives destroyed by a tax authority which acts with impunity.

The report publishes findings that tax inspectors have “turned lives upside down” by launching retrospective investigations against foreigners years after they received official certification under the Impatriate Law, which offers both tax certainty and a favorable tax treatment to attract global talent.

According to the investigation, victims typically face unexpected tax demands with substantial penalties and are pressured to pay immediately or accept settlements. The firm alleges that inspectors receive financial incentives through a €2 billion bonus scheme over 10 years that rewards collection of additional taxes.

“Our white paper documents shocking abuses of state power,” said Christopher Wales, a British tax expert and co-author of the white paper. “Our investigation has uncovered systemic use of excessive audit practices involving false and nonexistent claims. A few victims have been successful in appealing these false claims, but it takes years, and justice comes far too late.”

The Impatriate Law, introduced in 2003 and nicknamed after footballer David Beckham, allows qualifying foreigners to pay tax only on Spanish income at a flat 24 percent rate rather than Spain’s progressive tax structure, while exempting overseas income.

The report documents three case studies:

• One resident received certification under the Beckham Law but was later told years later that she never qualified. After a year-long investigation during which the STA claimed her employment was a sham, she faced threats of criminal charges. The stress led to hospitalization before she eventually paid the demanded settlement.
   
• One Swedish entrepreneur interviewed by the firm had moved to Spain to expand his business, two years after relocating sold a minority holding in a German company he had founded and previously worked for. Despite having proper certification and filing all required returns, the STA launched an investigation, claiming his Spanish company was a sham and threatening criminal prosecution. Traumatized, he left Spain but continues to face STA demands.
   
• Another, a British financial services executive temporarily transferred to Spain after Brexit, returned to London when requested by his employer. A year later, the STA began investigating his Spanish residency period, demanding extensive international financial information despite refusing to specify what they were seeking.

During the Madrid press conference, Amsterdam & Partners LLP announced that the firm is preparing cases in a number of jurisdictions, including Spain, the Court of Justice of the European Union in Luxembourg, the European Court of Human Rights in Strasbourg as well as raising these issues in an upcoming filing with the European Commission. The white paper calls for a new, fully independent review of the practices of the Spanish Tax Authority among other recommended reforms.

The law firm has published full page advertisements to warn of these deceptive practices, which appear to be a deliberate tax trap, in the Financial Times, Wall Street Journal, The Irish Times, El Economista, and several Swiss newspapers, with many more to come.

To download a copy of “Hacienda vs. The People” please visit spanishtaxpickpockets.com.

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James Kimer

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Media Theory

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