In a controversial move, the London-based law firm Amsterdam & Partners LLC has launched a campaign against the Spanish Tax Agency, accusing it of unethical practices regarding the treatment of foreign residents benefiting from the 'Beckham Law.' This law, introduced in 2005 and modified in 2014, was designed to attract highly skilled workers and digital nomads to Spain by allowing them to pay a reduced income tax rate of 24% on the first 600,000 euros of income for six years.
The campaign, which began in December 2024, featured the sensational slogan "Warning. Spanish Tax Pickpockets," aimed at highlighting what the firm deems as aggressive inspections of expatriates who have taken advantage of this tax regime. According to Amsterdam & Partners, the Spanish Tax Agency (AEAT) has been luring foreign taxpayers with the promise of favorable tax treatment, only to later pursue them aggressively, often leading to disproportionate settlements.
Robert Amsterdam, one of the firm's partners, presented the report titled 'Hacienda contra el Pueblo. España y la Ley Beckham' on May 6, 2025, alongside Christopher Wales, a former advisor to British Treasury officials during the Tony Blair and Gordon Brown administrations. In their report, they assert that the AEAT is engaged in "grotesque abuses and systemic violations of the rule of law," and they encourage affected individuals to join forces against what they label as an injustice.
Amsterdam emphasized that the AEAT's practices are not just affecting expatriates but have broader implications for all taxpayers in Spain. He stated, "Montero and the others in the Government say they are going to collect money from the rich. This is nonsense; they are going to take it from you and me, from ordinary people." This statement reflects a growing concern among foreign residents about the fairness of tax enforcement in Spain.
The AEAT has responded robustly to these accusations. In a statement released on May 5, 2025, the agency clarified that only about 0.5% of the 37,000 beneficiaries of the Beckham Law have been subjected to audits, amounting to approximately 185 individuals. Of these audits, around 70% were resolved through agreements, while about 30% resulted in claims or appeals, indicating that the vast majority of taxpayers have not faced significant issues.
The Tax Agency also highlighted that its operations are not disproportionately focused on the Beckham Law compared to other tax regimes, asserting that their oversight is consistent across all tax regulations. The agency noted that some audits have uncovered fraudulent activities, including the creation of shell companies and the simulation of work contracts to exploit the tax benefits.
Amsterdam & Partners have accused the AEAT of failing to respond adequately to their inquiries and claims, further fueling their criticism. They contend that the audits often occur many years after an expatriate has begun working in Spain, creating a sense of uncertainty and fear among foreign workers.
In their report, Amsterdam and Wales describe a pattern of behavior in the AEAT's audits, where expatriates are informed that their employers are fictitious entities designed to deceive tax authorities. They claim that this tactic is used to coerce expatriates into accepting settlements, often under the threat of criminal proceedings if they do not comply.
Moreover, Amsterdam expressed concerns about the broader implications of these practices, arguing that they contribute to a culture of fear among taxpayers and legal professionals in Spain. He stated that many lawyers are reluctant to represent clients against the AEAT due to fears of retaliation, which he described as an "empire of fear" that stifles justice.
As the dispute continues, the AEAT maintains that it operates within the law and that its audits are necessary to ensure compliance and prevent tax evasion. The agency's representatives emphasize that they have a duty to uphold tax regulations fairly and impartially, regardless of the taxpayer's nationality.
The confrontation between Amsterdam & Partners and the AEAT has sparked significant public interest and debate on social media, particularly among expatriates living in Spain. Many have expressed support for the law firm's stance, while others defend the AEAT's right to enforce tax laws.
As tensions mount, both sides appear entrenched in their positions. The AEAT insists that its practices are justified and necessary for maintaining the integrity of Spain's tax system, while Amsterdam & Partners continues to rally support for those they claim have been wronged by the system.
The outcome of this dispute could have lasting implications for the treatment of expatriates in Spain and the future of the Beckham Law itself. As the law was initially designed to attract talent to the country, any perception of unfair treatment could deter future foreign investment and talent migration.
In the coming weeks, the situation will likely evolve as both parties prepare for further legal and public relations battles. The AEAT's commitment to transparency and fairness will be under scrutiny, as will the law firm's claims of systemic abuse within the tax system.
Ultimately, the resolution of this conflict may hinge on the ability of both sides to engage in meaningful dialogue and find common ground, ensuring that the rights of all taxpayers—whether local or foreign—are respected and upheld.