Tax planning for an IT professional with passive income
A Ukrainian citizen working in IT received passive income in the form of royalties from the US and the UK while living permanently in Poland. Differences between the countries' tax laws created a risk of double taxation on his foreign income, which increased his tax burden and complicated financial planning.
We analysed the tax laws of Poland and other EU countries and the rules on taxing foreign income. On this basis, we advised the client to change tax residency and move to Spain to take advantage of the "Beckham" regime for foreign professionals, with a fixed tax rate. Our team supported the client at every stage of obtaining the status, including preparing documents and dealing with the tax authorities.
The client obtained tax status in Spain under the "Beckham" regime, which provided a fixed rate of 24% on income up to 600,000 euros and an exemption from tax on most foreign passive income. This eliminated the risk of double taxation, reduced the tax burden and created a transparent model for managing income from IT work and royalties.
The challenge
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