
Modelo 720 US LLC: 2026 Reporting Guide for Spanish Residents
If you live in Spain and hold an interest in a Modelo 720 US LLC, you might be sitting on a tax reporting landmine. Every year, many Spanish tax residents discover—often
In any case involving international disputes, it is crucial to seek legal advice as soon as possible. Sometimes alternative dispute resolution methods do not work, and the case ends up in court.
As dual-qualified UK and Spanish barristers, our dispute resolution experience provides a straight-forward approach to assist our clients throughout the whole litigation process. With our considerable experience in international litigation across most areas of the law, we have the expertise to build a case.
Del Canto Chambers has an extensive network of partners around the world to support the interests of our clients.
Our international arbitration team can handle everything from start to finish. We will advise on a strategy from the outset, draw upon our considerable experience of litigation and /or arbitration to give objective and independent advice on the strengths or weaknesses of case and the prospects of success.
As qualified barristers we are able to provide a seamless international arbitration service for our clients, from initial case preparation and evidence gathering through to representation in Court. This can help reduce litigation costs and our Senior Counsel led approach means your case will be handled personally and consistently.
London is one of the world’s leading centres for dispute resolution. It offers a range of dispute resolution mechanisms through the Courts, arbitration and mediation.
English courts recognise the benefits of mediation and other forms of Alternative Dispute Resolution (ADR) in helping parties to settle cases outside the court process. Even after litigation has commenced, there are a number of stages when the court can stay proceedings to enable the parties to mediate. Our expertise in the international field is reflected in the wide variety of clients for whom we act including traders and entrepreneurs. We never lose sight of the commercial realities, consequences, the pressures and priorities that our clients have to face every day.
We also handle disputes arising from commercial distribution and agency, mergers and acquisitions, joint ventures, shareholders agreements and corporate disputes. We are well versed in arbitration and related court proceedings, such as jurisdiction challenges, freezing orders and the enforcement of arbitral awards.
Our strong dispute resolution team represent clients before Spanish domestic and EU courts (including the Supreme Court and the Court of Justice of the European Union), international and domestic arbitration. We coordinate proceedings in more than one jurisdiction.
We are frequently requested to appear before the courts to enforce English judgments and decisions in Spain. Enforcing a court decision before Spanish courts involve new proceedings requesting the reimbursement of a sum of money, the right to have an action carried out or not carried out, or that a recognised right be fulfilled by registration in the relevant public registry, depending on the order. After the Brexit transition period enforcement of judgments between the UK and EU member states will essentially be countries’ national laws including the “exequatur” court proceedings to obtain first a recognition and finally the enforcement of the judgement.
Our litigation lawyers provide advice and act at all stages of the litigation, including ordinary appeals against decisions by the first instance courts. We are specialists in the preparation of appeals before the superior courts and the Spanish Supreme Court. We can assess the risks, costs, procedures and advise on the best strategies when dealing with the judicial system in Spain. If there is a cross-border element our dual-qualified lawyers will be able to advise on the regulation and associated implications.
Del Canto Chambers’ dual-qualified, multilingual tax lawyers have handled over 500 complex cases from Europe, the Middle East, Latin America, and Asia. Discerning London-based and international clients, corporations, solicitors, and tax advisors count on our expertise.
You can more about what clients have to say, about working with Del Canto Chambers here below.
The Beckham Rule is a special Spanish tax regime for expatriates. It allows qualifying individuals to pay a flat tax rate on employment income and to be treated as non-residents for certain other tax purposes.
Any individual who moves to Spain for professional reasons and has not been tax resident in Spain during the five previous tax years may apply. This includes employees, remote workers, directors, and certain entrepreneurs.
Qualifying income is taxed at a flat rate of 24% up to €600,000. Income exceeding that threshold is taxed at 47%.
You must not have been considered a tax resident in Spain during the five tax years immediately preceding your relocation.
Your move to Spain must be for genuine employment or professional reasons, such as:
Holding an employment contract with a Spanish or foreign companyWorking remotely from Spain under a Digital Nomad Visa
Acting as a highly qualified professional or entrepreneur conducting a business activity in Spain
Serving as a director of a company, provided that—if the company is asset-holding—you hold no more than 25% of its shares
You must apply for the regime within six months of registering with the Spanish Social Security system (Seguridad Social). This deadline is strictly enforced.
The regime applies for a total of six tax years: the year you become a Spanish tax resident and the following five full years.
The regime applies for a total of six tax years: the year you become a Spanish tax resident and the following five full years.
Under the Beckham Rule, all employment and professional income is taxable in Spain, regardless of where it is earned. However, income from non-Spanish sources—such as interest, dividends, investment income, and capital gains—is not subject to Spanish tax.
You are only subject to Wealth Tax and Solidarity Tax on assets located in Spain. Foreign assets are excluded from the Spanish tax base during the six-year period.
Your spouse and dependent children under 25 (or of any age if legally disabled) may also benefit from the regime, provided they meet the requirements and file separate applications.
If you move to Spain to act as a director, you may apply regardless of your shareholding. However, if the company is an asset-holding entity, your ownership must not exceed 25%.
If you cease to be tax resident in Spain before completing the six-year period, you will automatically lose the benefits of the regime. From that point onward, you will be taxed under the general Spanish tax system, which includes progressive rates and worldwide income taxation.
Del Canto Chambers has a specialised team ready and eager to support you to apply for Spanish nationality. If you are interested in applying and would like to know if you are eligible, we would be delighted to help you.
Del Canto Chambers specialists are constantly up to date with new legislative changes and aware of any Spanish tax and legal implications. Contact our Spanish legal and tax specialists to find out the best tax planning and corporate structures in your circumstances.
At Del Canto Chambers we are always sharing our knowledge and act as an active voice across different media. The following articles and news are related to and relevant for Real Estate Sale & Purchase and Spanish Tax Law.

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