Scotland could bring in a new generation of entrepreneurs and millions of pounds in investment if it introduced a “Beckham tax break”, according to a new report.
Research by the Scottish Scale-up Panel says Scotland should emulate Spain’s success in offering new non-residents a period of lower income tax.
Former Manchester United and England international David Beckham benefited from a lower rate when he moved to Real Madrid in 2003.
Non-residents pay just 24% rate on their Spanish income for up to six years compared with a Spanish income tax rate of up to 47%.
When it was formally passed into legislation in 2005, it became known as the Beckham tax break and it encouraged many entrepreneurs to move to the country, some creating substantial businesses.
The Scale-up Panel is headed by former Skyscanner chief financial officer Shane Corstorphine, believes that Scotland needs more entrepreneurs with talent to take the tech sector to the next stage.
“An intervention of the likes of Beckham’s law, whether it’s for a finite period of time rather than evergreen, would be incredibly impactful. It’s a very clear message to people to come to Scotland to help grow ambitious businesses.”
The research was published as Professor Sir Anton Muscatelli, released his own Labour-commissioned report into Scotland’s low growth.
He said higher taxes are “disincentive” in attracting high-value jobs and called for sweeping reforms planning, business rates and skills training.
#Beckham #tax #break #bring #talent #Scotland #Daily #Business