23/09/2024
🇪🇸 🏖️ For those who come to Spain to work—with an income level starting from €55k annually (indicative figure) or simply because they have income from foreign sources—there is a very interesting tax option. It allows you to be taxed as a non-resident, despite being a resident, for up to six years at a 𝐟𝐢𝐱𝐞𝐝 𝟐𝟒% 𝐫𝐚𝐭𝐞, avoiding the progressive scale, which in the regular system can reach 54% in some regions, like the Comunitat Valenciana (and even in Madrid, the lowest in Spain, the rate is 45%). Under the Beckham Law, annual income up to €600k will be taxed at 24% (and every euro above €600k is taxed at 47%). 📊
✅ 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐚𝐫𝐞 ✅
☑️𝐑𝐞𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐭𝐨 𝐒𝐩𝐚𝐢𝐧 𝐝𝐮𝐞 𝐭𝐨 𝐚𝐧 𝐞𝐦𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭 𝐜𝐨𝐧𝐭𝐫𝐚𝐜𝐭 𝐰𝐢𝐭𝐡 𝐚 𝐒𝐩𝐚𝐧𝐢𝐬𝐡 𝐞𝐦𝐩𝐥𝐨𝐲𝐞𝐫. This can also be through a secondment letter ordered by the employer, to serve as an administrator of a Spanish entity, or by obtaining the «digital nomad visa» and choosing Spain as your residence for teleworking.
☑️ 𝐍𝐨𝐭 𝐡𝐚𝐯𝐢𝐧𝐠 𝐛𝐞𝐞𝐧 𝐚 𝐫𝐞𝐬𝐢𝐝𝐞𝐧𝐭 𝐢𝐧 𝐒𝐩𝐚𝐢𝐧 𝐝𝐮𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐩𝐫𝐞𝐯𝐢𝐨𝐮𝐬 𝐟𝐢𝐯𝐞 𝐭𝐚𝐱 𝐲𝐞𝐚𝐫𝐬.
☑️ 𝐄𝐱𝐞𝐫𝐜𝐢𝐬𝐢𝐧𝐠 𝐭𝐡𝐞 𝐨𝐩𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡𝐢𝐧 𝐬𝐢𝐱 𝐦𝐨𝐧𝐭𝐡𝐬, providing the required documentation in each case. The period starts from the date of commencement of the activity registered with the Spanish Social Security. It has nothing to do with the 183 days of tax residence, nor is it counted from when you arrive in Spain.
☑️ 𝐍𝐨𝐭 𝐞𝐧𝐠𝐚𝐠𝐢𝐧𝐠 𝐢𝐧 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐚𝐜𝐭𝐢𝐯𝐢𝐭𝐲 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐚 𝐩𝐞𝐫𝐦𝐚𝐧𝐞𝐧𝐭 𝐞𝐬𝐭𝐚𝐛𝐥𝐢𝐬𝐡𝐦𝐞𝐧𝐭 𝐢𝐧 𝐒𝐩𝐚𝐢𝐧, except in the case of digital nomads. This means you cannot work as a self-employed individual.
💶 𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬 💶
👍 𝐓𝐚𝐱 𝐬𝐚𝐯𝐢𝐧𝐠𝐬 𝐨𝐧 𝐲𝐨𝐮𝐫 𝐢𝐧𝐜𝐨𝐦𝐞 𝐠𝐞𝐧𝐞𝐫𝐚𝐭𝐞𝐝 𝐢𝐧 𝐒𝐩𝐚𝐢𝐧.
👍 𝐄𝐱𝐞𝐦𝐩𝐭𝐢𝐨𝐧 𝐟𝐫𝐨𝐦 𝐭𝐚𝐱𝐚𝐭𝐢𝐨𝐧 𝐨𝐧 𝐲𝐨𝐮𝐫 𝐟𝐨𝐫𝐞𝐢𝐠𝐧-𝐬𝐨𝐮𝐫𝐜𝐞 𝐢𝐧𝐜𝐨𝐦𝐞 (except for employment income).
👍𝐍𝐨 𝐨𝐛𝐥𝐢𝐠𝐚𝐭𝐢𝐨𝐧 𝐭𝐨 𝐟𝐢𝐥𝐞 𝐭𝐡𝐞 𝐌𝐨𝐝𝐞𝐥𝐨 𝟕𝟐𝟎 (declaration of assets abroad) during the application of the regime.
👍𝐎𝐧𝐥𝐲 𝐩𝐚𝐲 𝐖𝐞𝐚𝐥𝐭𝐡 𝐓𝐚𝐱 𝐨𝐧 𝐚𝐬𝐬𝐞𝐭𝐬 𝐥𝐨𝐜𝐚𝐭𝐞𝐝 𝐢𝐧 𝐒𝐩𝐚𝐢𝐧.
It is necessary to review your specific scenario: expected income level for future years, sources of income (from employment or capital, Spanish or foreign), personal and family situation, whether you own or rent your residence, etc. Sometimes, the criterion of the €55k annual income level should not be the only factor to consider (it may be higher or lower, depending on each case), as you may choose to apply the Beckham Law because you expect to receive bonuses in future years that will increase your earnings.
⚠️ 𝐃𝐢𝐬𝐚𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬 ⚠️
👎 𝐌𝐨𝐬𝐭 𝐨𝐟 𝐭𝐡𝐞 𝐫𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐝𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧𝐬 𝐩𝐫𝐨𝐯𝐢𝐝𝐞𝐝 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐋𝐚𝐰 (𝐈𝐑𝐏𝐅) 𝐝𝐨 𝐧𝐨𝐭 𝐚𝐩𝐩𝐥𝐲. For example, severance payments will not be tax-exempt, as they may be in certain cases, or the 7p exemption for work performed abroad will not apply.
👎 𝐀𝐬 𝐚𝐧 𝐞𝐱𝐜𝐞𝐩𝐭𝐢𝐨𝐧, 𝐞𝐦𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭 𝐢𝐧𝐜𝐨𝐦𝐞 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐨𝐮𝐭𝐬𝐢𝐝𝐞 𝐒𝐩𝐚𝐢𝐧 𝐢𝐬 𝐬𝐭𝐢𝐥𝐥 𝐭𝐚𝐱𝐚𝐛𝐥𝐞.
👎 𝐃𝐨𝐮𝐛𝐥𝐞 𝐭𝐚𝐱𝐚𝐭𝐢𝐨𝐧 𝐭𝐫𝐞𝐚𝐭𝐢𝐞𝐬 𝐚𝐫𝐞 𝐧𝐨𝐭 𝐞𝐧𝐭𝐢𝐫𝐞𝐥𝐲 𝐜𝐨𝐦𝐩𝐚𝐭𝐢𝐛𝐥𝐞 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐒𝐩𝐞𝐜𝐢𝐚𝐥 𝐄𝐱𝐩𝐚𝐭𝐫𝐢𝐚𝐭𝐞 𝐓𝐚𝐱 𝐑𝐞𝐠𝐢𝐦𝐞 (𝐑𝐄𝐓𝐃), which can cause complications.
🧑⚖️ However, there are court rulings that support that benefits in kind considered exempt under the IRPF also apply to taxpayers who choose to be taxed under the special regime «Beckham Law»; for example, meal vouchers or private health insurance.
📝 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧 📝
You must gather all the necessary documentation that proves compliance with the requirements and complete the official application form. It is submitted exclusively online through the electronic headquarters of the Tax Agency, after registering in the Census of Taxpayers by submitting 𝐌𝐨𝐝𝐞𝐥𝐨 𝟎𝟑𝟎 if necessary, and a digital certificate is required for identification.
🛳️ Then, the Tax Agency verifies the application and may request additional documentation. It usually resolves and issues the notification within 10 working days. At SPA Finanzas, you will receive the notification in a 100% online process, so the procedure can be very fast.
This practice typically reaches out to the employee's company directly, where applicable, providing an added convenience by obtaining the necessary documents on your behalf. This minimizes the applicant's effort and ensures a smooth and worry-free process. Once the company (if it is an employee) receives the certificate issued by the Tax Agency confirming that you have activated your special tax regime, it will start applying the 24% tax rate, payslip by payslip. You will then have only one annual obligation, which is to file the annual tax return. The Beckham Law will continue to apply, unless you renounce it or are excluded, until the period of up to six years is completed.
✎ In the 𝐧𝐞𝐰 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭𝐬 𝐢𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐞𝐝 𝐢𝐧 𝟐𝟎𝟐𝟑, the option was also extended to include family members (spouse, children under 25 years of age or with disabilities, and in the absence of a marital bond, the parent of the children).
💼 At SPA Finanzas, various service packages are offered, tailored to your needs: application only, with advice, and with continuous advice. Contact SPA Finanzas today to explore the best package for your needs 💼
✉️ [email protected]
📞 622 30 33 50
Benefit from the Beckham Law: a 24% flat tax rate for foreign workers in Spain, avoiding up to 54% in progressive taxes. SPA Finanzas offers tailored services.
