Our firm advises taxpayers covered by the Special Regime for Workers Posted to Spanish Territory to review their tax situation for the 2024 tax year in November, as some of them may have to comply with certain census obligations.
This special regime, also known as the Beckham Law, allows individuals who have acquired their tax residence in Spain as a result of moving to Spanish territory for work purposes to pay Non-Resident Income Tax.
Following the publication of Law 28/2022, of 21 December, on the promotion of the start-up ecosystem, this regime has undergone changes, which came into force on 1 January 2023:
- Previously, it was required not to have been resident in Spain in the ten tax periods prior to the move to Spanish territory, reducing this figure to just five years.
- The move had to take place as a result of an employment contract or appointment as a director in a non-related entity. Currently, the fact of being a related entity does not exclude the regime, as long as it is not an asset-holding company, and it is allowed to apply for new employment reasons, such as the performance of an entrepreneurial activity or an activity performed by a highly qualified professional providing services to emerging companies. There is also the option of applying as a spouse or child under the age of 25 or a child with a disability of a taxpayer covered by this scheme.
It lasts for 5 years, in addition to the year in which tax residence in Spain is acquired. However, there is the possibility of renouncing in the event that the taxpayer’s situation undergoes changes that result in less advantageous taxation. This renunciation should be made expressly in November and December, prior to the beginning of the calendar year, and with effect from the beginning of the calendar year. In the event that the taxpayer no longer complies with the requirements under which he/she joined the scheme, he/she must opt out of the scheme within one month of the non-compliance. Unfortunately, in both situations the taxpayer loses the possibility to opt back into the scheme in the future.
If you need help to opt out of this special regime, or to complete the census obligation to opt out this November, we are at your disposal.
Isabel María Díaz Rubio.