Binding Ruling V1372-25, dated 21 July 2025, addresses a highly relevant issue in the context of international mobility: whether a taxpayer benefiting from the special inbound expatriate regime under Article 93 of the Spanish Personal Income Tax Act (commonly known as the “Beckham regime”) forfeits such regime by virtue of being a partner in a UK Limited Liability Partnership (LLP) that attributes profits to him for tax purposes.
Background:
The taxpayer relocated to Spain in 2023 and opted for the special regime under Article 93 of the Personal Income Tax Act. Since 2011, he has been a partner in a UK LLP engaged in financial services and systematic investment strategies.
The LLP:
– Is not subject to a personal income tax in the United Kingdom.
– Attributes its profits directly to its partners, irrespective of actual distribution.
– Maintains the nature of the income at partner level.
– Has no offices, clients, assets, bank accounts, or business presence in Spain.
– The partner performs no professional activity in Spain for the LLP and holds no authority to contract on its behalf in Spain.
The Issue Raised:
Article 93(1)(c) of the Spanish Personal Income Tax Act requires that, in order to remain within the special regime, the taxpayer must not obtain income deemed to be derived through a permanent establishment located in Spain.
The question was therefore whether the mere attribution of profits from the UK LLP could be regarded as income obtained through a Spanish permanent establishment, thereby jeopardizing the application of the Beckham regime.
The Position of the Tax Authorities:
First, the Spanish Tax Authorities conclude that the UK LLP is analogous, for Spanish tax purposes, to a tax-transparent entity (entity under an income attribution regime), since it is not subject to entity-level income taxation and its profits are automatically attributed to its partners.
However, the decisive factor is whether the LLP carries out an economic activity in Spain. The Directorate General of Taxes determines that no permanent establishment exists because:
– The business activity is carried out entirely in the United Kingdom.
– There are no premises, personnel, or material resources in Spain.
– There are no Spanish clients or assets located in Spain.
– The partner does not organize or manage business resources in Spain on behalf of the LLP.
Accordingly, the requirements of Article 93(1)(c) are not breached, and the taxpayer may continue to benefit from the special expatriate regime.
Conclusion:
This ruling provides important clarity and reassurance: the mere attribution of profits from a foreign tax-transparent entity does not, in itself, give rise to a permanent establishment in Spain.
The determining factor is not tax transparency as such, but the actual existence of an economic activity carried out in Spanish territory. This interpretation is particularly relevant for internationally mobile professionals who retain interests in foreign transparent structures prior to relocating to Spain.