Abogados Alicante

The Beckham Law: the special scheme for posted workers

Relocation in Spain

Considering a work-related trip to Spain? Take advantage of the Special Regime, outlined below, designed to offer favorable tax benefits:

If you plan to move to Spain for work and establish tax residence, you have the option to be taxed under the rules for non-residents of Spain. This tax opportunity was introduced through Law 28/2022, published on 23 December 2022, as part of the effort to promote the start-up ecosystem.

Who qualifies for the Special Scheme?

The Special Scheme applies to the following individuals:

  • Foreign workers (or Spaniards residing abroad for over 5 years) who sign an employment contract with a Spanish company and relocate to Spain due to the job offer, or when their foreign employer sends them with a written posting document. It also includes cases where work is conducted remotely using computer, telematic, and telecommunications means and systems without employer orders.
  • Foreigners or Spaniards mentioned above, who intend to conduct a business activity in Spain, as defined in Article 70 of Law 14/2013, dated 27 September, on support for entrepreneurs and internationalization.

Conditions to qualify for the Special Scheme:

  • Not having been a tax resident in Spain during the previous five tax periods.
  • The move to Spanish territory should occur either in the first year of applying for the regime or in the year before.
  • The application for this Special Regime must be submitted within six months of obtaining residence in Spain.

What are the tax advantages of the new Beckham Law?

The tax advantages are significant compared to the regular national tax system.

For example, a Spanish citizen earning more than €20,200 per year would face a state tax retention of 30%. However, a foreigner using the Special Regime will be subject to a maximum tax rate of 24% up to €600,000.

For income exceeding €601,000, the tax retention would be 47%.

This is substantially lower than the tax retention applied to a Spanish citizen earning over €300,000 per year. Therefore, considering the Special Regime is highly recommended.

Duration of the special scheme:

The Special Regime will be applicable during the tax period when the taxpayer establishes habitual residence in Spain and for the subsequent five tax periods, unless the taxpayer chooses to waive or is excluded from the regime.

The tax period is considered the first calendar year when the residence is acquired and once the stay in Spanish territory exceeds 183 days.

The taxpayer’s spouse and children under the age of twenty-five (or any age in case of disability) may choose to pay non-resident income tax while maintaining their status as taxpayers for personal income tax.

Effective tax planning is essential for managing family finances. If you need assistance with your visa application or understanding the Special Regime, feel free to contact us and schedule an appointment with our specialized lawyers and tax advisors.

 

For more information, please contact Pellicer & Heredia at +34 965 480 737 or send us an email at info@pellicerheredia.com.”

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