It is known as the Beckham Law because of the soccer player who was able to apply it and benefit from the tax reduction that this regime entails, but currently professional players are excluded from the possibility of applying this regime.
Let’s see a summary of who can apply the special regime, which basically consists of paying tax at a fixed rate of 24% on income from work for the first 600.000 euros, as if you were a non-resident, but being a tax resident in Spain. For the excess of 600.000 euros you would be taxed at 45%.
This special regime can be applied by those individuals who meet the following requirements:
If these requirements are met, you may voluntarily choose to apply this special regime, in which case you will be subject to Spanish Wealth Tax by real obligation.
This application of the special regime entails the following specialties, as follows:
The application is simple, a form 030 must be filled out for registration with the Treasury as a foreigner, after requesting a NIE (Foreigner Identification Number) at the police station, and then a form 149 must be completed.
The deadline for submitting the application is 6 months from the date of registration with the Social Security or from the modification in the social security of the country of origin, for which form 1 is always required, which is a standardized form at the European Union level.
The regime can be applied during the fiscal year in which it is requested and the following 5 tax periods. During these periods, form 150 or 151 must be filed within the same deadlines as the income tax return, this form number is the one that corresponds to form 100 for normal residents.
Yes, it is possible to resign during the months of November and December of each year with effect for the following year. In order to renounce, a communication must be presented to the withholder (payer company) and this company must stamp it. Afterwards, the same is presented to the Tax Agency.
This detail is important, if during this time of application of the special regime you become heir of an inheritance, you will have to declare the inheritance as resident in the autonomous community where you reside, paying tax accordingly.
This special regime is very attractive to apply, especially when the percentage of the income without applying it exceeds 24%. It is usually applied by executives of companies that come to work in Spain, normally as displaced persons, and it is also applicable to large patrimonies that intend to move to Spain coming from some other country with higher taxation.
We recommend a detailed study of the possibility of application of this regime in each individual case, since the casuistry is very varied.
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