Special Regime for Impatriates (BECKHAM LAW in Spain)

Our tax experts in Marbella explain briefly what the Special Regime for Impatriates, popularly known as the Beckham Law, consists of in order to make your company's tax management easier.

What is the General Impatriate Regime?

The General Regime for Impatriates is a special tax regime whereby foreigners posted to Spain can choose to apply for this regime, whereby they can be taxed at the fixed rate of 24% of Personal Income Tax, regardless of the income received, as long as it does not exceed 600,000 euros, in which case the rate will rise to 47%.

What requirements are necessary to apply for the Special Regime for Impatriates?

According to Article 93 of the IRPF Law, which governs the Special Regime for Impatriates, the conditions to be eligible for the Regime are as follows:

A) That they have not been resident in Spain in the last 5 years.

B) They must have moved to Spain for one of the following reasons:

a. As a consequence of an employment contract, with the exception of elite sportsmen and women.
b. As a consequence of acquiring the status of director of a company. In the case of an asset-holding company, the administrator may not own more than 24% of the company.
c. As a consequence of carrying out an entrepreneurial activity.
d. As a consequence of carrying out an economic activity as a highly qualified professional, or who carries out training, research, development and innovation activities.

C) Who does not have income obtained through a permanent establishment located in Spain.

D) That one of the following family ties exists with the person covered by the Special Regime for Impatriates:

a. Spouse
b. Non-marital parent
c. Children under 25 years of age
d. Children with disabilities regardless of age