Special tax regime
Everything about Beckham Law
Beckham Law, special tax regime for impatriates or special regime for workers displaced to Spanish territory in the Personal Income Tax Law, are the same special tax regime that offers tax benefits to those who move their residence to Spain for work, allowing them to pay a fixed tax rate of 24%, that applies only to income obtained in Spain, instead of a progressive tax on income obtained throughout the world which ranges is between 19% and 45%.
Any person who stays in Spain for more than 6 months a year becomes as tax resident, and therefore has the obligation to pay taxes. The percentage is paid based on income amount and is what is known as progressivity, increasing the percentage to be taxed as income also increases. This progressivity ranges from 19% to 45% when the taxpayer receives more than 60,000 euros per year.
Now, this progressive percentage is obtained based on the incomes received in Spain and in any other country in the world, it is precisely in these aspects where the Beckham law establishes the tax benefits, given that it does not matter if the person spends more than 6 months in the country, which would benefit them paying taxes under taxation rules very similar to non-residents regime, that is; Taxes will only be paid on income obtained in Spain, and instead of paying progressive taxes, the person pays a fixed rate of 24% up to an amount of annual income that does not exceed 600,000 euros.
Capital profits as dividends, sale of shares, interest and others, are not exempt either because together with income from property sales or goods, will be taxed at a variable rate that ranges from 19% to 26% depending the amount. Capital profits obtained outside of Spain will have to be paid in the country where the transaction takes place under their tax regulations.
Beckham Law Requirements
The application of the Beckham Law must be submitted within 6 months from the date on which person was registers as worker on the Social Security system. The Spanish Tax Agency must be informed through the form number 149 of the special regime of workers, professionals, entrepreneurs and investors displaced to Spanish territory, also attaching the passport and NIE, social security number and the employment contract with the Spanish company. If you want more information, you can visit our previous post about the Special Regime for Impatriates, or also you can request an appointment with our Marbella tax law experts.
Our law firm in Marbella Mercury Abogados provides the best tax advisors on the Costa del Sol, specialized and willing to help with the process and presentation of the application for admission to the Special Regime for Impatriates, as well as the subsequent annual declarations or the presentation of any tax obligation with the Spanish Treasury.
Telephone: +34 951 052 811
Whatsapp: +34 643 89 04 96
Source: Tax Agency Special regime for impatriates art. 93 Personal Income Tax Law
Everything about Beckham Law, Special regime applicable to workers, professionals, entrepreneurs and investors displaced to Spanish territory. Communication of the option, resignation, exclusion and end of the displacement. Form 149 IRPF.
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