Draft Bill on the Personal Income Tax Law regulation. Special Regime for taxpayers moving to Spanish territory (Beckham Law)


The text of the Personal Income Tax Regulation Project is published, which will clarify certain doubts regarding the new cases of application of the special tax regime in Spain (Beckham Law).

Draft Bill on the Personal Income Tax Law regulation. Special Regime for taxpayers moving to Spanish territory (Beckham Law)

Little by little, questions around new figures for the new Beckham Law are being clarified.

We want to mention some of the issues that are being clarified in the wording of the draft bill of the Personal Income Tax regulation, and others that, we already knew, but that we should not forget:

  • Applies to taxpayers who are going to be tax residents of Spain, that is, they must come with the intention of becoming a tax resident. The regulations state that “the tax period in which tax residence is acquired will be considered the first calendar year in which, once the move to Spain has occurred, the permanence in Spanish territory is greater than 183 days“.
  • All entrepreneurial or training, research, development, and innovation activities must meet requirements in accordance with Spanish regulations. Basically, the type of activity has to be correctly verified to be considered within the application of the Special Regime.
  • Family members can come before or after the main taxpayer. If they come before, they cannot have acquired tax residence during the tax period prior the tax regime is applicable.
  • If you are a “digital nomad” and want to apply for the Special Regime, keep in mind that you will be asked for one of these two documents:
    • Registration in the Spanish Social Security, which will necessarily imply the registration of the non-resident employer in the Spanish Social Security, or
    • Certificate of Social Security Coverage issued by the country of origin or country where the employment contract is held.

That is, in the case of digital nomads, you have to be covered a social security perspective. Working in remote has great flexibility but still need to comply certain obligations.

  • Employees with a Spanish contract, with an assignment letter or working on remote can already request the Special Regime or wait for the final publication of the order with the new model, and they will then have 6 months, the same as for the rest of the new taxpayers who can opt for this Special Regime.
  • Beware of resignations, they must comply with established deadlines and procedures, and some changes have been introduced.

Let’s hope that all these issues are approved as soon as possible!

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