You have probably come across this concept – “Beckham’s law” … But did you know that even today it is beneficial and relevant for many new residents of Spain? The bottom line is that individuals who are residents of Spain have the right to pay taxes at the rate of a non-resident for the first 6 years (only on income received in Spain). The rest of the income is exempt from paying tax, since for the next 6 years the applicant retains the residence of his country on the basis of the Beckham Law.
A special tax regime is that individuals who have received a residence in Spain are entitled to pay income tax on profits earned in Spain at a non-resident rate of 24%.
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However, this only applies to profits received from the date of moving to Spain and only for an amount not exceeding 600,000 euros. If the income goes beyond the limit, the rate rises to 45%.
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In order to take advantage of the benefits, the taxpayer must meet the following requirements:
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– have not been a Spanish tax resident for the last 10 tax periods;
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– moving to Spain must be associated with the fulfillment of an employment contract (intra-corporate transfer) or due to the receipt of the position of a company manager (residence of a “highly qualified specialist”);
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– must not receive the main source of income from activities that are related to the “permanent establishment” in Spain (for example, profit from rent);
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foreigner whose financial activity meets these requirements has the right to request a special tax status by completing Form 149 within 6 months from the date of his company registration in the system of the Spanish Ministry of Social Security or from the date of registration in the social security system in his country.
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The declaration is submitted from May to June next year – model 151 on a general basis (Modelo 151 en términos generals).
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We provide the following services:
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-Registration of the residence of internal corporate and highly qualified specialists
-Registration with the social insurance authorities
-Registration with the Spanish tax authorities under the Beckham Law
Get in touch to day for more information!