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Beckham Law
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What is Beckham’s Law?
The Beckham Law, officially known as the Impatriate Tax Regime, is a special tax regime applicable to all those foreigners who start living in Spain for work purposes, and which brings them great economic benefits. The main objective of this legislation is to attract foreign talent and qualified personnel to Spain by offering them favourable tax treatment during their first years of residence in the country.
This group of people have the possibility of opting to be taxed under a tax regime very similar to that of Non-Residents, despite the fact that they are actually tax residents because they have been in Spain for more than 183 days. Therefore, these persons are considered as IRPF taxpayers during the tax period in which the change of residence takes place and the following five, as indicated in Article 93 of the aforementioned legislation.
Who can benefit from the Beckham Law?
Foreign workers who have recently moved to Spain.
Expatriates with high incomes who hold executive or management positions.
Administrators who come to work in a company.
Requirements to apply for the Beckham Law
- The expatriate cannot have been resident in Spain for the last 5 years.
- The applicant must have an employment contract signed by a Spanish company, except for professional sportsmen and women who are governed by their own regulations.
- The directors of an entity cannot own more than 24% of the company for the law to apply and benefit from the tax saving.
- It does not apply to income obtained through a permanent establishment located in Spain. They must not have income generated through a business or professional activity with a physical presence in Spain, such as an office or business premises.
- The application must be submitted within the deadlines and procedures determined by the Tax Agency. It is important to be aware of the deadlines and comply with the documentary requirements to avoid delays or possible rejections.
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