The “Start-Ups” Law published at the end of 2022 introduced significant changes regarding the Special Regime for Expats (Beckham Law) to attract so-called “digital nomads” (international teleworkers), company directors (without a minimum shareholding, although maintaining the 25% requirement for directors of asset-holding companies), and entrepreneurs who move to Spanish territory and have not been tax residents in Spain in the last five tax years before their relocation. It also included the possibility for children under 25 years old and the spouse of the taxpayer to opt for the Special Regime.
Although Article 93 of the Personal Income Tax Law was modified, the administration was pending the regulatory development so that these new groups could benefit from the Special Regime for Expats.
Finally, through Royal Decree 1008/2023, of December 5, the Personal Income Tax Regulation has been amended, specifically Articles 113 to 120, which regulate the Special Regime for expatriates (Beckham Law) in a regulatory manner. A Transitional Provision has been introduced to regulate the situation of those taxpayers who moved to Spain in the years 2022 and 2023, became tax residents in Spain for 2023, and meet the conditions to opt for the Special Regime for Expats.
Consequently, digital nomads, directors, and entrepreneurs who acquire their tax residency in Spain in the tax year 2023 (following their relocation to Spanish territory in 2022 or 2023) will be able to choose the special regime:
- Within six months from the effective date of the corresponding Order that approves the new communication model for the option, published in the Official State Gazette (BOE) on December 15. It also foresees the possibility of exercising the option prior to the effective date of the aforementioned Order (retroactively). If opting in this manner, taxpayers in these new groups have a period of six months (from the effective date of the corresponding Order) to submit the corresponding documentation to the State Tax Administration Agency.
If you have obtained the status of Tax Resident in Spain in this tax year 2023, belong to any of these new groups, and wish to request the option for the Special Regime for Expats (Beckham Law), either from now on or retroactively, FELIU can provide support. We can assist in advising whether opting for the Special Regime is beneficial and in handling the entire application, follow-up, and compliance with tax obligations. ¡Contact us!