As of 1 January 2023, the new Personal Income Tax Special Regime for workers posted abroad, also known as the “Beckham Law” or the “Beckham Regime”, which has been introduced by Law 28/2022, of 21 December, on the promotion of the start-up ecosystem, will come into force.
The main changes included in the new regime are:
- The number of tax periods prior to the worker’s posting to Spanish territory during which he must not have been a tax resident in Spain is reduced from 10 to 5 years.
- The subjective scope of application of the regime is extended to the following cases:
- “Digital nomads”: workers who, whether or not required by the employer, move to Spanish territory to work remotely using exclusively computer, telematics and telecommunication means and systems.
- Directors of start-up companies, regardless of their shareholding percentage in the share capital of the entity, with the exception of equity entities, in which case it is necessary that the director does not hold a shareholding that determines their consideration as associated (equal to or greater than 25%).
- Persons carrying out entrepreneurial economic activity in Spain: under the terms of the Law on support for entrepreneurs and their internationalisation (Law 14/2013). Obtaining income generated through a permanent establishment in Spain does not preclude the application of the regime.
- Highly qualified professionals: who provide services to start-up companies or carry out training, research, development or innovation activities, receiving remuneration that represents in total more than 40% of their total income (business, professional or personal work). Obtaining income generated through a permanent establishment in Spain does not preclude the application of the regime.
- Family members: spouse and children under 25 years of age, or of any age if they are legally incapacitated, who travel with the impatriate to Spanish territory, subject to compliance with a series of requirements.
- Not only income from employment, but also all income from economic activity classified as entrepreneurial activity is considered to have been obtained in Spanish territory.
- Income from work in kind established in article 14.1.a) of the Consolidated Text of the Personal Income Tax Law (i.e., remuneration in kind exempt under article 42.3 of the PIT Law) will be exempt.
These changes represent an overall improvement to the Beckham Regime and should enhance Spain’s appeal in attracting international talent.
