Moving to Spain for Work? Learn About the Impatriates Tax Regime

⚠️ What If You’re Not an IRPF Taxpayer?

If you’re not considered an IRPF taxpayer, you must notify the Spanish Tax Agency (AEAT). They will issue an approval certificate so your employer can apply the correct tax withholdings moving forward.

💡 Understanding your tax residency status and choosing the right regime can save you money and avoid legal issues.

What Is the Impatriates Tax Regime?

This special regime, established in Article 93 of the Spanish Income Tax Law, allows qualifying foreign workers to pay a flat 24% tax rate on income earned in Spain, up to €600,000 per year. Income above that is taxed at 47%, as set out by the Spanish Tax Agency.

Unlike regular Spanish tax residents, who are taxed progressively and on their global income, impatriates only pay taxes on Spanish-source income, which by law includes all their employment income, even for work done abroad, and at a flat rate—a major tax saving.

⏳ How Long Does the Regime Apply?

The regime is valid for 6 years total:

• The year you become a Spanish tax resident, plus
• The following five consecutive years

👤 Who Can Apply?

You can apply for the Impatriates Tax Regime if you meet all these conditions:

• You haven’t been a tax resident in Spain in the last 5 years (confirmed by the Spanish Tax Agency)
• You’re moving to Spain due to a job offer or relocation
• Your move is due to an employment contract, which does not have to be with a Spanish company: an assignment ordered by your employer (with an assignment letter) or remote work done exclusively through telematic means also qualify. Company directors, entrepreneurs and highly qualified professionals have their own routes
• If you’re a company director, the regime applies regardless of your shareholding, unless the company is a passive (patrimonial) entity, in which case you must own less than 25% of the company shares, as set out by the Spanish Tax Agency
• There is no cap on income from work abroad (the old 15% limit was removed in 2015), but all your employment income is treated as earned in Spain

❌ Who Is Excluded?

• Self-employed workers, unless their business is classed as entrepreneurial or they are highly qualified professionals working for start-ups or in training, research, development and innovation
• Professional athletes
• Directors of a holding company (entidad patrimonial) with a stake of 25% or more

📝 How to Apply for the Impatriates Tax Regime

You must apply within 6 months from your Social Security registration date in Spain, according to the Spanish Tax Agency.
Follow these steps:

1. Submit Form 149 to notify the Spanish Tax Agency (AEAT)
2. Include:
   • Valid passport and NIE (Foreign ID Number)
   • Spanish Social Security Number
   • Document from your employer confirming the employment relationship, or the assignment letter

Once approved, you must file your annual income using Form 151 under the special regime rules.

⏳ Miss the 6-month deadline? You lose access to the regime and will be taxed as a regular resident.

💼 Declaring Investments or Shares from Abroad?

If you also own foreign investments or shares, you must declare them properly.
Important notes:

• Only sold shares are declared
• Use Section F2, Box 0328 in Renta Web to enter each transaction
• Report gains/losses based on purchase/sale price, including commissions
• Convert foreign currency using the official euro exchange rate on the transaction date
• If you have over 48 transactions, group them into one
• Use the ISIN code tool from the Tax Agency to simplify reporting

✅ Always keep detailed records (e.g. in Excel) in case of inspection.

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Applying for the Impatriates Tax Regime and declaring foreign income can be complex and time-consuming.
With TaxDown, everything becomes easier:

• We check if you qualify for the regime
• We guide you through Form 149 and Form 151
• We help you report foreign shares and income correctly
• You avoid mistakes, save time, and stay compliant

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