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

If you’re a foreigner living and working in Spain, you may be eligible for the Special Regime for Inbound Workers, commonly known as the Beckham Law. This optional tax regime allows qualifying expats to pay lower taxes on Spanish income, compared to the standard IRPF rates.

👤 Who Must File a Tax Return in Spain?

According to Article 8 of the Personal Income Tax Law, foreign residents in Spain are subject to the same tax rules as Spanish citizens, including IRPF (Personal Income Tax).

You are considered a tax resident in Spain if:

• You spend more than 183 days in Spain during a calendar year Sporadic absences are counted unless you prove tax residence elsewhere
• Your main economic interests are based in Spain
• Your spouse or minor children live in Spain (if not legally separated)
• You own property or hold rights over real estate in Spain
• You’ve moved to Spain to work and meet the legal criteria

⚠️ 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 45%.

Unlike regular Spanish tax residents, who are taxed progressively and on their global income, impatriates only pay taxes on Spanish-source income, 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 10 years
• You’re moving to Spain due to a job offer or relocation
• You have an employment contract with a Spanish company
• If you’re a company director, you must own less than 25% of the company shares
• Your main economic activity takes place in Spain (foreign income must be less than 15% of your total)

❌ Who Is Excluded?

• Self-employed workers
• Professional athletes
• Directors with significant ownership (>24%)

📝 How to Apply for the Impatriates Tax Regime

You must apply within 6 months from your Social Security registration date in Spain.
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
   • Employment contract with a Spanish company

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
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