Find out how the Query V0009-24 of the DGT clarifies the application of the special regime of the Beckham Law for displaced workers who create companies in Spain.
The Query V0009-24 of the Directorate General of Taxation (DGT) addressing a specific situation in which a worker is displaced under the special regime of the Beckham Law you decide to establish a company in Spain and assume the position of administrator. This article discusses the tax implications of this decision and how it applies to the special treatment in this context.
Context and Applicable Regulations
The consultant, a citizen of the United Kingdom, became a tax resident in Spain in 2023 under the special regime of the Beckham Law. Later, he formed a limited company in Spain and assumed the position of manager, halting their working relationship before. The relevant legislation includes:
Conditions to Maintain the Special Regime
Article 93 of the LIRPF establishes that the displaced persons to Spain can opt to be taxed as non-residents, provided that certain conditions are met:
- Residence: Not have been resident in Spain during the previous five years.
- Displacement: Must be the consequence of a contract of employment or acquisition of the status of administrator.
- Income: Do not get income through a permanent establishment in Spain.
Application of the Query V0009-24
In this query, we evaluate whether the client can keep the special regime after the termination of their employment relationship and to assume the post of manager in a new company. The DGT concludes that, given the brief period between the eesc and the new employment relationship, and subject to compliance with the requirements of article 93 of the LIRPF, the special regime will continue to apply.
Key Considerations
- Business Activity: The consultant must ensure that its activities as administrator did not consider yields obtained through a permanent establishment.
- Additional Revenue: If you provide additional services to the company other than the administrator, these need to be evaluated to determine if they fail to meet the conditions of the special regime.
Tax Benefits
Keep the special scheme allows the client to benefit from a tax favorable, paying taxes only on the income earned in Spain at a fixed rate of 24% up to 600,000 euros and 47% for the excess.
Comparative Taxation
The benefit of the Law Beckham, entrepreneurs can enjoy a fixed rate of 24% up to 600,000 euros and 47% for the excess, in place of the progressive rates of income TAX which can reach up to 45%. Without this regime, the non-residents are taxed at 24% on all of their income from Spanish source, to the exclusion of all foreign income and who have no access to deductions or tax benefits available to residents.
Contact us for specialist advice
In our boutique legal, fiscal, we are prepared to help you understand and take advantage of the benefits of the special regime of the Beckham Law. We offer a full service tax consulting, ensuring that you comply with all regulations and optimices your tax situation.
The query V0009-24 DGT provides clarity on the application of the special regime of the Beckham Law for entrepreneurs that constitute new companies in Spain. It is a valuable opportunity to optimize your tax situation and benefit from the advantages offered by the Spanish legislation.
Now you can start to optimize your tax benefits today! Book your consultation with us and let our experts guide you at every step to establish your business in Spain and across the EU.
