Effective from January 1, 2023, following the enactment of Law 28/2022, of December 21, which promotes the startup ecosystem, certain amendments have been introduced to the special tax regime for relocated employees under the Personal Income Tax (PIT) (commonly known as Inpatriates’ regime or the “Beckham Law”). These amendments have also been further clarified by the corresponding changes to the PIT Regulations, introduced through Royal Decree 1008/2023, dated December 5, 2023.
The main amendments to this special regime are as follows:
1. The requirement of not having resided in Spain prior to the move has been reduced from 10 to 5 years for those wishing to opt for the regime.
2. The scope of the special tax regime has been extended, under certain conditions, to new categories of individuals previously not included, specifically:
a. Remote Workers: Commonly known as “digital nomads.”
b. Entrepreneurs: They must carry out an entrepreneurial activity that is innovative or of special economic interest to Spain, and must have a favourable report issued by ENISA.
c. Professionals: Highly qualified professionals providing services to startups or engaged in activities related to training, research, development, or innovation, provided that their remuneration for such activities represents more than 40% of their total business, professional, and employment income.
3. The regime now allows, under certain conditions, the inclusion of the spouse and children under the age of 25 (or any age in the case of disability) of the relocated individual, who will be considered the main taxpayer, , while the family members will be associated taxpayers linked to the main taxpayer for the applicable periods of the regime.
4. The limitation on the maximum allowable shareholding for directors of entities wishing to opt for the special tax regime has been removed, except in the case of asset-holding entities, where the director cannot have a shareholding equal to or greater than 25% in order to qualify for the regime.
