BackThe main topic of this article is teh Beckham Law retroactively . The legislator has finally resolved the uncertainty of displaced workers transferred to Spain in 2022 and 2023 to engage in entrepreneurial or high-skilled activities, according to the Startup Law of December 2022. These professionals had the option to avail themselves of the Beckham Law, a special tax regime that can benefit both Spaniards abroad and nationals of other countries who want to come to Spain, but the legislator had not yet developed the necessary regulations.
Now, through the approval of the new Personal Income Tax Regulation, their situation is regularized, allowing them to retroactively benefit from the Beckham Law. Taxpayers who establish their tax residence in Spain in 2023 as a result of their relocation in 2022 or 2023 will have six months to opt for this regime once the Order establishing the application model is approved, still pending publication.
The Startup Law, also known as the Emerging Companies Law, expanded the categories of beneficiaries of the Beckham Law with the aim of making the arrival in Spain more attractive from a tax perspective and promoting the attraction of talent.
This regulation allowed entrepreneurs, highly qualified professionals in services for startups, engaged in training, research, development, or innovation activities, business administrators, or digital nomads (teleworkers) to avail themselves of this regime. Until now, individuals who moved to Spain in the current year could not benefit from the Beckham Law due to the lack of development of the necessary Regulation.
With the approval of this Regulation, the Administration will issue a document certifying the taxpayer’s choice to apply this special regime within a maximum period of ten business days, provided that all required information has been provided.
The Beckham Law, so named because footballer David Beckham was one of the first to benefit from it, allows these taxpayers to be taxed through the Non-Resident Income Tax (IRNR) instead of the Personal Income Tax (IRPF), with a fixed rate of 24% for income up to 600,000 euros and 47% for gains exceeding that threshold.
The Royal Decree addresses several innovations introduced by the General State Budget Law for 2023. It adjusts the Personal Income Tax Regulation, raising the income threshold for the obligation to file the declaration from 14,000 to 15,000 euros in cases of multiple payers. It also establishes the obligation to file the IRPF declaration for all individuals who have been registered as self-employed or in the Special Social Security Regime for Maritime Workers at any time during the tax period.
Furthermore, the IRPF Regulation is modified to establish that the withholding on income derived from the creation of literary, artistic, or scientific works will be 7% if they do not exceed 15,000 euros and represent more than 75% of the total income from economic and labor activities. Otherwise, the withholding will be 15%.
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