Beckham Law Amendments in Spain

On 7 December 2023, significant amendments were made to the Personal Income Tax Regulation (RIRPF) to align it with the reforms from the Tax Law and the Law on the promotion of the start-up ecosystem. These updates are particularly relevant for entrepreneurs and highly qualified professionals working in Spain. The main changes include:

1. Access to the Special Regime:
   • The new criteria for accessing the special regime now includes entrepreneurial activities that are innovative or of special economic interest to Spain, as endorsed by a favorable report from the National Innovation Company (ENISA).
   • The definition of highly qualified professionals has been broadened to include individuals with national residence authorization, particularly those involved in training, research, development, and innovation.
2. Regulation of Withholdings and Formal Obligations:
   • New withholdings and advance payments align with the Non-Resident Income Tax regulations, ensuring proper tax compliance for international professionals.
   • Formal obligations are now clearly dictated by specific tax return forms, especially for incomes earned without a permanent establishment's intermediation.
3. Adaptation for Accompanying Relatives:
   • Adjustments to the regime's duration and the option for family members to be taxed under this regime provide more flexibility and clarity for those accompanying the primary taxpayer.
4. Waiver and Exclusion Rules:
   • The updated waiver and exclusion rules are now consistent with the latest legislative changes, offering individualized options unless collective exclusion applies.
5. Regulation of Required Documentation:
   • Clear guidelines have been established for the necessary documentation when applying this special regime, including registration with the Social Security in Spain, residence authorization, and employer-issued documents.

The 2023 RIRPF modifications aim to synchronize with recent legislative changes, easing the process for entrepreneurs and highly qualified professionals to access the special regime. It also establishes transparent procedures for tax withholdings, formal obligations, and documentation requirements, reflecting Spain's commitment to fostering a conducive environment for international talent and innovation.