New interpretation of the Beckham Law: impact on income from primary residences

The Madrid High Court of Justice introduces a change in the interpretation of the imputation of income for the habitual residence of a worker posted to Spain and covered by the special scheme for non-residents.

The recent decision of the High Court of Justice (M 5575/2024) establishes that the tax treatment of the habitual residence, for those workers who have moved to Spanish territory and have opted for the special regime for non-residents, must follow the general personal income tax regime.

Regardless of whether the special taxation regime of article 93 of the Personal Income Tax Law is chosen, the exemption to the imputation of income for permanent residence contained in article 85 of the Personal Income Tax Law must be applied, favoring the attraction of international talent to Spain. 

Therefore, this type of taxpayers should not declare an imputation of real estate income for the habitual residence of their property located in Spain, unlike the criterion applied by the Spanish Tax Agency when considering them as non-residents.