One of the requirements to be able to apply the special regime for impatriated workers posted to Spanish territory (the “Beckham Law”) is that the natural person has not been a resident in Spain during the ten tax periods prior to the one in which the posting to Spanish territory occurred. The importance of fulfilling this criterion in order to apply this regime for impatriates is of the utmost significance. You can read more about the advantages that this regime provides for the taxpayer here: advantages of the impatriate regime
Ten years of non-tax residence in Spain
In relation to this period, according to the TEAC, the ten years are not viewed from date to calendar date but rather as ten years of fiscal non-residence in Spanish territory, as stated in Article 93 of the LIRPF. This was established in a case in which it was determined whether the appellant met the requirement of residence outside of Spain during the ten years prior to the posting, which was needed for the IRNR to be able to opt for applying the special tax regime.
For it to be applicable, the TEAC requires that "natural persons acquire tax residence in Spain as a result of their posting to Spanish territory, and grants the option, under the terms established by law, during the tax period in which the change of residence is carried out, and during the following five tax periods. Consequently, in order to exercise the option granted by said regime, it is necessary to have met what has been established in the aforementioned article, which is to have acquired the status of tax resident in Spain. Logically, if the taxpayer is not a resident, the option is meaningless, since in any case their taxation is subject to the IRNR regulations, without the need to request the regime that has been analyzed.” Therefore, the TEAC concludes that, “when calculating the ten years of non-residence for tax purposes in Spain, the last year in which the status of resident abroad is considered must be included in said period, even if it is the year in which the posting was to our country” (contrary to the strict interpretation held by TEAR).
GD Global Mobility recommends a specific and detailed study of each case in view of the application of the special Spanish tax regime for impatriates. Our professionals can advise you on the tax benefits that you can apply with regards to income obtained in Spain.
How do you compute the ten years of non-residence for tax purposes in Spain, which is needed in order to apply for the special tax regime for impatriates? Criteria given by TEAC
