Spain | Recent developments and the current state of play of Spain's Beckham Law

On 6 December 2023, the Spanish government issued Royal Decree 1008/2023 that revised the Personal Income Tax Regulations and changed the "impatriate" regime. This royal decree aims to adapt the Personal Income Tax Regulations to the changes introduced by the Start-ups Law and clarify issues raised by it.

For further background information, see our recent Insight.

The text specifies the new cases where taxpayers can use the special regime for impatriates. In particular:

• "Entrepreneurial activity" refers to an innovative activity or economically significant activity in Spain, with approval from the National Innovation Company (ENISA) and authorisation for business residence before relocation.
• Highly qualified professional refers to a professional who meets the requirements of Law 14/2013 before relocation.
• Criteria have been established to determine when training, and research and development and innovation (R&D&I) activities are conducted under to Law 14/2013 and when the taxpayer has a residence permit before relocating to Spain.
• It is important to note that the period given to family members of a taxpayer, who are subjected to the special regime, to move to Spanish territory is six months. This period will start from the entry date into Spanish territory or from the beginning of the calculation in the case of elderly taxpayers.

The waiver and exclusion regime now includes spouses and parents of children, and children of the taxpayer. Individual waivers and exclusions will generally be applied, except when a collective exclusion may be necessary.

It also outlines the additional documentation required for new access cases to the impatriate regime.

On 15 December 2023, the ministerial order was issued along with form 149 and form 151 for taxpayers to apply for the impatriate regime and file their tax returns. In this regard, taxpayers who choose the special regime due to the new circumstances established by the Start-ups Law can now submit their applications within the deadlines set by the Personal Income Tax Regulations.

Please get in touch with your usual Osborne Clarke contact or one of the experts below if you have any queries or would like to discuss further.