Moving to Spain or hiring international talent? Spain’s Tax Agency tightens scrutiny on the Beckham Law

This regime allows individuals who move to Spain for work to be taxed only on their income earned within Spanish territory for a maximum of six years, at a fixed rate of 24% up to €600,000, and 47% on any amount above that.

It’s a highly attractive tax benefit for qualified professionals, executives, and even digital nomads.

The Spanish Tax Agency has detected a rise in fraud and irregularities related to the use of this regime. What kinds of practices are under investigation?

• Fake or simulated employment contracts
• Shell companies with no real activity, created solely to justify relocation
• Transfers that do not reflect genuine business needs

Although only 0.5% of cases have been reviewed in the past ten years, a new wave of stricter inspections is now expected.

If you’re a company considering hiring someone from abroad, it’s important to:

• Ensure the relocation is genuine and properly justified.
• Have a legally valid and well-documented employment contract.
• Prepare documentation that proves actual business activity in Spain.

If you’re a professional relocating to Spain, you should know that:

• You must not have been a Spanish tax resident in the last five years.
• You must submit your application (Form 149) within six months of registering with the Spanish Social Security system.
• Your employment must comply with the legal requirements of the regime.

At ETL ILIA, we’ve advised numerous companies and professionals who apply for this regime.

Our recommendation is clear:

• Plan ahead before taking action.
• Carry out a preliminary eligibility check.
• Make sure the entire process is properly documented and aligned with the Tax Agency’s requirements.
• Consult a tax advisor specialised in the Beckham Law to clarify any doubts.