Digital nomads have six months to take advantage of the Beckham Act

The Beckham Act: Six-month deadline for applying for the benefits

The Order HFP 1338/2023 of 13 December (published in the Official State Gazette on 15 December) approves Form 151, the Personal Income Tax Return for taxpayers under the special scheme applicable to professional workers, entrepreneurs and investors posted to Spanish territory, as well as Form 149, the Notification for exercising the option to be taxed under that regime. Self-employed individuals may also benefit from the advantages offered by the Beckham Law.

The immediate family – comprising a spouse and any child under the age of 25 – of digital nomads will be able to benefit from the advantages offered by the Beckham Act.

In accordance with the aforementioned order, a period of six months from the date of the order’s approval is granted in which to apply for the benefits offered under this scheme. Let us recall the requirements for qualifying under the Beckham Act are:

• Provide evidence that you have not been a tax resident in Spain during the five years prior to your move
• To prove the date of entry into Spain
• Provide a supporting document from the employer confirming the employment relationship with the taxpayer, the start date of the employment as recorded in the social security register, and the approximate duration of the employment relationship.
• That the move to Spanish territory takes place, either in the first year of the scheme’s application or in the preceding year, as a result of any of the following circumstances:
  • As a result of the signing of an employment contract, with the exception of the special employment relationship applicable to professional sportspeople, as regulated by Royal Decree 1006/1985 of 26 June.

This condition shall be deemed to have been met when an employment relationship – whether ordinary, special (other than that indicated above) or statutory – is entered into with an employer in Spain, or when the posting is ordered by the employer and a posting letter exists.

With regard to what has been stated above, we must bear in mind that the DGT Binding Ruling 0777/19 states that, if a lengthy period elapses between the enquirer’s move to Spain and the start of the employment relationship, this would constitute a breach of the requirement laid down in the Personal Income Tax Act, Article 93.31(b), and shall not be eligible to opt into the special scheme.

Under the aforementioned legislation, taxpayers who are granted permission to benefit from the Beckham Law will be able to be taxed at a flat rate of 24% for the first five years of their residence in Spain.

Emma Hakobyan

Lawyer