Important tax reduction for new Spanish residents
What is the regulation for new residents?
The special regulation for new residents- also known as the Beckham Act- is a very advantageous tax system offered to new Spanish tax residents with a comfortable income.
It allows taxpayers to be taxed at the fixed rate of 24% rather than according to the progressive plan of the Personal Income Tax (IRPF).
Who benefits?
If due to an employment contract or the acquisition of the administrator status, you come to settle in Spain for the first time in 10 years, you will benefit from the tax reduction.
How can you be taxed under this new regulation?
It is not enough to fulfill the conditions to automatically benefit from the new regulation.
If you are eligible and make a certain level of income, you will need to “opt in” for the plan with the tax administration.
How long is it applied?
The tax scheme applies to the year in which the taxpayer opts-in, and for the following 5 years.
What is the tax rate?
(dividends, interest, capital gains, etc.) between 19% and 23%
Call our tax specialists to:
- check if you are eligible
- ensure that the scheme is the most advantageous solution for you
- opt-in at the tax administration
Contact us to find out more
Madrid: +34 91 188 04 93 / Barcelona: +34 93 224 01 99
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