Novelties on the Beckham Regime

On December 15th, the Spanish Official Gazette (BOE) published a Ministerial Order numbered HFP/1338/2023 (hereinafter referred to as the "Ministerial Order"), approving the two key forms related to the special regime for workers, professionals, entrepreneurs, and investors relocated to Spanish territory, commonly known as the "Beckham Regime". We previously discussed this in detail in our blog article titled "Beckham Law".

Specifically, form 149 concerning the communication opting to be taxed under this regime and form 151 regarding the income tax declaration for taxpayers under the special regime, have been approved.

I. Updates from the Ministerial Order

The Ministerial Order serves as a complementary regulation to Royal Decree 1008/2023, which amended the Personal Income Tax Regulations (hereinafter the "IRPF Regulations"), introducing the special income tax regime. 

This new regulation introduces changes that affect the content of forms 149 and 151, consolidating their use for the aforementioned purposes. 

II. Form 149 

This special IRPF form reaffirms its stability in the tax system and becomes the only authorized form for requesting the special regime, which must be submitted electronically in all cases.

For a taxpayer to qualify for this regime, they must have registered with the Censo de Obligados Tributarios (Taxpayer Registry) prior to the application. This is a sine qua non condition. 

In addition, the application must be submitted individually, and there is no provision for simultaneous communication of the option by the principal taxpayer and associated taxpayers (spouse, descendants,etc). 

Regarding the maximum notification period for choosing the option, a 6-month period applies for both the principal taxpayer and associated taxpayers. However: 

(i) For the principal taxpayer, the period starts when the hiring company in Spain registers them with the Social Security or from the date on the documentation proving the maintenance in the Social Security system of the country of origin or, in the event that the registration with Social Security is not mandatory, from the date of commencement of the activity stated in a supporting document. 

(ii) For associated taxpayers, the 6-month period starts from the date of entry into Spanish territory, and if exceeded, the period applicable to the principal taxpayer will be enforced.

In the case of taxpayers who established their tax residency in Spain in the 2023 tax period due to their arrival in Spanish Territory in 2022 or 2023, but before the date of the entry into forces of the regulations (i.e., before December 16, 2023), the deadline is 6 months from this date, unless the IRPF Regulations provide for a longer period. 

Finally, opting out of the special regime will also be done by submitting this form during the months of November and December, and exclusion from the regime will be done by submitting with 1 months from the failure to meet the conditions that led to the application of the regime. In both cases, associated taxpayers do not need to communicate it to the Tax Agency when the principal taxpayer has already done so. 

III. Form 151

Taxpayers under the Beckham regime must file form 151 to declare income for income tax purposes. The deadline is the same as for taxpayers under the general tax regime, i.e., between April and June of the subsequent calendar year. 

When the return results in an amount to be paid, the deadline for direct debit of the payment will be five days before the deadline for filing the tax return. In other words, by June 25th,  the deadline for that tax period is June 30th. 

If you want to know more about the tax implications of the novelties on the Beckham Regime, Gentile Law is here to assist you. 

Tax Department

abogados@gentile.law

+34 914 354 519