Where taxpayers get caught out
The six-month deadline is strict. Many people discover the regime after starting work and miss it. Once the deadline passes, the regime cannot be obtained for that move.
Who can apply
| Situation | Eligible since 2023 reform |
|---|---|
| Employees of a Spanish or foreign employer moving to Spain | Yes |
| Company directors (with limits on shareholding in some cases) | Yes |
| Entrepreneurs in innovative activities | Yes, subject to accreditation |
| Highly qualified professionals for start-ups or R&D | Yes |
| Remote workers employed abroad | Yes, in many cases |
| Spouse and children moving with you | Yes, if conditions are met |
How income is taxed
Under the regime, you are a Spanish tax resident but taxed under non-resident rules: employment income, wherever paid, is taxed at 24% up to 600,000 euros and 47% above. Dividends, interest and gains are taxed at the savings rates (from 19%), and most foreign-source passive income is not taxed in Spain. Wealth tax applies only to Spanish assets, and the modelo 720 is not required.
How to apply
File the modelo 149 within six months of the start date in Spanish social security, or of the equivalent document for those who remain in a foreign system. The tax agency issues a certificate that you give to your employer so withholdings are applied at 24%.
Is it always better?
Not always. Lower earners can pay less under the ordinary scale, and the regime does not allow most personal deductions. Families with large foreign investments usually benefit most. See the ordinary income tax rates and tax residence.
Remote workers and nomads
Holders of the digital nomad visa can often apply. See digital nomad tax and moving to Spain.
An illustrative example
Based on situations we commonly see; not a specific client. A Dutch software engineer moved to Palma to work remotely for her Amsterdam employer, with a salary of 140,000 euros and a large share portfolio. We filed the modelo 149 within the deadline; her salary was taxed at 24% and the dividends from her portfolio were not taxed in Spain during the regime.
How Castell.tax can help
We plan moves to the Balearic Islands before they happen: residence date, the Beckham regime, pensions, investments and assets abroad, coordinating with your adviser at home. Then we file your first Spanish returns. See our moving to Spain service or contact us for a planning meeting in English or German.
This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.
Not sure what you owe? Ask before the deadline
Send us your situation or the letter you received. A tax adviser will tell you what applies, what it could cost and what to file.
Frequently asked questions
What is the deadline to apply?
Six months from your registration with Spanish social security or equivalent.
How long does the regime last?
The year you become resident and the following five years.
Can my family benefit?
Since 2023, spouse and children moving with you can also qualify under conditions.
Do I file the modelo 720 under the regime?
No, beneficiaries are not required to file it.