Your International Tax Attorney in Spain

Under Spanish domestic law, spending more than 183 days in Spain during a calendar year is one test of Spanish tax residence, but it is not the only one. Residence may also arise where the main centre or base of an individual's economic interests is in Spain. Spanish law also contains a rebuttable family presumption where the individual's non-separated spouse and dependent minor children habitually reside in Spain. Where two countries simultaneously claim residence, the applicable double tax treaty may contain separate tie-breaker rules.

Spain's special inbound tax regime under Article 93 of the Spanish Personal Income Tax Law allows certain individuals who become Spanish tax resident following a qualifying relocation to elect for a special method of taxation. Depending on the circumstances, qualifying cases can include employees, international remote workers, certain company directors, entrepreneurs and qualifying professionals. The regime applies for the tax year in which Spanish tax residence is acquired and the following five tax years, provided the statutory and procedural requirements are met.

No. The Beckham Law should not be understood as a blanket exemption for foreign income. The Spanish tax treatment depends on the category and source of each item of income and on the specific rules of Article 93. Importantly, employment income obtained by the taxpayer during application of the regime is generally deemed to be Spanish-source for these purposes. Foreign investment income, companies, professional activities and other assets therefore require separate analysis rather than applying a general "foreign income is tax-free" rule.

Not automatically. A US LLC's disregarded-entity or partnership treatment is a US tax classification. Spain analyses the entity under its own rules and can reach a different conclusion depending on its legal and economic characteristics. This mismatch can create Spanish tax liabilities, reporting obligations or double-taxation issues for people who move to Spain while operating through a US LLC. The specific entity therefore needs to be reviewed rather than assuming that Spain follows its US classification.

It can. Moving to Spain while continuing to manage or make key decisions for a foreign company may create Spanish corporate-tax issues in addition to your personal tax position. Depending on the facts, questions can arise around the company's place of effective management, corporate tax residence or the existence of a permanent establishment in Spain. The company and the individual therefore need to be analysed separately.

Non-residents are generally subject to Spanish tax on Spanish-source income under the Non-Resident Income Tax rules. This can include rental income, imputed income from Spanish property, capital gains and certain Spanish-source investment income. Rates, deductions and filing obligations vary depending on the type of income and the taxpayer's country of tax residence.