T he new Beckham Law offers an improved version of the old scheme applying to digital nomads and remote workers.
On 1 January 2023, Law 28/2022, of 21 December, on the promotion of the start-up ecosystem, commonly known as the Startups Law, came into force.
This regulation, in addition to introducing important changes to the innovation investment regime, includes support and promotion measures for start-ups as well as the establishment in Spain of entrepreneurs and remote workers, also known as digital nomads.
As part of the measures adopted by the new regulation, the special tax regime applicable to posted workers under Article 93 of the Personal Income Tax Law, commonly known as the Beckham Law, is also modified.
The new Beckham Law
But before explaining the changes, what are the advantages of this scheme?
- Under the Beckham Law become a Spanish resident;
- Enjoy a flat 24% tax rate for wages earned over the first six years;
- Monies obtained abroad are not taxed in Spain;
- No need to file other tax returns.
With the legislative changes included in the Startups Law, not only workers posted to Spanish territory will be able to benefit from the Beckham Law, but professionals, entrepreneurs and investors will also be included in this regime.
The new Beckham Law continues to provide for a duration of five years, although the period for which the applicant must not previously have had tax residence in Spain has been reduced from ten to five years.
Another of the new features affects the conditions to be met by applicants, since, whereas previously only employees and administrators could apply for the Beckham Law, the new requirements open the door for remote workers of foreign companies and digital nomads, among others, to also benefit from this special regime.
Another of the outstanding advantages of this new formulation of the Beckham Law refers to the possibility that the applicant’s spouse, as well as their children under the age of 25, may also benefit from this special regime.
Despite the above, the requirements applicable to apply for this new form of the Beckham Law applicable to remote workers and digital nomads are not yet known as its implementing regulations have not yet been approved, however, we expect the Spanish Tax Agency to publish the new requirements shortly.
As soon as they are published we will share them here with you.