Spanish tax inspections and investigations into non-residents and foreign property owners are unfortunately becoming more common, therefore we have strengthened our tax investigations team to assist our clients should they be subject to a Spanish tax dispute.
The Spanish tax office’s (Agencia Tributaria – AEAT) Annual Tax and Customs Plan shows that the Spanish tax authorities are now paying close attention to international property owners by conducting an unprecedented number of investigations in recent years.
At Del Canto Chambers, we negotiate with the tax authorities on our clients’ behalves, which might involve going through the tax courts, or might require going to the Supreme Tribunal.
As London’s go-to Spanish tax and legal firm, we at Del Canto Chambers can offer advice on local taxes, fees for the private use of public property, and service charges. We stand by our clients´ side during tax inspections, claims and any disputes that may arise, and advise on procedures regarding cadastral values and comparisons of real estate values.
The tax authorities in Spain are increasingly carrying out tax investigations and imposing fines on non-residents and foreign nationals who own or have historically owned properties or businesses in Spain, as investigations can go back four years. The Spanish Revenue Office has also been working with other EU authorities to broaden the scope of some of their investigations and implement cross border debt collection activity.
Agencia Tributaria Spanish tax investigations into non-residents can be triggered by unusual activity or can be conducted at random and will look to verify that tax obligations have been correctly complied with, see if any facts regarding tax obligations have been ignored by the tax authorities or check the accuracy of filed tax returns.
If a non-resident taxpayer disagrees with a tax assessment issued by the tax inspection department as a result of a tax inspection, they may file an appeal firstly with the economic-administrative tribunal, and if the appeal is not upheld by the tribunal, with the courts.
Our Spanish tax and legal experts are able to negotiate with the Spanish tax authorities on your behalf, contest claims for outstanding taxes and suggest the best course of action.
Del Canto Chambers’ dual-qualified, multilingual tax lawyers have handled over 500 complex cases from Europe, the Middle East, Latin America, and Asia. Discerning London-based and international clients, corporations, solicitors, and tax advisors count on our expertise.
You can more about what clients have to say, about working with Del Canto Chambers here below.
The Beckham Rule is a special Spanish tax regime for expatriates. It allows qualifying individuals to pay a flat tax rate on employment income and to be treated as non-residents for certain other tax purposes.
Any individual who moves to Spain for professional reasons and has not been tax resident in Spain during the five previous tax years may apply. This includes employees, remote workers, directors, and certain entrepreneurs.
Qualifying income is taxed at a flat rate of 24% up to €600,000. Income exceeding that threshold is taxed at 47%.
You must not have been considered a tax resident in Spain during the five tax years immediately preceding your relocation.
Your move to Spain must be for genuine employment or professional reasons, such as:
Holding an employment contract with a Spanish or foreign companyWorking remotely from Spain under a Digital Nomad Visa
Acting as a highly qualified professional or entrepreneur conducting a business activity in Spain
Serving as a director of a company, provided that—if the company is asset-holding—you hold no more than 25% of its shares
You must apply for the regime within six months of registering with the Spanish Social Security system (Seguridad Social). This deadline is strictly enforced.
The regime applies for a total of six tax years: the year you become a Spanish tax resident and the following five full years.
The regime applies for a total of six tax years: the year you become a Spanish tax resident and the following five full years.
Under the Beckham Rule, all employment and professional income is taxable in Spain, regardless of where it is earned. However, income from non-Spanish sources—such as interest, dividends, investment income, and capital gains—is not subject to Spanish tax.
You are only subject to Wealth Tax and Solidarity Tax on assets located in Spain. Foreign assets are excluded from the Spanish tax base during the six-year period.
Your spouse and dependent children under 25 (or of any age if legally disabled) may also benefit from the regime, provided they meet the requirements and file separate applications.
If you move to Spain to act as a director, you may apply regardless of your shareholding. However, if the company is an asset-holding entity, your ownership must not exceed 25%.
If you cease to be tax resident in Spain before completing the six-year period, you will automatically lose the benefits of the regime. From that point onward, you will be taxed under the general Spanish tax system, which includes progressive rates and worldwide income taxation.
Del Canto Chambers has a specialised team ready and eager to support you to apply for Spanish nationality. If you are interested in applying and would like to know if you are eligible, we would be delighted to help you.
Del Canto Chambers specialists are constantly up to date with new legislative changes and aware of any Spanish tax and legal implications. Contact our Spanish legal and tax specialists to find out the best tax planning and corporate structures in your circumstances.
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