We have been receiving numerous consultations concerned with non-sense rumors on the abolition of the Beckham Law. For those in the know .- Regimen especial para Trabajadores Desplazados, as per Title X on Special Tax Regimen, Section 5th, article 93 of the Spanish Income Tax Law (IRPF).
First things first, the Special Regime for expatriates moving to Spain as regulated in the Spanish Income Tax Act (IRPF) section 93 or Beckahm Law, is not been abolished. There is an amendment being proposed in the 2010 Budget, which includes a limitation for new applicants earning more than 600,000 Euros pa and moving to Spain after 1/1/2010.
The new applicants earning more than 600,000 Euros a year will be taxed according to the general rules up to 43%. This is all. If you are not in this category, nothing changes in the application of this special regimen. If you are making 600k plus pa and are already in Spain, congratulations. If you are planning to move to Spain, do it before 1/1/2010.
Therefore, and let me repeat it, nothing in the legislation as it stands is affecting existing taxpayers under this regime or those qualified applicants moving to Spain by 31st December 2009. So, if you or your client is thinking in becoming Spanish Resident under this rule, hurry up!
Since my times in Deloitte UK, when we were auditing Manchester United and Beckham was still considering the move to Real Madrid, I have been very involved with this legislation and publishing on this particular matter. I follow it very closely and will continue doing so until final approval. Keep watching this space.
The amendment is in line with the efforts of all the Tax authorities worldwide to increase their revenue!
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