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Expats with working contract

If you are an expat and come to Spain due to a working contract, our team will give you support throughout the

the whole process offering legal and tax advice.

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There are some unique situations concerning salary income that  you should be taken into consideration. 

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Spanish residents may be entitled to a tax allowance with a limit of 60.100,00 € in their income tax declaration when working temporarily for a company abroad if:

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  • The work is developed physically carried out abroad.

  • The employer is a foreign business or a permanent foreign establishment of a Spanish firm.The employment must be carried out for a company non resident in Spanish territory.

  • In the country where the work is performed there is an identical or similar tax to the Spanish Personal Income Tax.

 

Awareness of the Special Tax Regime – called the Beckham Law – is essential. This regime has a special tax scale that can be applied for up to six years (the year of arrival in Spain and the following five tax years) and can mean significant tax savings (see Beckham Law section).

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However, this special tax regime system is not always the best option. It will depend on the income level and whether if you also have income sources from outside Spain such rentals, dividends, capital gains, and so forth. If, after a thorough  the analysis, the Special Tax Regime is not deemed the best option for you, you will be taxed under according to the Spanish Personal Income Tax (IRPF).

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We aim to ensure that not only are your tax obligations met, but that the best regime for your case has been chosen, which will work for you on both a short- and long-term basis. 

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