On June 10th, 2005 the Spanish government approved Royal Decree 687/2005 implementing the Personal Income Tax (hereinafter, PIT) regulations in relation to article 9.5 of the Spanish PIT Law, which is commonly known as the "Beckham law" and regulates the procedure to apply for the new Spanish tax regime for expatriates in force since January 1st, 2004.

Spanish Holding Company

Spanish Law 43/1995 introduced a special tax regime applicable to Spanish holding companies creating one of the most competitive holding regimes in the world. The stability that this special regime has experimented over these last years makes it a very reliable vehicle of investment. This fact is even enforced by the wide range of treaties that Spain has undersigned in the last years. There are several interesting features about the Spanish holding company (called in Spanish “Entidad de Tenencia de Valores Extranjeros” – ETVE – ) which may be summarised as follows.