Commonly known as the "Beckham law", the Spanish Special Expat Regime is regulated in the Spanish Personal Income Tax Law (hereinafter, SPITL). According to its article 93, natural people who acquire their tax residence in Spain as a result of being posted to Spanish territory may opt for assessment under Spanish Non-Residents Income Tax rules instead of under the PIT rules for resident individuals provided that certain conditions are met. One if its advantages is the application of a flat tax rate of 24% on employment income along with the benefit of being taxed only on Spanish sourced income.
Gonzalo Canet, tax advisor at B Law and Tax, provides with expert advice on the applicable benefits from the Spanish tax Law on heritances and donations.
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The Spanish Law establishes a Special Regime for companies with a share capital of at least EUR 5 million, under which the Corporate Tax rate is 0%. This Special Regime is called SOCIMI and it has its own regulation.
This is an optional regime. The option to be subject to the SOCIMI regime must be agreed by the General Shareholders Meeting and must be communicated to the Tax Agency Authorities corresponding to the company's tax domicile, before the last three months prior to the conclusion of the relevant tax period.
Form 232 is the informative return on transactions with related individuals or entities. Taxpayers of Corporate Income Tax and Non-Resident Income Tax which act through a permanent establishment, as well as the entities under the system of attribution of income registered abroad with presence in Spanish territory, that perform certain transactions with related individuals or entities may have this reporting obligation.