1. Basic concepts and legal framework

Which taxes does a non-resident owning property in Spain pay?

At least four groups of taxes arise over the life cycle of the property:

(i) On acquisition: Transfer Tax and Stamp Duty (ITP-AJD) if the property is second-hand, or Value Added Tax (VAT) plus Stamp Duty (AJD) if it is a new home delivered by the developer.

(ii) During ownership: the annual Real Estate Tax (IBI); deemed income under Non-Resident Income Tax (IRNR) where the property is not let; Wealth Tax under limited liability if the assets in Spain exceed the exempt amount; and, where applicable, the Temporary Solidarity Tax on Large Fortunes (ITSGF), which only produces tax where the taxable base exceeds EUR 3,000,000 after the EUR 700,000 exempt amount (that is, with net assets in Spain above roughly EUR 3.7 million).

(iii) On disposal: IRNR on the capital gain; the 3 per cent withholding the buyer applies to a non-resident seller; and the municipal capital gains tax (IIVTNU).

(iv) On inheritance or gift: Inheritance and Gift Tax (ISD) under limited liability, payable on property located in Spain.

On top of this, where the non-resident lives in a State with which Spain has a double taxation treaty (DTT), the treaty’s allocation of taxing rights applies; for real estate it gives taxing rights to the State where the property is located (Spain), with the State of residence eliminating double taxation.

Which rules govern the matter?

Five blocks of legislation:

(i) IRNR: Royal Legislative Decree 5/2004, of 5 March, approving the consolidated text of the Non-Resident Income Tax Act (hereinafter, TRLIRNR), and its Regulations.

(ii) Wealth Tax: Law 19/1991, of 6 June, on Wealth Tax (LIP). ITSGF: article 3 of Law 38/2022, of 27 December.

(iii) ISD: Law 29/1987, of 18 December, on Inheritance and Gift Tax (LISD), and its Second Additional Provision, introduced by Law 26/2014 and amended by Law 11/2021, on non-residents’ access to regional rules.

(iv) ITP-AJD: Royal Legislative Decree 1/1993, of 24 September, approving the consolidated text of the ITP-AJD Act.

(v) VAT: Law 37/1992, of 28 December, on Value Added Tax.

To these must be added the regional rules on devolved taxes (ITP-AJD rates; Wealth Tax and ISD exempt amounts, scales and tax credits), municipal by-laws and the DTTs signed by Spain.

Are “non-resident” and “foreigner” the same?

No. Non-resident status is determined by applying the criteria of article 9 of the Personal Income Tax Act (LIRPF): presence of more than 183 days, main centre or base of business activities or economic interests, and the family presumption. A Spanish national may be non-resident for tax purposes; a foreign national may be a Spanish tax resident. We have developed this in the Frequently asked questions about Spanish tax residence in this Spanish Tax Journal.

2. Acquiring the property

Which tax is paid on the purchase: ITP or VAT?

It depends on the type of property and the seller.

Second-hand home or transfer between individuals: ITP applies (onerous transfers). In common-regime territory, rates are set by each Autonomous Community and differ significantly: for example, Catalonia applies a 10 to 13 per cent scale and a 20 per cent rate where the buyer is a large holder or an entire residential building is acquired. There are reduced rates in certain cases (main home of young buyers, disability, large families) and increased rates in some Communities. The foral territories have their own regimes.

New home delivered by the developer: VAT at 10 per cent (4 per cent for special-regime or public-promotion officially protected housing), plus AJD at the rate set by the Autonomous Community.

Commercial premises, garages or separate storage rooms: on a first delivery by a business, VAT at 21 per cent plus AJD. Second and subsequent deliveries of buildings are VAT-exempt (art. 20.Uno.22 LIVA) and subject to ITP, unless, between businesses, the exemption is waived (art. 20.Dos LIVA). Deliveries of rural and non-buildable land are also VAT-exempt (art. 20.Uno.20 LIVA).

Is there withholding when buying from a non-resident?

Yes. Article 25.2 TRLIRNR requires the buyer to withhold and pay 3 per cent of the consideration where the seller is non-resident and does not act through a permanent establishment. The withholding is paid with Form 211 within one month of the transfer.

This withholding is a payment on account of the seller’s IRNR on the gain. If the seller made a loss or the final IRNR is lower than the amount withheld, the excess may be reclaimed with Form 210. We look at this in more detail in the section on disposal.

3. Formalities before the purchase

Is an NIE needed to buy?

Yes. The Foreigner Identity Number (NIE) is essential to execute the deed, open a bank account in the name of the non-resident buyer and appear as owner in the Land Registry and the Cadastre. It is issued by police stations in Spain and by Spanish consulates abroad. The time needed varies: at a consulate, weeks to months; in Spain, weeks with an appointment.

And a Spanish bank account?

It is not compulsory, but it is highly advisable. It allows (i) paying ITP-AJD, VAT and other taxes from Spain; (ii) paying IBI and community-of-owners charges; (iii) collecting rent if the property is let; and (iv) dealing with the lender, if there is a mortgage. Opening an account as a non-resident requires a non-resident certificate and, at many banks, evidence of the source of funds under anti-money-laundering legislation (Law 10/2010).

Are a notary and Land Registry registration mandatory?

A public deed before a Spanish notary is required for the transfer to be registrable in the Land Registry. Registration does not create ownership (ownership passes through the combination of title and delivery), but it protects the buyer against third parties (article 34 of the Mortgage Act, principle of public faith in the Registry) and is in practice essential for a later sale or financing.

4. Ownership by a non-resident

What annual IRNR arises on an urban property that is not let?

The so-called deemed income from real estate. Article 13.1.h) TRLIRNR, read with article 85 LIRPF, attributes annual income to a non-resident merely for owning an urban property that is neither used in a business activity nor let.

The base is calculated on the cadastral value:

(i) 2 per cent of the cadastral value, as a general rule.

(ii) 1.1 per cent of the cadastral value where it has been revised, modified or set through a general collective valuation procedure that came into force in the tax period or in the previous ten.

The IRNR rate without a permanent establishment applies to that base:

• 19 per cent for residents of another EU Member State, Iceland, Norway or Liechtenstein.
• 24 per cent for everyone else.

The return is filed with Form 210 during the calendar year following accrual (31 December). Each property is declared separately; in co-ownership, each co-owner declares his or her share.

If the property is let, what changes?

Deemed income is replaced by tax on the rental income. The return is still Form 210, but quarterly: within the first twenty calendar days of the month following the calendar quarter in which the income accrued.

The rate is the same (19 per cent for residents of the EU, Iceland, Norway or Liechtenstein; 24 per cent for the rest). The relevant difference is that residents of the EU, Iceland, Norway or Liechtenstein may deduct the expenses necessary to obtain the income (repairs, loan interest, IBI, community charges, depreciation, utilities paid by the owner), provided their direct link to the income is proven. Residents of other States are taxed on gross income, with no deduction of expenses.

Directive (EU) 2021/514 (DAC 7), transposed by Law 13/2023, requires digital platform operators to report to the Spanish Tax Agency (AEAT) (Form 238) the amounts paid to those carrying out certain activities, including the letting of real estate. The AEAT cross-checks that information against owners’ returns.

And IBI?

It is an annual municipal tax calculated on the cadastral value. It is paid by whoever owns the property on 1 January of each year. The rate is set by each municipality within the limits of the consolidated text of the Local Finance Act. The bill is paid by direct debit or as set out in the municipal by-law.

Is the non-resident subject to Wealth Tax?

Yes, under limited liability: on assets and rights located, exercisable or to be performed in Spain. Property located in Spain forms part of the base. The EUR 700,000 exempt amount also applies to taxpayers under limited liability (art. 28.Tres LIP), by statute.

The State Wealth Tax scale reaches 3.5 per cent. Non-residents may apply the rules of the Autonomous Community where the greatest value of their assets and rights in Spain is located (Fourth Additional Provision of the Wealth Tax Act, introduced by Law 26/2014 for EU and EEA residents and extended to all non-residents by Law 11/2021). The Communities apply their own rules, with different exempt amounts, scales and tax credits; Madrid maintains a 100 per cent tax credit.

So does the difference between Madrid and the other Communities also apply to non-residents?

Yes. Applying the rules of the Community where the greatest value of the assets and rights in Spain is located means, in practice, that a non-resident whose assets are concentrated in Madrid benefits from the Madrid tax credit; with assets concentrated in Barcelona or Mallorca, not. The regional credit does not, however, avoid the ITSGF, as explained below.

And the ITSGF?

The Temporary Solidarity Tax on Large Fortunes, regulated in article 3 of Law 38/2022, applies to non-residents under limited liability. There is an exempt amount of EUR 700,000 and the first EUR 3,000,000 of taxable base is taxed at 0 per cent, so the tax arises with net assets in Spain above roughly EUR 3.7 million. The scale reaches 3.5 per cent on the taxable base above EUR 10,695,996.06.

The ITSGF is a State tax. Only the Wealth Tax actually paid is deductible from it. Therefore, where Wealth Tax is subject to a regional credit (as in Madrid), the regional credit does not neutralise the ITSGF, which falls more heavily on assets located in those Communities.

Can a non-resident apply the joint cap on Income Tax and Wealth Tax?

Article 31.Uno LIP provides that the Wealth Tax liability, added to the Personal Income Tax liabilities, may not exceed 60 per cent of the sum of the taxable bases of the latter, with a maximum reduction of the Wealth Tax liability of 80 per cent. The wording of the provision refers to personal liability.

The Supreme Court, in judgments 1372/2025, of 29/10/2025 (appeal 4701/2023), and 1402/2025, of 03/11/2025 (appeal 7626/2023), held that residence does not justify the different treatment and recognised non-residents’ right to apply that cap. The Ministry of Finance has adapted the 2025 Wealth Tax return (Form 714) to that case law and has proposed doing so in the ITSGF return (Form 718).

5. Letting the property

How is rental income declared?

With Form 210, quarterly, within the first twenty calendar days of April, July, October and January, for income accrued in the previous calendar quarter. Several items of income from the same property may be grouped in the quarter.

Which expenses can an EU or EEA resident deduct?

Those necessary to obtain the income, in proportion to the period let. The most common:

(i) Interest on loans used to acquire or improve the property.

(ii) IBI, municipal charges and community-of-owners fees.

(iii) Repairs and maintenance; not improvements, which are depreciated.

(iv) Depreciation of the property: 3 per cent per year on the higher of (a) the acquisition cost paid or (b) the cadastral value, excluding the value of the land in both cases.

(v) Utilities (water, electricity, gas) if paid by the owner.

(vi) Fees for management, advice and administration.

(vii) Insurance on the property.

If the property is let for short periods (tourist rental) with services typical of the hotel industry (periodic cleaning during the stay, change of linen, reception), the activity may be characterised as a business activity. Depending on the means and organisation, there may or may not be a permanent establishment; IRNR also taxes business income obtained without a permanent establishment (art. 13.1.b TRLIRNR). It is an area of frequent audits.

And if the owner lives outside the EU and the EEA?

No expenses may be deducted. Gross income is taxed at 24 per cent. This structural asymmetry should be taken into account in significant portfolios.

6. Disposing of the property

How much IRNR is paid on the sale?

The capital gain (difference between the transfer value and the acquisition value, adjusted for related costs and taxes) is taxed at 19 per cent, whatever the seller’s State of residence: article 25.1.f).3.º TRLIRNR sets that rate for capital gains arising on transfers of assets. The 24 per cent rate applies to other income (for example, rent or deemed income of residents outside the EU and the EEA), not to this gain.

The acquisition value includes the price paid plus the costs and taxes of the purchase (ITP, non-recoverable VAT, AJD, notary, registry, fees). The transfer value is the price received less the seller’s costs and taxes on the sale.

How does the 3 per cent withholding work?

The buyer must withhold 3 per cent of the consideration and pay it with Form 211 within one month of the transfer. The withholding is a payment on account of the seller’s IRNR on the gain. The seller must file Form 210 within four months of the transfer to self-assess the IRNR:

• If the IRNR exceeds the withholding, the seller pays the difference.
• If it is lower, the seller reclaims the excess.
• If the transfer produces a loss, the seller reclaims the full amount withheld.

Is there a main-home reinvestment exemption?

Yes, but it depends on residence. The exemption was introduced by Law 26/2014 (Seventh Additional Provision TRLIRNR) for residents of the EU and of EEA States with an effective exchange of tax information. The property sold must have been the taxpayer’s main home and the proceeds must be reinvested in another main home on the terms of article 38 LIRPF. Residents of third countries cannot apply it.

And the municipal capital gains tax?

The seller is the taxpayer (art. 106.1.b of the consolidated text of the Local Finance Act, TRLRHL). If the seller is a non-resident individual, the buyer is the substitute taxpayer and must pay the tax (art. 106.2), which is normally reflected in the price or in an agreed withholding.

Following Constitutional Court judgment 182/2021, of 26/10/2021, and the reform made by Royal Decree-law 26/2021, the taxpayer may choose between the objective base (based on the cadastral value of the land and the years of ownership) and the actual base (effective gain). Where it is shown that there has been no increase in value, the tax does not apply (art. 104.5 TRLRHL).

7. Inheritance and gift: ISD under limited liability

How is the inheritance of a property located in Spain taxed where the heir is non-resident?

Through ISD under limited liability: the property located in Spain is taxed in Spain regardless of the heir’s residence. The tax base is the value of the property acquired; the tax is calculated with the State scale or, where applicable, the regional one.

Can the non-resident heir apply regional rules?

Yes. The Second Additional Provision (DA 2ª) of the LISD, introduced by Law 26/2014 following the CJEU judgment of 03/09/2014 (C-127/12) and extended by Law 11/2021 to all non-residents, provides that, if the deceased was resident in an Autonomous Community, the non-resident heir applies that Community’s rules (DA 2ª.Uno.1.b); if the deceased was not resident in Spain, those of the Community where the greatest value of the estate’s assets located in Spain is found (DA 2ª.Uno.1.a).

What about residents of third countries? Them too?

Yes. Since Law 11/2021, DA 2ª LISD applies to all non-residents, whether or not they live in the EU or the EEA. The Supreme Court had already recognised this for residents of third countries in its judgment 242/2018, of 19/02/2018, given in State liability proceedings (liability of the State as legislator), applying the free movement of capital (art. 63 TFEU). The other substantive requirements of the regional rules (kinship, retention of the asset, where applicable) must still be met.

Which regional rules apply to an inherited property?

Not necessarily those of the place where the property is located. If the deceased was resident in a Community, that Community’s rules apply; if the deceased was not resident in Spain, those of the Community where the greatest value of the estate’s assets in Spain is located. The Community where the property is located is decisive only for gifts of real estate.

And a gift of the property?

ISD under limited liability, with access to the rules of the Community where the property is located (DA 2ª.Uno.1.c LISD). Under the State rules, the filing deadline is 30 working days from the gift (compared with six months for a transfer on death).

8. Double taxation treaties

What does the DTT say about income from real estate?

Article 6 of the OECD Model Tax Convention, reflected in Spain’s DTTs, gives the State where the property is located the right to tax income from real estate. Spain therefore keeps the right to tax rent or deemed income from property located in its territory, regardless of the owner’s residence. The State of residence must, where appropriate, eliminate double taxation using the treaty method (exemption with progression or credit).

And the gain on sale?

Article 13.1 of the OECD Model allows the State where the property is located to tax gains on its transfer. Spain taxes the gain under IRNR without the DTT preventing it. Again, the State of residence must eliminate double taxation.

And wealth?

Article 22 of the OECD Model allows the State where the property is located to tax real estate wealth. Spain applies Wealth Tax under limited liability to non-residents owning property in Spain, and the DTT does not prevent it. Other assets may be taxable only in the State of residence (for example, art. 22.4 of the DTT with Switzerland, applied by the Directorate-General for Taxes (DGT) in ruling V-1648-26, of 18/06/2026).

The real-estate-rich company clause: article 13.4 of the OECD Model.

It is an often overlooked point. Article 13.4 of the OECD Model (2017 version) allows the State where the property is located to tax gains on the transfer of shares or comparable interests deriving more than 50 per cent of their value, directly or indirectly, from real estate located in that State at any time during the 365 days preceding the transfer. The clause appears, in various wordings, in many of the DTTs signed by Spain. Under domestic law, article 13.1.i).3.º TRLIRNR taxes gains on the transfer of interests in entities whose assets consist mainly, directly or indirectly, of real estate located in Spain.

The practical consequence is that interposing a company to hold the property does not necessarily exclude Spain’s right to tax the gain on the transfer of the interests. A corporate structure without substance or valid economic reasons is not in itself a solution.

9. Structures for holding the investment

Direct ownership by an individual: advantages and drawbacks?

Advantages: simplicity; low initial cost; 19 per cent rate on income (EU and EEA residents) and on gains; access to the main-home reinvestment exemption (EU and EEA residents).

Drawbacks: tax on gross income, with no deduction of expenses, for residents outside the EU and the EEA; direct exposure to Wealth Tax under limited liability (with a EUR 700,000 exempt amount) and, where applicable, to the ITSGF; no possibility of deferring tax on income, which is taxed directly in the owner’s hands.

Spanish company (SL) owned by a non-resident: when does it make sense?

Advantages: deduction of expenses (including depreciation and financial expenses, within the statutory limits); income taxed in the company until distributed; offset of tax losses; intra-group financing possible.

Drawbacks: Corporate Income Tax at 25 per cent on profits; economic double taxation on dividend distributions (subject to the article 14 TRLIRNR exemption for EU parent companies with a qualifying holding); more demanding accounting, registry and formal obligations; if the company is an asset-holding entity (more than half of its assets not used in a business activity, art. 5.2 of Law 27/2014 on Corporate Income Tax, LIS), it loses certain tax benefits.

Foreign company holding the property: what should be considered?

Three points:

(i) Economic substance: the AEAT targets interpositions without real substance (effective management, staff, documented activity). Articles 15 (conflict in the application of tax rules) and 16 (sham transactions) of Law 58/2003, the General Tax Law, are the usual tools.

(ii) The DTT real-estate-rich company clause: if more than 50 per cent of the value of the interests derives from Spanish real estate, their transfer may be taxed in Spain regardless of the seller’s residence (art. 13.4 OECD Model and art. 13.1.i).3.º TRLIRNR).

(iii) Wealth Tax on the interests: under article 5.Uno.b) LIP, securities representing an interest in the equity of any entity, not traded on organised markets, whose assets consist of at least 50 per cent of real estate located in Spain are deemed located in Spain. The non-resident is taxed on them under limited liability, unless the applicable DTT gives taxing rights over that wealth only to the State of residence.

SOCIMI: when does it make sense?

The listed real estate investment company (SOCIMI), regulated by Law 11/2009, has a specific regime (art. 9): 0 per cent Corporate Income Tax rate; a 19 per cent special levy on dividends distributed to shareholders holding 5 per cent or more who are exempt or taxed at less than 10 per cent; and a 15 per cent special levy on undistributed profits deriving from income not taxed at the general rate.

The regime makes sense for property portfolios of a certain size (minimum share capital of EUR 5,000,000 and listing on a regulated market or multilateral trading facility), with a long holding period and a policy of systematic dividend distribution. It is not a vehicle for a single residential property.

10. Special cases

Tourist rental

Three issues meet in tourist rentals.

IRNR: if services typical of the hotel industry are provided (periodic cleaning during the stay, change of linen, reception, laundry), the income may be characterised as business income; depending on the means and organisation, there may or may not be a permanent establishment. If only maintenance and cleaning between stays are provided, it remains income from real estate capital.

VAT: letting a home without supplementary services typical of the hotel industry is VAT-exempt (art. 20.Uno.23 LIVA). With hotel services, it is subject to and not exempt from VAT, at 10 per cent, and the owner must register as a business or professional.

Regional and municipal rules: most Communities and large municipalities have specific regulations (licences, registers, maximum periods) on top of the tax rules.

Gibraltar: residence of Spanish nationals and the list of non-cooperative jurisdictions

The International Agreement on taxation and the protection of financial interests between the Kingdom of Spain and the United Kingdom in respect of Gibraltar, signed on 04/03/2019 and in force since 04/03/2021 (BOE-A-2021-3947), provides that Spanish nationals who move their residence to Gibraltar after its signature are treated as tax resident exclusively in Spain (V-1310-22, of 09/06/2022). For legal entities, it draws certain Gibraltar entities with qualifying links to Spain into Spanish residence.

Gibraltar was removed from the list of non-cooperative jurisdictions by Order HAC/649/2026, of 21 June, with effect for tax periods beginning on or after 28/06/2026. Ruling V-1310-22 still described it as a tax haven, in line with the list in force in 2022.

Property in a Community with a Wealth Tax credit

The choice between Madrid and other Communities may have a material impact on Wealth Tax under limited liability. The combination of CJEU judgment C-127/12 and the Fourth Additional Provision of the Wealth Tax Act allows the rules of the Community where the greatest value of the assets in Spain is located to be applied: if most of the property is in Madrid, the credit applies; if it is outside Madrid, it does not.

The ITSGF, as we have seen, largely offsets the Madrid credit for net assets above roughly EUR 3.7 million, so regional planning loses part of its appeal.

Intra-group loan for the acquisition

Intra-group financing (the parent company or a group finance entity lends to the buyer of the property) is possible. The critical points are the limitation on financial expenses in article 16 LIS (30 per cent of operating profit, with a EUR 1 million threshold, transposing the ATAD), the arm’s length principle of article 18 LIS (related-party transactions) and, where applicable, withholding on interest paid to a non-resident lender where no domestic or treaty exemption applies.

Rental platforms and DAC 7

Since 2024, digital platform operators have reported to the AEAT, on Form 238, the amounts paid for the letting of real estate, among other activities. The AEAT cross-checks that information against the non-resident owner’s Form 210, so correct quarterly filing, with or without deduction of expenses depending on residence, is essential.

Non-resident property taxation combines several taxes (IRNR, Wealth Tax, ITSGF, ITP-AJD or VAT, ISD and local taxes) over the whole life cycle of the property. The above is a general map, not an opinion: the right structure depends to a large extent on the State of residence and the expected holding period.

For the general treatment of tax-residence conflicts and non-resident status, see the Frequently asked questions about Spanish tax residence. For the Beckham regime for those moving to Spain, the Frequently asked questions about the Beckham Law. For the exit tax on leaving Spain with a portfolio of holdings, the Frequently asked questions about the exit tax.

Sources

Legislation

• Royal Legislative Decree 5/2004, of 5 March, approving the consolidated text of the Non-Resident Income Tax Act (TRLIRNR).
• Law 19/1991, of 6 June, on Wealth Tax (LIP), including the Fourth Additional Provision.
• Law 38/2022, of 27 December (art. 3, ITSGF).
• Law 29/1987, of 18 December, on Inheritance and Gift Tax (LISD), including the Second Additional Provision.
• Royal Legislative Decree 1/1993, of 24 September (ITP-AJD).
• Law 37/1992, of 28 December, on VAT.
• Royal Legislative Decree 2/2004, of 5 March (TRLRHL), arts. 104 to 110.
• Law 11/2009, of 26 October, on SOCIMIs (art. 9).
• International Agreement between Spain and the United Kingdom in respect of Gibraltar, of 04/03/2019 (BOE-A-2021-3947).
• Order HAC/649/2026, of 21 June, amending Order HFP/115/2023 on non-cooperative jurisdictions (BOE-A-2026-13946).

Case law

• CJEU, judgment of 03/09/2014, Case C-127/12, Commission v Spain (ISD and free movement of capital): link
• Constitutional Court, Plenary, judgment 182/2021, of 26/10/2021 (municipal capital gains tax): link
• Supreme Court, Third Chamber, Fifth Section, judgment 242/2018, of 19/02/2018 (appeal 62/2017, ECLI:ES:TS:2018:550), on ISD for residents of third countries: www.poderjudicial.es.
• Supreme Court, Third Chamber, Second Section, judgment 1372/2025, of 29/10/2025 (appeal 4701/2023, ECLI:ES:TS:2025:4849): www.poderjudicial.es; and judgment 1402/2025, of 03/11/2025 (appeal 7626/2023, ECLI:ES:TS:2025:4846): www.poderjudicial.es; on the art. 31 LIP joint cap for non-residents.

Administrative doctrine

• DGT, Binding ruling V-1310-22, of 09/06/2022 (Spanish national moving residence to Gibraltar: tax residence in Spain under the 2019 Agreement): link
• DGT, Binding ruling V-1648-26, of 18/06/2026 (art. 22.4 of the DTT with Switzerland and interests in a Spanish entity): link

1. Basic concepts

Which tax applies to inheritances and gifts in Spain?

The Inheritance and Gift Tax, regulated by Law 29/1987, of 18 December, on Inheritance and Gift Tax (hereinafter, the LISD). It is a personal, progressive tax and, to a large extent, devolved to the Autonomous Communities: the State sets the framework and each Community may regulate reductions in the tax base, rate scales, multiplying coefficients and tax credits. This devolution explains the large regional differences set out in section 4.

How does it affect a foreigner who has just settled in Spain?

Becoming a Spanish tax resident, under the criteria of article 9 LIRPF that we have developed in the Frequently asked questions about Spanish tax residence, triggers personal liability to the ISD. A resident is taxed in Spain on any inheritance or gift received, regardless of where the deceased died, where the donor lived and where the transferred assets are located.

The difference from a non-resident is structural: a non-resident is taxed under limited (real) liability, only on assets located in Spain; a resident is taxed on all assets and rights acquired, wherever located.

When does that liability begin?

Personal liability depends on habitual residence in Spain on the accrual date. The ISD accrues on the day of death (inheritances) and on the day the act or contract is executed (gifts), under article 24 LISD. If the recipient is a Spanish tax resident at that moment, personal liability applies.

Are “personal liability” and “limited liability” the same?

No, they are two different regimes.

(i) Personal liability applies to Spanish tax residents, who are taxed on all assets and rights acquired, wherever located.

(ii) Limited liability applies to non-residents, who are taxed only on assets and rights located, exercisable or to be performed in Spain. For real estate, we have developed this in the Frequently asked questions about non-resident property taxation.

2. Inheritances received from abroad

A Spanish tax resident inherits his father’s entire estate; the father was resident in Switzerland. Is it taxed in Spain?

Yes, under personal liability. The inheritance is taxed in Spain in full, even though the deceased was not resident and the assets are outside Spain. This is one of the points that most surprises people coming from jurisdictions with territorial systems or no inheritance tax.

The tax base is the value of the assets and rights acquired. The tax due depends on the State rules or on the applicable regional rules, as explained below.

Which regional rules apply?

As a general rule, inheritances are governed by the rules of the Autonomous Community where the deceased had habitual residence on the accrual date, determined by the greatest number of days spent there in the preceding five years (arts. 32.2.a and 28.1.1.º.b of Law 22/2009). If the deceased was not resident in Spain, this rule does not lead to any regional rules.

For that case there is now a statutory rule. The Second Additional Provision (DA 2ª) of the LISD, introduced by Law 26/2014 following the CJEU judgment of 03/09/2014 (C-127/12) and amended by Law 11/2021, of 9 July, to extend it to all non-residents (not only those in the EU or EEA), provides that, if the deceased was not resident in Spain, the heirs may apply the rules of the Autonomous Community where the greatest value of the estate’s assets and rights located in Spain is found; if there are no assets in Spain, each heir applies the rules of the Community in which he or she resides (DA 2ª.Uno.1.a LISD). The Supreme Court had already extended that access to residents of third countries in its judgment 242/2018, of 19/02/2018, given in State liability proceedings (liability of the State as legislator).

This is the decisive factor. An heir resident in Madrid will apply the Madrid 99 per cent tax credit to the inheritance from a Swiss father. The same heir resident in Barcelona will apply the Catalan rules: kinship reductions, Catalonia’s own scale (up to 32 per cent) and, for inheritances, a tax credit that decreases as the base increases (art. 58 bis of Llei 19/2010), far below Madrid’s for large estates.

What if foreign inheritance tax has already been paid?

Spain has very few ISD-specific tax treaties: with France (Convention of 08/01/1963), Greece (Convention of 06/03/1919) and Sweden (Convention of 25/04/1963). Outside those three treaties, a Spanish tax resident who has paid a similar tax abroad on the same inheritance may apply the international double taxation credit of article 23 LISD: the lower of (i) the tax paid abroad, or (ii) the result of applying the effective average ISD rate to the assets located or rights exercisable abroad.

The credit mitigates double taxation but does not always eliminate it. It matters for inheritances from jurisdictions with high inheritance taxes (United Kingdom, France, Germany). For inheritances from jurisdictions with no inheritance tax or with broad exemptions for close family (Sweden since 2005; Portugal, which exempts spouses, descendants and ascendants; many Swiss cantons; Andorra; the United Arab Emirates), there is usually no foreign tax to credit and the Spanish ISD applies in full.

3. Gifts received from abroad

A mother resident in the United Arab Emirates wants to give a block of shares to her son, who is resident in Spain. Is it taxed in Spain?

Yes, under personal liability. The gift is taxed in Spain because the donee is resident, regardless of the donor’s residence and the location of the assets.

The connecting factor for gifts differs from that for inheritances. For gifts of movable property (shares, bank accounts, jewellery, cryptocurrencies), the rules of the Autonomous Community where the donee has habitual residence apply, determined by the greatest number of days in the five years preceding the accrual date (art. 32.2.c Law 22/2009). For gifts of real estate located in Spain, the rules of the Community where it is located apply (art. 32.2.b); if the property is outside Spain, the resident donee applies the rules of the Community of residence (DA 2ª.Uno.1.d LISD).

And the other way round? A Spanish resident wants to give shares to his son, who is resident in the United Kingdom.

Here the logic changes. The son, as a non-resident, is taxed under limited liability: only on assets located in Spain or rights exercisable in Spain.

For movable property located in Spain, the non-resident donee may apply the rules of the Autonomous Community where that property was located for the greatest number of days in the five years preceding the accrual date (DA 2ª.Uno.1.e LISD).

The resident donor must also bear in mind the Personal Income Tax (IRPF) effect: a gift of securities with a latent gain gives rise to a capital gain subject to the donor’s IRPF (using the value resulting from the ISD rules, art. 36 LIRPF), unless the non-recognition rule of article 33.3.c) LIRPF linked to the 95 per cent family-business reduction applies. And, as we have analysed in connection with binding ruling V-3222-20 and the Central Economic-Administrative Tribunal (TEAC) resolution of 19/02/2026 (RG 1535/2024) on the application of the FIFO method to gratuitous transfers, FIFO applies to identify which homogeneous securities are transferred.

4. The main differences between Autonomous Communities

Quick map by Autonomous Community in 2026.

The Communities most often considered by people settling in Spain:

(i) Madrid: 99 per cent tax credit for groups I (descendants and adoptees under 21) and II (descendants and adoptees aged 21 or over, spouse, ascendants and adopters), for both inheritances and gifts and with no cap. For gifts, the transfer must be formalised in a public document. For group III, the credit introduced for collateral relatives by Law 6/2018, of 19 December, has been raised by Law 2/2025, of 25 June, to 50 per cent for the whole of group III. Since 01/07/2025 a public document is not required where the tax base, aggregating gifts from the same donor in the previous three years, does not exceed EUR 10,000.

(ii) Balearic Islands: 100 per cent tax credit on inheritances for groups I and II, including succession agreements (a figure recognised in Balearic civil law), under Decree-law 4/2023, of 18 July, and Law 11/2023, of 23 November. Group III: 60 per cent credit for siblings, nephews and nieces, and uncles and aunts by blood who do not concur with descendants of the deceased, and 35 per cent in other cases (art. 36 bis of Legislative Decree 1/2014, as worded by Law 6/2025, of 23 July).

(iii) Valencian Community: 99 per cent tax credit for groups I and II on inheritances; for gifts, the 99 per cent covers spouses, parents, children, grandchildren and grandparents. Gifts are subject to stricter formal requirements: a public deed and proof of the origin of the funds and of the means of delivery when money is given. The rules are in article 12 bis of Law 13/1997, of 23 December, as amended by Law 6/2023, of 22 November, and Law 5/2025, of 30 May. Group III (siblings, nephews and nieces, and uncles and aunts by blood): 25 per cent credit, rising to 50 per cent on 01/06/2027 (Law 5/2025, as worded by Law 5/2026, of 31 July).

(iv) Catalonia: here the logic is different. For gifts there is no general tax credit; instead, the reduced scale of article 57 of Llei 19/2010, of 7 June, applies to gifts to groups I and II formalised in a public deed or court judgment. For inheritances, the decreasing tax credit of article 58 bis applies.

(v) Other Communities with heavier taxation apply their own scale or the State scale, with more limited credits.

Catalonia: the reduced scale of art. 57 Llei 19/2010.

It is one of the least known rules for people resident in Barcelona. When a gift to descendants, spouse, ascendants or other members of groups I and II is formalised in a public deed, the rates applicable to the taxable base are:

• Up to EUR 200,000: 5 per cent (tax of EUR 10,000 on the first EUR 200,000).
• From EUR 200,000 to EUR 600,000: 7 per cent (cumulative EUR 38,000 at EUR 600,000).
• Above EUR 600,000: 9 per cent on the excess.

Where a deed is not a validity requirement (for example, a gift of money), the law requires the gift to be formalised in a public deed within one month of delivery to access the reduced scale. This is often missed: a gift of money by bank transfer without a subsequent deed falls under the general Catalan scale (art. 57.3 Llei 19/2010), which reaches 32 per cent.

The multiplying coefficient (art. 58 Llei 19/2010: between 1.0 and 1.2 for groups I and II, depending on pre-existing wealth) increases the tax. A EUR 1,000,000 gift from father to son in a public deed produces gross tax of EUR 74,000 (5 % on 200,000, 7 % on 400,000 and 9 % on 400,000), or 7.4 per cent, which may reach EUR 88,800 with the maximum coefficient. Without a deed, the general scale gives gross tax of EUR 217,000, before reductions and coefficient.

Madrid: the 99 per cent tax credit.

The formula is different. The scale applies in full, but a 99 per cent credit is applied to the resulting tax for groups I and II. Result: 1 per cent of the tax is paid.

For gifts, the formal requirement is a public document, unless the tax base, aggregating gifts from the same donor in the previous three years, does not exceed EUR 10,000 (Law 2/2025). For inheritances, no special formality is required beyond the deed of acceptance and partition.

How to choose a Community when there is room to do so?

For someone moving to Spain who has not yet established a connecting factor, choosing Madrid over Barcelona, or the Balearic Islands over the Valencian Community, has a material impact on future inheritance taxation. Three precautions:

(i) Actually meet the connecting factor. For the ISD, the Community of residence is the one where the person has spent the greatest number of days in the five years preceding the accrual date (art. 28.1.1.º.b Law 22/2009). A formal residence without physical presence is hard to sustain in a tax audit, as we explain in the Frequently asked questions about Spanish tax residence.

(ii) Plan ahead. Making a gift immediately after settling in Madrid may raise suspicion if the move is manifestly tax-driven. The anti-avoidance clause of article 28.4 Law 22/2009, against changes of residence whose main purpose is to obtain lower taxation, remains available to the tax authorities.

(iii) Document the move: municipal registration, lease, schooling, bank movements, healthcare and social ties. We have set this out in the defence file described in the tax residence FAQs.

5. Access to regional rules where the deceased or the recipient is not resident in Spain

If a recent Spanish resident inherits from his father, who died in Switzerland, which Community’s rules apply?

The rule is in DA 2ª.Uno.1.a) LISD:

(i) If the (non-resident) deceased had assets in Spain, the rules of the Community where the greatest value of those assets is found apply.

(ii) If the deceased had no assets in Spain, each heir applies the rules of the Community of residence.

In practice, an heir resident in Madrid applies the 99 per cent credit even where the inheritance comes entirely from abroad and the deceased never lived in Spain.

What about heirs or donees resident in third countries?

Since Law 11/2021, DA 2ª LISD grants all non-residents, whether or not resident in the EU or the EEA, statutory access to regional rules. The rules are: if the deceased was resident in a Community, that Community’s rules (DA 2ª.Uno.1.b); if not resident in Spain, those of the Community where the greatest value of the deceased’s assets in Spain is located (1.a); for gifts of real estate, those of the Community where it is located (1.c); and for gifts of movable property, those of the Community where it was located for the greatest number of days in the preceding five years (1.e).

6. International double taxation

If UK Inheritance Tax is paid on a father’s estate and the same inheritance is then taxed in Spain, is there a credit?

Yes, unilaterally under article 23 LISD. In the absence of an inheritance tax treaty with the United Kingdom, the international double taxation credit applies: the lower of (i) the tax actually paid abroad, or (ii) the result of applying the effective average Spanish ISD rate to the assets located abroad.

The credit is capped at the part of the Spanish tax attributable to the assets taxed abroad; if the foreign tax is lower, Spain collects the difference. For inheritances from high-tax jurisdictions (United Kingdom, France), the credit usually exhausts that part of the Spanish tax. For inheritances from low-tax or no-inheritance-tax jurisdictions (many Swiss cantons, Andorra, the United Arab Emirates, or the United States, which taxes only above a high federal exemption), the Spanish tax applies practically in full.

What about inheritance tax treaties?

Only with France (1963), Greece (1919) and Sweden (1963). They are old conventions, each with its own allocation rules, which should be checked in their text. Outside them, the unilateral regime of article 23 LISD applies.

7. Succession agreements: the regional civil-law route

What is a succession agreement?

A figure of the regional civil laws (Catalonia, the Balearic Islands, Galicia, Aragon, Navarre and the Basque Country, each with its own rules) that allows assets to be transferred during lifetime under the tax regime for acquisitions on death: assets are transferred during lifetime, but taxed under inheritance rules rather than gift rules. Accrual takes place on the day the agreement is entered into (art. 24.1 LISD). The tax advantage is significant in Communities with very high inheritance tax credits (such as the Balearic Islands, at 100 per cent) and heavier taxation of gifts.

It is not available under common civil law: it requires the corresponding regional civil status (vecindad civil).

For IRPF purposes, if the beneficiary transfers the assets within five years of the agreement or before the death of the transferor, the beneficiary takes over the transferor’s acquisition value and date (art. 36 LIRPF, as worded by Law 11/2021).

8. Family business: the 95 per cent reduction

How does the 95 per cent family-business reduction work?

The 95 per cent family-business reductions are in article 20.2.c) LISD for inheritances and in article 20.6 for gifts (in the latter case, the donor must be 65 or over or incapacitated and must cease to perform management functions). Both require the holdings to qualify for the exemption in article 4.Ocho.Dos of the Wealth Tax Act (LIP) and to be retained for ten years under the State rules, a period that many Communities reduce to five.

It is the central element in the transfer of family businesses in Spain. Two recent analyses are relevant:

(i) Binding ruling V-0354-26, of 19/02/2026, on the interposition of a managing holding company and the loss of the Wealth Tax exemption (and, by extension, of the ISD reduction) for family members who keep direct ownership of the operating company.

(ii) The TEAC resolutions of 20/03/2026 on the full-time employee requirement computed at group level in family real-estate rental groups.

9. Deadlines, forms and place of filing

Deadlines?

Under the State rules: inheritances, six months from death; gifts, 30 working days from execution. Forms and some deadlines vary depending on the competent Autonomous Community (at the Spanish Tax Agency, AEAT, forms 650 and 651).

Where to file?

Where there is a regional connecting factor, with the tax administration of the relevant Community. Where the taxpayer must pay to the State Administration (non-residents or a non-resident deceased), with the AEAT (National Tax Management Office), applying where appropriate the regional rules resulting from DA 2ª LISD.

And if a recent resident receives an inheritance from abroad?

If the deceased was not resident in Spain, the return is filed with the AEAT (National Tax Management Office), applying the regional rules resulting from DA 2ª.Uno.1.a): those of the heir’s Community of residence, if the deceased had no assets in Spain.

10. Special cases

Cryptocurrencies received by inheritance or gift.

Cryptocurrencies are included at market value on the accrual date. If the heir or donee is resident in Spain, personal liability applies to the whole amount, wherever the assets are deemed located.

The location of cryptocurrencies for limited-liability purposes (non-resident recipient) is not expressly resolved by the law. In our opinion, the question is doubtful and depends on the circumstances, for example whether custody is held by an entity established in Spain; it should be analysed case by case.

Foreign trusts and foundations.

The DGT does not recognise the trust: contributions have no effect and the beneficiaries’ acquisitions are deemed to come directly from the settlor, at the moment they actually occur (V-1991-08, of 30/10/2008; V-0022-25, of 09/01/2025; V-1700-25, of 18/09/2025). Thus, designating beneficiaries with effect from the settlor’s death gives rise to an acquisition on death subject to the ISD and, according to the DGT, the beneficiary may apply the reductions, credits and coefficients based on kinship with the settlor, provided the other requirements are met. The DGT makes an exception where the beneficiary’s powers amount to ownership from the time of the contribution.

We have commented on this doctrine in the analyses International trusts and inbound workers and The DGT consolidates the tax transparency of the foreign trust.

Spanish real estate inherited by a non-resident.

It is taxed in Spain under limited liability, with access to the rules of the deceased’s Autonomous Community of residence, if the deceased lived in Spain, or of the Community where the greatest value of the deceased’s assets in Spain is located, if not (DA 2ª.Uno.1.a and b LISD). We have developed this in the Frequently asked questions about non-resident property taxation.

Deceased with dual nationality or several residences.

The analysis should be done in advance. The law applicable to the succession under Regulation (EU) No 650/2012 (the European Succession Regulation), which excludes tax matters from its scope, may have a material impact on who the forced heirs are and, through that, on tax planning.

The ISD is one of the most sensitive taxes for a foreigner settling in Spain. The above is a general map, not an opinion. The choice of Autonomous Community, executing a public deed within the deadline, using a succession agreement where available and coordinating the family-business reduction have a very high quantitative impact and, for the most part, cannot be corrected once accrual has occurred.

For the prior question of Spanish tax residence, see the Frequently asked questions about Spanish tax residence. For the Beckham regime applicable to inbound workers, the Frequently asked questions about the Beckham Law. For a later departure with a portfolio of holdings, the Frequently asked questions about the exit tax.

Sources

State legislation

• Law 29/1987, of 18 December, on Inheritance and Gift Tax (LISD): arts. 20, 23 and 24, and Second Additional Provision, introduced by Law 26/2014 and amended by Law 11/2021, of 9 July.
• Law 22/2009, of 18 December, on the financing system of the common-regime Autonomous Communities (arts. 28 and 32, connecting factors).
• Law 35/2006, of 28 November, on Personal Income Tax (art. 36, valuation in gratuitous transfers and succession agreements; art. 33.3.c, non-recognition rule for family businesses).

Regional legislation

• Catalonia: Llei 19/2010, of 7 June, regulating inheritance and gift tax (art. 57, scales; art. 58, coefficients; art. 58 bis, inheritance tax credit).
• Madrid: Legislative Decree 1/2010, of 21 October, of the Community of Madrid, as amended by Law 6/2018, of 19 December, and Law 2/2025, of 25 June.
• Valencian Community: Law 13/1997, of 23 December (art. 12 bis), as amended by Law 6/2023, of 22 November, Law 5/2025, of 30 May, and Law 5/2026, of 31 July.
• Balearic Islands: Legislative Decree 1/2014, of 6 June (arts. 36 and 36 bis); Decree-law 4/2023, of 18 July, and Law 11/2023, of 23 November; Law 6/2025, of 23 July.

Administrative doctrine

• DGT, Binding ruling V-1991-08, of 30/10/2008 (trust: non-recognition and beneficiary’s acquisition on death): link
• DGT, Binding ruling V-0022-25, of 09/01/2025 (contribution of shares to irrevocable trusts): link
• DGT, Binding ruling V-1700-25, of 18/09/2025 (trust: direct transfer from settlor to beneficiary and DA 2ª LISD): link
• DGT, Binding ruling V-0354-26, of 19/02/2026 (managing holding company and family-business exemption): link

Case law

• CJEU, judgment of 03/09/2014, Case C-127/12, Commission v Spain (access of EU/EEA non-residents to regional rules): link
• Spanish Supreme Court, Third Chamber, Fifth Section, judgment 242/2018, of 19/02/2018 (appeal 62/2017, ECLI:ES:TS:2018:550), on the extension to residents of third countries: www.poderjudicial.es.

Inheritance tax treaties in force

• Spain-France Convention, of 08/01/1963.
• Spain-Greece Convention, of 06/03/1919.
• Spain-Sweden Convention, of 25/04/1963.

1. Basic concepts

What is tax residence and why is it the keystone of the Spanish system?

It is the connecting factor that determines whether an individual is taxed in Spain on worldwide income (unlimited tax liability) or only on Spanish-source income (limited tax liability). It also determines liability to Wealth Tax (IP) on an unlimited basis, the position under the Temporary Solidarity Tax on Large Fortunes (ITSGF), taxation under the Inheritance and Gift Tax (ISD) and which Autonomous Community is competent for the ceded taxes.

What for years was treated as an essentially doctrinal matter has, in recent years, moved into litigation. The international mobility of high net worth individuals (HNWIs), the pull of preferential tax regimes in nearby jurisdictions and the spread of international remote work have increased litigation and made tax residence one of the most sensitive areas of Spanish tax audits.

Who determines whether I am a Spanish tax resident?

The Spanish Tax Agency (AEAT). Tax residence follows directly from article 9 of Act 35/2006, of 28 November, on Personal Income Tax (LIRPF). There is no prior formal “grant” of residence: the taxpayer acquires or loses it depending on whether the statutory criteria are met in each tax year.

In practice, residence is usually reviewed in an audit, when the AEAT compares the taxpayer’s return with the material indicators of presence, spending and economic and family ties.

Is tax residence computed by calendar year or over rolling periods?

By calendar year. The 183-day criterion, the economic-centre criterion and the family presumption all refer to the full calendar year. There is no partial residence: the taxpayer is either a Spanish tax resident for the whole year, or not at all.

As a result, changes of residence during the year affect the whole year of the move and require careful analysis of which of the two States ends up being the State of tax residence for Personal Income Tax (IRPF) purposes.

Are “tax residence”, “tax domicile” and padrón registration the same?

No. They are three distinct concepts.

Tax residence determines unlimited liability to IRPF and follows from article 9 LIRPF.

Tax domicile is the place where the taxpayer is located for dealings with the Tax Administration (notifications, competent offices).

Padrón registration (municipal census) is a local administrative register with no direct tax effect. In an audit it is one indicator among others, and it is not conclusive when the material facts point the other way.

2. The three criteria of article 9 LIRPF

What criteria make an individual a Spanish tax resident?

Article 9.1 LIRPF sets out three criteria. They operate alternatively: meeting any one of them is enough for tax residence to be attributed to Spain.

(i) Stay of more than 183 days in Spanish territory during the calendar year.

(ii) Main centre or base of economic activities or interests in Spain, directly or indirectly.

(iii) Family presumption: habitual residence in Spain of the spouse who is not legally separated and of the dependent minor children. This presumption is rebuttable and, in our view, subsidiary to the two previous criteria.

Since any one of the three is enough, a taxpayer who claims not to be resident in Spain must be able to show that none of them is met.

If I am a Spanish national living abroad, does article 9 still apply to me?

Yes. Article 9 LIRPF applies to any individual, regardless of nationality. Spanish nationality does not automatically make a person resident in Spain, and foreign nationality does not exclude it.

That said, article 8.2 LIRPF contains a specific rule for Spanish nationals who move to a tax haven, which we address in its own section below.

3. The 183-day criterion

How exactly are the 183 days counted?

Article 9.1.a) LIRPF treats as resident anyone who stays in Spanish territory for more than 183 days during the calendar year. The Central Economic-Administrative Tribunal (TEAC), in its Resolutions of 28/03/2023 (RG 4045/2020) and 25/04/2023 (RG 4812/2020), builds the period of stay from three types of days:

(i) Certified-presence days: days on which presence in Spain is established by direct evidence (passport, entry stamps, card payments, appointments, medical visits). The day counts in full, with no minimum number of hours.

(ii) Presumed days: days falling between two certified presences, provided they are a reasonable number of consecutive days, unless a certified presence outside Spain is shown.

(iii) Sporadic absences: departures from Spain which, under article 9.1.a) LIRPF itself, are added to the stay in Spain unless the taxpayer proves tax residence in another country. The Supreme Court judgments of 28/11/2017 defined the concept solely by reference to the duration or intensity of the absence.

Does partial presence count as a full day?

According to the TEAC, yes. The Resolution of 28/03/2023 counts the day where there “was physical presence at some point of the day in Spanish territory”, with no minimum number of hours. The arrival day and the departure day therefore both count as days in Spain. In our view, a pure airport transit without entry into the territory could be argued separately; those resolutions do not address it.

It should be noted that the TEAC set out this criterion in a case where it was the taxpayer who claimed to be resident in Spain (rectification of non-resident income tax returns).

And sporadic absences? How is the automatic count rebutted?

Article 9.1.a) LIRPF places the burden on the taxpayer: sporadic absences count as presence in Spain unless the taxpayer proves tax residence in another country. This is primarily done with a certificate of tax residence for the purposes of the double taxation treaty (DTT), issued by the other State. Without that certificate, sporadic absences are added to the stay in Spain.

The scholarship case law (Supreme Court judgments of 28/11/2017) defined the concept solely by an objective test, the duration or intensity of the absence, disregarding any intention to return. An absence exceeding 183 days is not sporadic and is therefore not added to the Spanish stay, irrespective of any certificate. Short absences, by contrast, are added unless the taxpayer proves tax residence in another country.

Do stays for humanitarian or cultural reasons count?

No. Article 9.1.a) LIRPF expressly excludes from the count “temporary stays in Spain resulting from obligations under cultural or humanitarian cooperation agreements, on a gratuitous basis, with the Spanish public administrations”. It is a narrow exception that rarely applies, but we mention it for completeness.

4. The main centre of economic activities or interests

What is this criterion about?

Article 9.1.b) LIRPF attributes tax residence where “the main centre or base of [the taxpayer’s] economic activities or interests is located in Spain, directly or indirectly”. It is the most complex of the three criteria, because it combines quantitative elements (income flows, asset values) with qualitative ones (place of management and administration, nature of the investments).

How is the main centre of economic interests assessed?

The law sets no calculation rule. In our view, the assessment cannot be reduced to the income flows of the year or to the value of the assets; it should weigh both together with qualitative factors: the place from which the assets are managed and administered, the productive or passive nature of the assets, the source of the income and the documentary consistency of the economic activity.

The Directorate-General for Taxes (DGT), for its part, repeats in its rulings that this is a question of fact to be assessed by the AEAT’s management and audit bodies (for instance, in V-0554-24, V-1270-25, V-2197-25 and V-2558-25, cited in this text).

How is it distinguished from the “centre of vital interests” under the DTT?

The main centre of economic interests under article 9.1.b) LIRPF is a strictly economic criterion. The centre of vital interests under article 4.2.a) of the OECD Model Convention, by contrast, is a mixed concept that weighs personal and economic relations together: family and social ties, occupation, the place from which assets are managed.

In our view, the two should not be confused, because the practical consequence matters: a taxpayer whose assets are managed from Spain but whose family and personal life are abroad may be a Spanish tax resident under article 9.1.b) and, at the same time, a treaty resident of the other State under the centre-of-vital-interests rule.

Can the AEAT take into account the place from which assets are managed?

Yes, as one indicator among others. In our view, the place of management and administration of the assets is a relevant qualitative factor, which the Administration may cross-check against spending patterns, real-estate ownership and banking activity. A taxpayer who claims that his or her economic centre is outside Spain should be able to document where investment and management decisions are actually taken.

How is the economic centre assessed when income is split between Spain and the destination country?

The DGT analysed a case of this kind in V-2558-25, of 18/12/2025: a taxpayer who moved to the United Arab Emirates for work in April 2025, who would spend no more than 150 days of 2025 in Spain, and who had received EUR 50,000 of employment income in Spain and expected to receive EUR 70,000 in the Emirates. He kept an empty property in Spain, his former main home, and rented a home in Dubai.

The DGT concludes that, if he stays outside Spain for a continuous period of more than 183 days, that absence is not sporadic and the presence criterion is not met. It leaves the assessment of the economic centre to the AEAT, as a question of fact, and adds that the taxpayer provides no information on the family presumption. Any dual residence would be resolved under article 4.3 of the Spain-UAE DTT.

In our view, a higher amount of foreign income does not by itself settle the economic-centre question. Documenting the move is, in our opinion, decisive.

5. The family presumption (art. 9.1 in fine LIRPF)

What does the presumption consist of?

The last paragraph of article 9.1 LIRPF provides that “it shall be presumed, unless proven otherwise, that the taxpayer has his habitual residence in Spanish territory when, in accordance with the previous criteria, the spouse who is not legally separated and the minor children who depend on him habitually reside in Spain”.

It is a rebuttable (iuris tantum) presumption. Its function is to make the taxpayer resident in Spain where the two previous criteria (183 days and economic centre) do not, but the family does live here.

Is it a principal or a subsidiary criterion?

In our view, subsidiary. The words “in accordance with the previous criteria” support the reading that the presumption only comes into play when the criteria in articles 9.1.a) and 9.1.b) do not by themselves establish residence. If either of the first two is met, the presumption is redundant; if neither is met, the presumption is the last criterion available.

How is the family presumption rebutted?

By evidence to the contrary, under article 108.1 of the General Tax Act 58/2003, of 17 December (LGT). In practice, there are two main routes:

(i) Proving the taxpayer’s own tax residence in another country, by means of a certificate for DTT purposes issued by that State, whose weight has been reinforced by the administrative-court case law (STS 778/2023, of 12/06/2023, and STS 971/2025, of 15/07/2025).

(ii) Proving that the taxpayer’s main centre of economic interests is not in Spain, with an evidential file that rules out the place of asset management, the ownership of productive assets and the pattern of economic flows.

In practice, the two routes are combined: a foreign certificate plus a consistent economic and asset file. One situation in which the presumption may be rebutted is that of a taxpayer whose spouse and children move to Spain at a later stage (for security reasons, schooling or a change of personal plans), while the taxpayer keeps his or her working and economic life abroad.

And if only the spouse remains in Spain and the children are already adults?

The wording of article 9.1 in fine refers to the spouse who is not legally separated and the dependent minor children. The DGT has nonetheless accepted that the presumption could apply where only the spouse remains in Spain.

In V-1270-25, of 10/07/2025, a retired Brazilian national, Spanish tax resident since 2018, was about to move to Brazil, where he would spend more than half of the year, while his spouse and his 21-year-old daughter, a student, stayed in Spain. The DGT states that, since the spouse will continue to live in Spain, the presumption “could apply” to him, subject to evidence to the contrary, and leaves the assessment of the economic centre to the AEAT. The ruling says nothing about the daughter.

In our view, the point is not settled, and the presumption is in any event rebuttable.

6. Burden and assessment of evidence

Who bears the burden of proof on tax residence?

Under the general rule of article 105.1 LGT, whoever asserts a right must prove the facts on which it rests. In tax residence matters, the principle of proximity to, or availability of, evidence is also commonly applied: the burden falls on whoever is best placed to provide the evidence.

In practice, this results in a shifting burden. The Administration gathers and puts forward objective indicators (bank movements, notarial records, padrón registration, utilities, flights, card data). The taxpayer must rebut them with counter-evidence: a foreign certificate, lease agreements, children’s schooling in another State, returns filed abroad, healthcare, social ties.

What weight do the presumptions of article 108.2 LGT carry?

Article 108.2 LGT admits as evidence presumptions not established by law, provided there is a precise and direct link, according to the rules of human reasoning, between the proven fact and the fact to be inferred. In tax residence matters, these presumptions are typically built on spending patterns, the actual use of real estate and local banking activity. The assessment is overall: what matters is not an isolated indicator but a consistent set of indicators.

How far can the Administration go with indicators?

It may rely on several indicators, provided they are consistent with each other. The judgment of the High Court of Justice (TSJ) of the Canary Islands of 20/12/2024 (appeal 227/2024) upheld a finding of regional tax residence based on multiple consistent indicators. In that case, the AEAT established residence in the Canary Islands, against a padrón registration in Madrid, through, among other indicators, 253 days of card spending in the Canary Islands, visits to notaries in Las Palmas matching same-day spending, a statement by the doorman of the Madrid building and Wealth Tax returns filed late, already showing a Canary Islands address.

The judgment is relevant for two reasons. The first is substantive: material facts prevail over formal declarations (padrón registration, returns) when the economic reality is different. The second is procedural: the cross-checking of spending data could be reinforced by Form 174 (information return on all types of cards, approved by Order HAC/747/2025 of 27 June, implementing article 38 ter of the General Regulation on tax management and audit procedures), which is filed for the first time in January 2027 for tax year 2026.

7. International conflicts and DTT tie-breaker rules

What happens if two States consider me a tax resident at the same time?

This is dual residence. Where Spain and another State with which Spain has a DTT each treat the taxpayer as resident under their domestic law, the conflict is resolved under the tie-breaker rules of the relevant bilateral treaty, which normally follow article 4.2 of the OECD Model Convention.

Under the Model, the rules apply in sequence. The taxpayer is resident, for treaty purposes, in the State in which he or she has:

(i) A permanent home available. If there is one in both States, the next criterion applies.

(ii) The centre of vital interests, meaning the State with which his or her personal and economic relations are closer. If this cannot be determined, the next criterion applies.

(iii) An habitual abode. If he or she lives habitually in both States or in neither, the next criterion applies.

(iv) Nationality.

(v) If he or she is a national of both States or of neither, the competent authorities settle the question by mutual agreement.

The exact wording varies from treaty to treaty, so the text of the applicable DTT should always be checked. For example, in the Spain-Ecuador DTT the last rule refers the case to agreement between the competent authorities where residence cannot be determined under any of the previous criteria, and in the DTT with the United Arab Emirates the tie-breaker rules are in article 4.3.

What happens if a permanent home is available only in Spain?

The DGT analysed a scenario of this kind in V-0554-24, of 09/04/2024: a taxpayer who lived in Ecuador with his spouse and children, where he held a residence permit, usually stayed more than 183 days a year and earned employment income. He had a permanent home in Spain but not in Ecuador, and stated that his main investments and business assets were in Spain.

The DGT concludes that, if the absence exceeds 183 continuous days, it is not sporadic and the presence criterion is not met. However, the taxpayer could be resident under article 9.1.b), since he states that his main investments and business assets are in Spain, a question of fact that the DGT leaves to the AEAT. Any dual residence would be resolved under article 4.2 of the Spain-Ecuador DTT, which the DGT merely quotes without applying it.

In our view, if a permanent home were available to him only in Spain, the first tie-breaker rule could make him a treaty resident of Spain without any need to examine the centre of vital interests.

Is a tax residence certificate issued by another State valid?

Yes, with qualifications. STS 778/2023, of 12/06/2023 (appeal 915/2022), held that Spanish administrative bodies and courts are not competent to review the circumstances in which a tax residence certificate was issued by the authorities of a State that has a DTT with Spain, where the certificate was issued for treaty purposes. Its validity must be presumed.

STS 971/2025, of 15/07/2025 (appeal 4023/2023), confirmed that position: Spanish bodies are not competent to review the circumstances in which the foreign certificate was issued, its validity is presumed and residence conflicts are resolved under the tie-breaker rules of article 4.2 of the DTT. In that case, however, the Supreme Court dismissed the appeal because the taxpayer had not shown that he had a permanent home available in the United Kingdom, which underlines the importance of documenting the tie-breaker rules.

Consequently, in administrative and administrative-court proceedings the AEAT cannot simply disregard the foreign certificate. What it can do is invoke the DTT tie-breaker rules and, where appropriate, initiate the mutual agreement procedure. Moreover, the presumption of validity of the certificate does not prevent the Administration from questioning whether the taxpayer is a resident for treaty purposes (article 4.1) where he or she is taxed under a regime that does not tax worldwide income.

And certificates issued by States with a territorial or special regime?

Here there is a qualification. The TEAC, in two resolutions of 24/06/2024 (RG 5590/2022 and RG 8325/2022, the latter with a criterion published as doctrine), held, in a case concerning withholding on pension-plan benefits, that a certificate issued to a taxpayer under the Portuguese Non-Habitual Resident (NHR) regime does not allow the Spain-Portugal DTT to be applied because, in the TEAC’s view, article 4.1 of the DTT excludes from the concept of resident a person who is not fully liable to tax on worldwide income in that State. There was also a second ground for dismissal in that case: the certificate provided referred to 2021, not 2022.

STS 1392/2024, of 22/07/2024 (appeal 7744/2022), which we have discussed in the Spanish Tax Journal, did not settle the question for the UK remittance basis. The TSJ of Catalonia had discounted the certificate because the taxpayer was not taxed in the United Kingdom on her worldwide income, but the Supreme Court did not adopt that argument: by reference to STS 1214/2024, it found that the tax authorities had not challenged the certificate and resolved the dual residence in favour of Spain under the DTT tie-breaker rules.

In our view, the reasoning could extend to other territorial or limited-liability regimes, including those that succeed the NHR. The certificate should be provided, but one must be prepared for the AEAT to question whether the taxpayer falls within the personal scope of the DTT.

What about the now-repealed UK non-dom regime?

The UK non-dom regime was repealed with effect from 06/04/2025. It has been replaced by the FIG (Foreign Income and Gains) regime, under which individuals who have not been UK resident in the previous ten years may elect not to be taxed on eligible foreign income and gains during their first four years of residence. In parallel, the TRF (Temporary Repatriation Facility) allows, for three tax years, pre-06/04/2025 foreign income and gains to be designated at a rate of 12 per cent (2025/26 and 2026/27) and 15 per cent (2027/28). The UK inheritance tax regime has also moved from a domicile-based system to one based on long-term residence.

During those four years, a taxpayer under the FIG regime is not taxed in the United Kingdom on all of his or her worldwide income either, so, in our view, the article 4.1 DTT question could still arise.

What did the Sito Pons case say about the criminal dimension of residence conflicts?

Judgment 117/2025 of the TSJ of Catalonia, of 01/04/2025 (criminal appeal 177/2023), upheld the acquittal handed down by the Provincial Court of Barcelona on 12/12/2022 in the proceedings against Sito Pons for offences against the Public Treasury in respect of IRPF and Wealth Tax. The factors weighed by the court include the UK tax residence certificate, the DTT and the in dubio pro reo principle.

However, the Criminal Chamber of the Supreme Court, in judgment 274/2026, of 09/04/2026 (appeal 4481/2023), has made clear that, in criminal proceedings, the foreign certificate is a rebuttable (iuris tantum) presumption, which gives way to sufficient evidence of physical presence in Spain. For that reason, in our view, the acquittal upheld by the TSJ of Catalonia should not be read as a general rule.

8. Special cases

I am a Spanish national moving to Andorra, the UAE or Singapore, which have a DTT with Spain. What additional rules apply to me?

Those of the general framework: article 9 LIRPF, the DTT tie-breaker rules and the foreign certificate. Andorra, the United Arab Emirates and Singapore all have a DTT with Spain, so residence conflicts are resolved under the tie-breaker rules of article 4 of each treaty (article 4.3 in the case of the UAE). The documentary planning is the usual one: a tax residence certificate from the destination State, evidence of presence and day-to-day life there, and no residual economic centre in Spain.

And a worker posted for two years to a country with a DTT, leaving family in Spain?

It is a frequent case: a doctor, executive or consultant who takes a job in another State for a long but limited period, with a spouse and, where applicable, minor children remaining in Spain. The DGT addressed it in V-2197-25, of 17/11/2025, concerning a doctor considering a two-year move to Saudi Arabia, married with three children, one of them aged 17 and living in the family home.

The DGT concludes that (i) if he stays abroad for a continuous period of more than 183 days, the absence is not sporadic, so the article 9.1.a) criterion is not met; (ii) the economic centre is a question of fact for the AEAT to assess; (iii) as regards the family presumption, the taxpayer does not provide enough information for the DGT to rule, and (iv) any dual residence would be resolved under article 4.2 of the Spain-Saudi Arabia DTT, signed in Madrid on 19/06/2007.

In our view, if the spouse and the minor child remained in Spain, the presumption could apply, and it would be advisable to document residence in the destination State: residence certificate, presence and day-to-day life there, and consistency of the material facts.

And if I move to a tax haven?

Article 8.2 LIRPF applies: a Spanish national who proves new tax residence in a country or territory regarded as a tax haven remains an IRPF taxpayer for the year of the move and the following four years. It is an anti-avoidance rule that applies irrespective of the article 9 criteria.

In addition, where the taxpayer claims residence in one of those territories, the Administration may require proof of a stay there of 183 days in the calendar year (article 9.1.a) LIRPF). Although article 8.2 still uses the term “tax haven”, the current term is “non-cooperative jurisdictions”, listed in Order HFP/115/2023, of 9 February, as amended by Order HAC/649/2026, of 21 June.

The exit tax under article 95 bis LIRPF may also apply; we deal with it in our frequently asked questions on the exit tax.

What happens if a Spanish national moves to Gibraltar?

The International Agreement on taxation and the protection of financial interests between the Kingdom of Spain and the United Kingdom in relation to Gibraltar, done on 04/03/2019 and in force since 04/03/2021 (BOE of 13/03/2021), contains specific rules that make certain persons resident in Spain.

In particular, Spanish nationals who move their residence to Gibraltar after the signature of the Agreement are, in all cases, considered tax residents of Spain only. For legal persons, the Agreement makes Gibraltar companies with significant links to Spain (assets, income, management or control) resident in Spain.

The DGT, in V-1310-22, of 09/06/2022, applied this rule of the Agreement to a Spanish national moving to Gibraltar and noted that, at that time, Gibraltar was still on the list of tax havens. Order HAC/649/2026, of 21 June (BOE of 27/06/2026), removed Gibraltar from the list of non-cooperative jurisdictions for taxes whose tax period begins on or after its entry into force on 28/06/2026. For IRPF, therefore, from tax year 2027 article 8.2 LIRPF no longer applies by reason of Gibraltar, but the rule in the Agreement remains.

Spanish diplomats and official missions abroad?

Articles 10 and 9.2 LIRPF lay down specific rules that displace the general criterion. Article 10 keeps as IRPF taxpayers Spanish nationals, their spouse who is not legally separated and their minor children where they live abroad as members of Spanish diplomatic missions or consular offices, as holders of official posts in permanent delegations to international organisations, or as serving civil servants holding a non-diplomatic, non-consular official post abroad, subject to the exceptions in paragraph 2 of that article. Article 9.2, on a reciprocal basis, excludes from IRPF foreign nationals living in Spain on the same grounds, unless a treaty provides otherwise.

And digital nomads and international remote workers?

The general rule is unchanged: if they spend more than 183 days in Spain or have their economic centre here, they are resident. Act 28/2022, of 21 December, on the promotion of the start-up ecosystem, introduced the visa and the regime for international remote work, but tax residence is still determined under article 9 LIRPF. A remote worker for a foreign company may also raise related issues (permanent establishment of the non-resident employer, withholding, social security) that should be analysed together with residence.

Can a family unit file jointly if one spouse is resident in another EU or EEA State?

No. The DGT addressed this in V-0347-24, of 12/03/2024: the applicant, who works and lives in Spain, was married to a Spanish national who had been tax resident in France since 1993, a civil servant and university lecturer with a home in Limoges.

The ruling recalls that each spouse’s residence is determined under article 9 LIRPF and that joint filing is only available to IRPF taxpayers, so the spouse resident in France cannot be included in a joint return. It does, however, refer to the deduction under the forty-eighth additional provision of the LIRPF, available to family units made up of IRPF taxpayers and residents of another EU or EEA State with which there is an effective exchange of tax information, which brings the tax close to what it would have been had joint filing been possible, and to the option under article 46 of the consolidated text of the Non-Resident Income Tax Act.

9. Tax audits on residence

What information does the AEAT gather when it opens a residence audit?

A great deal, and more every year. The audit typically cross-checks entry and exit records (flights, borders), padrón data, utilities (electricity, gas, water), ownership and use of real estate, bank movements and card data, notarial records (purchases, execution of deeds), healthcare data, children’s schooling and returns filed in other States.

The Annual Tax and Customs Control Plan 2026 (Resolution of 11/03/2026 of the Director-General of the AEAT, BOE of 12/03/2026) refers to “conduct that is extremely harmful to the interests of the Public Treasury, relating to the simulation of tax residence outside Spanish territory or the improper use of double taxation treaties, especially in the case of individuals, with the main aim of obtaining lower effective taxation than is due”. Form 174 on cards, filed for the first time in January 2027 for tax year 2026, could reinforce the cross-checking of spending.

How is the day calendar built for the 183-day count?

The calendar combines the three types of days identified by the TEAC:

(i) Certified days: days on which presence in Spain is established by direct evidence (stamps, dated receipts, appointments, inbound flights).

(ii) Presumed days: days falling between two certified days, provided they are a reasonable number of consecutive days, unless a certified presence outside Spain is shown.

(iii) Sporadic absences: departures that are added to the stay unless tax residence in another State is proven.

The risk that is often overlooked lies in the presumed days: a taxpayer who documents two visits to Spain fifteen days apart may see those fifteen days counted as presumed stay, unless he or she proves being outside Spain during that period.

What evidential file should be prepared before an audit?

It is advisable to prepare a consistent evidential file before the audit begins, so that the documentation is already gathered when the procedure starts. Typical items include:

• Passports, boarding passes, entry and exit stamps.
• Tax residence certificates from the declared State.
• Tax returns filed in the other State.
• Lease agreements or title deeds for property abroad.
• Utility bills and evidence of spending in the declared State of residence.
• Children’s schooling.
• Regular healthcare abroad.
• Social ties: membership of clubs, gyms, associations.
• Bank records showing a pattern of spending outside Spain.

Consistency between the various items matters as much as each item on its own. A voluminous but contradictory file is, in our view, weaker than a lean but internally consistent one.

10. Regional tax residence

Is regional residence determined in the same way as State residence?

No, and the difference matters.

At State level (article 9.1 LIRPF), the three criteria apply alternatively: meeting one is enough.

At regional level (article 28 of Act 22/2009, of 18 December, on the financing of the common-regime Autonomous Communities, and article 72 LIRPF), the criteria apply in sequence: (i) presence, that is, the greater number of days in the territory of an Autonomous Community; (ii) main centre of interests, meaning the territory where the greater part of the IRPF tax base is obtained (employment income, real-estate income and gains, and business income), and (iii) as a residual criterion, the last residence declared for IRPF purposes.

There are special rules for individuals who are resident in Spain without spending more than 183 days in Spanish territory (they are resident in the Autonomous Community where their main centre of economic activities or interests lies) and for those resident under the family presumption (the Autonomous Community where the spouse and minor children live).

Does it matter which Autonomous Community I lived in for Wealth Tax and ISD purposes?

Very much. Wealth Tax and Inheritance and Gift Tax are ceded to the Autonomous Communities, which have their own regulatory powers. Some Communities, such as Madrid, grant 100 per cent relief on Wealth Tax, while others still levy it. The ITSGF, a State tax, only allows the Wealth Tax actually paid to be deducted, so regional Wealth Tax relief does not neutralise it. For ISD, the Autonomous Community of residence is determined by presence during the five years before the tax point. This divergence fuels litigation on moves between Communities.

There is also a presumption that the change of residence is not effective (article 28.4 of Act 22/2009). Changes of residence whose main purpose is to achieve lower effective taxation on ceded taxes have no effect. In addition, unless the new residence continues uninterrupted for at least three years, it is presumed that there has been no change, as regards the ceded yield of IRPF and Wealth Tax, where three circumstances concur: (i) the IRPF tax base in the year of the move or the following year exceeds that of the year before the move by at least 50 per cent; (ii) in that year the effective IRPF burden is lower than it would have been in the Community of origin, and (iii) in the following year or the year after, the taxpayer returns to live in the Community of origin.

What recent Supreme Court case law is there on audit competence between Autonomous Communities?

Three rulings from 2022-2024 stand out.

The Supreme Court judgment of 21/03/2022 (appeal 2221/2020) held that acts adopted by a territorially incompetent Administration are voidable but not void ab initio, and interrupt the limitation period where the domicile is corrected with retroactive effect.

The Supreme Court judgment of 15/04/2024 (appeal 9082/2022) held that the competence of an Autonomous Community to assess Wealth Tax depends on correctly identifying the connecting factor, the actual habitual residence, without a prior formal change of tax domicile being required under the procedure in articles 148 et seq. of the General Regulation on tax management and audit procedures. This is particularly relevant in disputes between Madrid and other Autonomous Communities.

The Supreme Court judgment of 20/06/2024 (appeal 645/2023), in a dispute between the Basque Country and Cantabria, held that one Administration may not unilaterally assume competence to collect ISD against the declared tax domicile without first initiating the change-of-domicile procedure under the Economic Agreement (Concierto Económico).

In addition, a Supreme Court order (auto) of 23/04/2025 (appeal 2910/2024) admitted for cassation a question similar to the one decided by the judgment of 15/04/2024. The appeal has been decided by STS 417/2026, of 08/04/2026, which, according to its official summary, identifies the Wealth Tax connecting factor with the taxpayer’s place of habitual residence and cites the judgment of 15/04/2024.

11. Acquisition and loss of tax residence

When is Spanish tax residence acquired?

When any of the three criteria of article 9.1 LIRPF is met during the year. Residence is attributed for the whole year, even if the physical move takes place mid-year. A taxpayer who moves to Spain in March and stays more than 183 days during the rest of the year will be a Spanish tax resident for the whole year of the move.

For taxpayers who move to Spain for work (employees, company directors, highly qualified professionals, entrepreneurs), the special regime for posted workers under article 93 LIRPF (Beckham Law) should be considered; it allows taxation under Non-Resident Income Tax (IRNR) rules for the year of the move and the following five years. We deal with it in detail in our frequently asked questions on the Beckham Law.

When is Spanish tax residence lost?

When none of the three criteria of article 9.1 LIRPF is met during the year. Loss of residence follows the same calendar-year logic: there is no partial tax residence.

Where the taxpayer who loses residence holds a significant portfolio of shares or other equity interests, the exit tax under article 95 bis LIRPF comes into play; we analyse it in our frequently asked questions on the exit tax.

And tax residence certificates when I am the one leaving Spain?

If, despite the move, the taxpayer is still a Spanish tax resident (for instance, in the year of departure or under article 8.2 LIRPF) and needs to prove it to another State, the certificate is requested from the AEAT. It should be obtained in its “for treaty purposes” version, rather than the generic residence certificate, so that it is effective before the other Administration.

Tax residence is the most sensitive connecting factor of the system, and the most disputed. The above is a map, not an opinion. Each relocation plan and each audit requires individual analysis.

Sources

• Act 35/2006, of 28 November, on Personal Income Tax: articles 8.2, 9, 10, 72, 93 and 95 bis and forty-eighth additional provision.
• Act 22/2009, of 18 December, on the financing of the common-regime Autonomous Communities: article 28.
• General Tax Act 58/2003, of 17 December: articles 105 and 108.
• International Agreement on taxation and the protection of financial interests between the Kingdom of Spain and the United Kingdom in relation to Gibraltar, of 04/03/2019 (BOE of 13/03/2021).
• Order HAC/649/2026, of 21 June, amending Order HFP/115/2023, of 9 February (BOE of 27/06/2026): removal of Gibraltar from the list of non-cooperative jurisdictions.
• Order HAC/747/2025, of 27 June (BOE of 15/07/2025), approving, among others, Form 174.
• Resolution of 11/03/2026 of the Director-General of the AEAT approving the general guidelines of the Annual Tax and Customs Control Plan 2026 (BOE of 12/03/2026).
• Supreme Court, judgments of 28/11/2017, concept of sporadic absence (scholarships): no. 1829/2017, appeal 815/2017, ECLI:ES:TS:2017:4305: www.poderjudicial.es; no. 1850/2017, appeal 812/2017, ECLI:ES:TS:2017:4306: www.poderjudicial.es; no. 1860/2017, appeal 807/2017, ECLI:ES:TS:2017:4434: www.poderjudicial.es; no. 1834/2017, appeal 809/2017, ECLI:ES:TS:2017:4307: www.poderjudicial.es.
• Supreme Court, judgment 778/2023, of 12/06/2023 (appeal 915/2022, ECLI:ES:TS:2023:2735), validity of the foreign tax residence certificate for DTT purposes: www.poderjudicial.es.
• Supreme Court, judgment 1392/2024, of 22/07/2024 (appeal 7744/2022, ECLI:ES:TS:2024:4219), UK certificate on the remittance basis and the Spain-UK DTT tie-breaker rules: www.poderjudicial.es.
• Supreme Court, judgment 971/2025, of 15/07/2025 (appeal 4023/2023, ECLI:ES:TS:2025:3498), reiteration of the case law on foreign residence certificates and permanent home: www.poderjudicial.es.
• Supreme Court, Criminal Chamber, judgment 274/2026, of 09/04/2026 (appeal 4481/2023, ECLI:ES:TS:2026:1629), the foreign certificate as a rebuttable presumption in criminal proceedings: www.poderjudicial.es.
• Supreme Court, regional competence and change of domicile: judgment 355/2022, of 21/03/2022 (appeal 2221/2020, ECLI:ES:TS:2022:1144): www.poderjudicial.es; judgment 632/2024, of 15/04/2024 (appeal 9082/2022, ECLI:ES:TS:2024:2013): www.poderjudicial.es; judgment 1096/2024, of 20/06/2024 (appeal 645/2023, ECLI:ES:TS:2024:3338): www.poderjudicial.es; order of 23/04/2025 (appeal 2910/2024, ECLI:ES:TS:2025:4200A): www.poderjudicial.es; judgment 417/2026, of 08/04/2026 (appeal 2910/2024, ECLI:ES:TS:2026:1760): www.poderjudicial.es.
• TSJ of Catalonia, Civil and Criminal Chamber, judgment 117/2025, of 01/04/2025 (criminal appeal 177/2023, ECLI:ES:TSJCAT:2025:5842), Sito Pons case, UK certificate in criminal proceedings: www.poderjudicial.es.
• TSJ of the Canary Islands, Contentious-Administrative Chamber, First Section, judgment 602/2024, of 20/12/2024 (appeal 227/2024, ECLI:ES:TSJICAN:2024:4889), regional residence proven by consistent indicators: www.poderjudicial.es.
• TEAC, Resolution of 28/03/2023 (RG 4045/2020), types of days for the 183-day count: criterion in DYCTEA
• TEAC, Resolution of 25/04/2023 (RG 4812/2020), reiterating the previous criterion: criterion in DYCTEA
• TEAC, Resolution of 24/06/2024 (RG 8325/2022), reiterating RG 5590/2022 of the same date: the Portuguese NHR certificate does not allow the Spain-Portugal DTT to be applied: criterion in DYCTEA
• DGT, V-0347-24, of 12/03/2024 (spouse resident in France; joint filing; 48th additional provision LIRPF): ruling
• DGT, V-0554-24, of 09/04/2024 (move to Ecuador; permanent home in Spain; article 4.2 DTT): ruling
• DGT, V-1270-25, of 10/07/2025 (retired Brazilian national; move to Brazil; spouse and 21-year-old daughter in Spain): ruling
• DGT, V-1310-22, of 09/06/2022 (Spanish national moving to Gibraltar; 2019 Agreement): ruling
• DGT, V-2197-25, of 17/11/2025 (doctor posted to Saudi Arabia for two years; family presumption and DTT): ruling
• DGT, V-2558-25, of 18/12/2025 (move to the United Arab Emirates; no more than 150 days in Spain; economic centre and article 4.3 DTT): ruling
• HMRC, 4-year FIG regime: Check if you can claim the 4-year foreign income and gains regime
• HMRC, Temporary Repatriation Facility: RDRM71000 and RDRM73400
• Spanish Tax Journal, Frequently asked questions about the Beckham Law
• Spanish Tax Journal, Frequently asked questions about the exit tax
• Spanish Tax Journal, analysis of STS 1392/2024: UK certificate on the remittance basis
• Spanish Tax Journal, analysis of STS 971/2025: permanent home and tie-breaker rules
• Spanish Tax Journal, analysis of Supreme Court (Criminal Chamber) judgment 274/2026: residence certificates in criminal proceedings

1. Basic concepts

What exactly is the exit tax?

It is the regime that taxes, as a capital gain, the positive difference between the market value and the acquisition value of the taxpayer’s shares or equity interests when the taxpayer ceases to be subject to Spanish Personal Income Tax (IRPF) because of a change of residence. The rationale is to prevent the latent gain accrued during the period of residence from escaping Spanish tax.

It is regulated in article 95 bis of Law 35/2006, of 28 November, on Personal Income Tax (hereinafter, the LIRPF), introduced by Law 26/2014, of 27 November, with effect from 1 January 2015.

Why is it called exit tax and not “departure tax”?

The technical name in Spanish is régimen especial de ganancias patrimoniales por cambio de residencia. The exit tax label comes from the European debate on exit taxation, which several States already applied before the Court of Justice of the European Union (CJEU), in Lasteyrie du Saillant (C-9/02, 11/03/2004), held that the French taxation of latent gains on a change of residence was contrary to the freedom of establishment.

The European Commission then published Communication COM(2006) 825, of 19/12/2006, on exit taxation and, for companies, Council Directive (EU) 2016/1164 of 12 July 2016 (the ATAD, art. 5) introduced a harmonised exit tax for legal entities. The label has become settled in professional usage.

When does it accrue?

The gain is allocated to the last tax period that must be declared for IRPF purposes and is included in the savings tax base, under article 46.b) LIRPF.

If the return for that period has already been filed, a supplementary self-assessment is filed, without penalties, late-payment interest or surcharges (art. 95 bis.2 LIRPF).

Is “loss of residence” the same as “exit tax”?

No. Loss of tax residence is the prerequisite: ceasing to meet every criterion of article 9.1 LIRPF (presence in Spain for more than 183 days; main centre or base of business activities or economic interests in Spain) and rebutting the family presumption, normally by proving residence in another State.

The exit tax is only one of the tax consequences that this loss may trigger, and only if the thresholds of article 95 bis are exceeded. A taxpayer may lose residence and pay no exit tax because the portfolio is below the threshold; and a taxpayer may pay exit tax without the tax authorities questioning the loss of residence at all.

2. Scope: personal requirements and economic thresholds

How many years of prior tax residence are required?

The taxpayer must have been subject to IRPF for at least ten of the fifteen tax periods preceding the last period that must be declared for IRPF purposes. If that count is not met, the exit tax does not apply, whatever the size of the portfolio.

What are the economic thresholds?

There are two alternative tests; meeting either is enough.

The first is the aggregate threshold: the market value of all the taxpayer’s shares or equity interests, calculated under paragraph 3 of article 95 bis, exceeds EUR 4,000,000.

The second is the qualifying-holding threshold: on the accrual date of the last period that must be declared, the holding in a given entity exceeds 25 per cent and the market value of that holding exceeds EUR 1,000,000. In this case the regime applies only to that holding, not to the rest of the portfolio.

Which assets count? Only listed shares?

The rule covers “shares or equity interests in any type of entity”. The concept is broad: listed shares, interests in limited companies, interests in foreign companies and units or shares in collective investment undertakings (investment funds, SICAVs).

Real estate, bonds, deposits and, according to the most recent administrative doctrine, cryptocurrencies such as bitcoin fall outside.

Do cryptocurrencies count?

It depends on the asset. The Directorate-General for Taxes (DGT), in binding ruling V-0666-25, of 14/04/2025, concluded that bitcoin and similar cryptocurrencies fall outside article 95 bis, as they are not shares or equity interests in any type of entity.

The reasoning relies on the DGT’s own earlier doctrine, which in rulings such as V-0999-18, V-1948-21 and V-0648-24 had characterised virtual currencies as intangible assets.

The DGT warns, however, that other cryptoassets that do confer rights over an entity (for example, tokens representing equity interests) could fall within the exit tax. Each asset must be analysed on its features. In our opinion, what matters is the content of the rights the asset confers, not its name.

3. How is the tax calculated?

What is the tax base?

The positive difference between the market value of the shares or equity interests on the accrual date of the last tax period that must be declared and their acquisition value.

Negative differences are disregarded: the regime taxes latent gains and does not take latent losses into account.

How are unlisted holdings valued?

Paragraph 3 of article 95 bis sets different rules depending on the type of asset.

Securities admitted to trading on regulated markets as defined in Directive 2004/39/EC (known as MiFID I, which harmonises European markets in financial instruments) are valued at their market price.

Unlisted securities are valued, unless a different market value is proven, at the higher of: (i) the net equity attributable to them according to the balance sheet for the last financial year closed before the accrual date; or (ii) the result of capitalising at 20 per cent the average profits of the three financial years closed before that date, counting as profits the dividends distributed and the allocations to reserves other than revaluation or restatement reserves.

The clause “unless a different market value is proven” matters in practice. A family holding company whose book equity understates its operating subsidiaries, or a startup founder with a recent valuation in a funding round, may prove the real market value with an external report, recent term sheets (preliminary investment agreements setting the price per share) or documented comparables.

Units in collective investment undertakings are valued at the net asset value applicable on the accrual date or, failing that, at the last published value.

At what rate is it taxed?

At the savings scale rates for the year of accrual. For 2026 the scale is progressive, from 19 per cent to 30 per cent; the top rate applies to the base exceeding EUR 300,000.

4. Relocation to the EU, the EEA or Switzerland: the paragraph 6 regime

What special rule does paragraph 6 of article 95 bis lay down?

Where the change of residence is to another Member State of the European Union (EU), or to a State of the European Economic Area (EEA) with which there is an effective exchange of tax information, the taxpayer may opt for a special regime.

The gain must be self-assessed only if, within the ten years following the last year that must be declared for IRPF purposes, one of the circumstances listed below occurs. If the period elapses without any of them, the gain no longer has to be self-assessed.

Unlike the paragraph 4 deferral, discussed in the next section, no guarantee is required and no late-payment interest accrues. It is the most favourable regime.

It was originally designed to bring Spanish exit taxation into line with CJEU case law on freedom of establishment and free movement.

Does Switzerland fall within paragraph 6?

Yes, even though Switzerland is neither an EU nor an EEA Member State. The DGT confirmed this in binding ruling V-1781-22, of 27/07/2022, relying on the Agreement on the free movement of persons between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, signed in Luxembourg on 21/06/1999.

The reasoning builds on the Wächtler judgment (CJEU, C-581/17, 26/02/2019), which held contrary to the Agreement the legislation of a Member State taxing latent gains when the taxpayer moves to Switzerland, whereas a taxpayer who stays is taxed only when the gain is realised.

The DGT concludes that paragraph 6 applies equally to a move to Switzerland. In V-1781-22 the taxpayer was a Swiss national; in our opinion, the extension covers anyone within the personal scope of the Agreement (EU and Swiss nationals). The DGT reiterated the criterion in ruling V-1648-26, of 18/06/2026, adding that a gift of the holdings to the spouse during the period requires the gain on the gifted holdings to be self-assessed. We have commented on it in Exit tax and relocation to Switzerland (V1648-26).

If Switzerland fits both paragraph 4 and paragraph 6, which should be chosen?

Switzerland has a double taxation treaty (DTT) with Spain, signed on 26/04/1966 and subsequently amended, with an exchange-of-information clause; a temporary relocation to Switzerland could therefore also qualify under paragraph 4. But paragraph 6 is more favourable: ten years (instead of five), no guarantee, no late-payment interest and no requirement that the move be temporary.

Save in unusual cases, the option we recommend for a move to Switzerland is paragraph 6. The communication to the Spanish Tax Agency (AEAT) should expressly state the election for the paragraph 6 regime, relying on rulings V-1781-22 and V-1648-26.

Which circumstances require the gain to be self-assessed within the ten-year period?

Paragraph 6.a) lists three.

(i) An inter vivos transfer of the shares or equity interests: sale, gift or contribution to a company. If the shares are sold within the period for less than their market value on departure, the gain is reduced by that difference (paragraph 6.b).

(ii) Ceasing to be resident in an EU or EEA State: if, after settling in France, the taxpayer moves to Dubai four years later, the gain must be self-assessed.

(iii) Failure to comply with the reporting obligation of paragraph 6.c), which covers the election for the regime, the gain arising, the State to which residence is moved with the address and any later changes, and continued ownership of the shares or equity interests.

What about a transfer on death during the period?

A transfer on death is not among the circumstances in paragraph 6.a). In our opinion, it does not require the deferred gain to be self-assessed. If the heir is an IRPF taxpayer, the heir’s acquisition value will be the one resulting from the Inheritance and Gift Tax (ISD) rules (art. 36 LIRPF).

We are not aware of any express administrative ruling, so the degree of certainty is medium. Where the amounts justify it, a binding ruling request is advisable.

5. Relocation to third countries: the paragraph 4 deferral

If the move is to a country outside the EU and the EEA, other than Switzerland, is deferral available?

It depends. Paragraph 4 of article 95 bis provides a second deferral regime, which in all cases requires the change of residence to result from a temporary relocation and applies in two situations.

The first is a temporary relocation for work reasons to a country or territory that is not a tax haven.

The second is a temporary relocation for any other reason, provided the destination country has a DTT with Spain containing an exchange-of-information clause.

Unlike paragraph 6, paragraph 4 requires an application and a guarantee, which may be constituted wholly or partly over the securities themselves, and late-payment interest accrues under Law 58/2003, of 17 December, General Tax Law (LGT). The period is five years; only for work-related relocations may an extension of up to five additional years be requested where the circumstances justify a longer temporary relocation.

Its logic is that of a deferral conditional on return, hence the temporality requirement. If the taxpayer becomes subject to IRPF again within the period without having transferred the shares, the deferred tax debt is extinguished, together with the interest accrued.

Which countries fit paragraph 4?

In the work-related case, any country or territory that is not a tax haven. In the “any other reason” case, States with a DTT containing an exchange-of-information clause: among them, the United States, the United Kingdom, Singapore, Andorra, Switzerland (which also falls within paragraph 6), the United Arab Emirates, Canada or Australia. In both cases, the relocation must be temporary.

The Ministry of Finance publishes the list of treaties in force. The practical filter is to check that the treaty text contains the exchange-of-information clause.

DGT ruling V-0474-25, of 25/03/2025, concerns a taxpayer holding 43.74 per cent of a Spanish limited company who moved her residence to the United States in 2018 and obtained the paragraph 4 deferral with a bank guarantee, later extended. The ruling does not state the reason for the relocation.

What if the move to a treaty country with exchange of information is not work-related?

Paragraph 4 allows this second route: it applies “for any other reason” provided the temporary relocation is to a country with a DTT containing an exchange-of-information clause. Temporality is a requirement here too; in our opinion, a move intended to be permanent falls outside the wording of the provision.

What happens with a corporate reorganisation (demerger, merger, share exchange) during the deferral?

In the same ruling V-0474-25, the DGT concludes that a total demerger under the tax-neutrality regime of Chapter VII of Title VII of Law 27/2014 on Corporate Income Tax (the FEAC regime) does not cause the paragraph 4 deferral to lapse.

The interests received in the beneficiary companies are treated, for article 95 bis purposes, as subrogated to those of the demerged company, and the deferral continues on the terms granted. The taxpayer proposed to notify the AEAT of the transaction and identify the resulting interests for the purposes of the guarantee.

The ruling concerns the paragraph 4 deferral. We consider it reasonable to extend the subrogation criterion to the paragraph 6 regime, although the DGT has not addressed the point.

Andorra, a specific case.

Andorra has a DTT with Spain, signed on 08/01/2015 and in force since 26/02/2016, with an exchange-of-information clause.

Paragraph 4 nevertheless requires the move to be a temporary relocation; in our view a move intended to be permanent falls outside its wording. Andorra is not an EU or EEA State, so paragraph 6 does not apply either. On this reading, a permanent move to Andorra requires the exit tax to be paid in the self-assessment for the last period of residence, without prejudice to the paragraph 5 refund if residence is recovered without the shares having been transferred.

In ruling V-0666-25, discussed above in relation to bitcoin, the move to Andorra was permanent and the DGT did not address deferral.

6. Relocation to a tax haven: paragraph 7

What happens if the move is to a jurisdiction classified as a tax haven?

There is no deferral: a Spanish national who moves to a tax haven remains an IRPF taxpayer in the year of the move and the four following years (art. 8.2 LIRPF), and paragraph 7 requires immediate allocation. Paragraph 6 does not apply either, as it is limited to the EU and the EEA (and, according to the DGT, Switzerland).

Paragraph 7 applies article 95 bis even though the taxpayer does not lose that status under article 8.2 LIRPF. The gain is allocated to the last tax period in which the taxpayer had habitual residence in Spain. If the shares are later transferred in a period in which the taxpayer is still subject to IRPF, the acquisition value is the market value used to compute the article 95 bis gain, which avoids double taxation.

The list of non-cooperative jurisdictions is the one in Order HFP/115/2023, of 9 February, as amended by Order HAC/649/2026, of 21 June. The latter removes Barbados, Dominica, Gibraltar, Seychelles, Trinidad and Tobago and Samoa’s offshore regime from the list, with effect for tax periods beginning on or after 28/06/2026 (for IRPF, from 2027), and adds Russia’s international holding companies regime, with effect for periods beginning on or after 28/12/2026.

7. Interaction with the inbound workers’ regime (Beckham Law): paragraph 8

If the taxpayer opted for the Beckham regime, does the exit tax apply on departure?

Paragraph 8 of article 95 bis lays down a specific rule for taxpayers who opted for the special regime for workers posted to Spain (article 93 LIRPF, known as the Beckham regime).

The ten-period count in paragraph 1 starts from the first period in which the special regime no longer applies. The years under the regime therefore do not count towards the ten out of fifteen.

The practical consequence is clear: a taxpayer who uses the full six years of the regime and leaves in the seventh does not reach ten periods as a resident under the general rules. The exit tax does not apply on this ground, unless the taxpayer remains a resident under the general rules long enough to complete the ten.

On the general operation of the regime (eligibility, prior non-residence requirement, grounds for exclusion), we refer to our Frequently asked questions about the Beckham Law in this Spanish Tax Journal.

If the taxpayer returns to Spain after some years abroad and opts again for the Beckham regime, what happens to the exit tax paid or deferred?

The Beckham regime requires the taxpayer not to have been resident in Spain in the five preceding tax periods. If that period elapses after departure and the taxpayer opts again for the regime, the exit tax position may have been closed in one of two ways.

If the taxpayer paid the exit tax, a rectification may be requested under paragraph 5 on becoming an IRPF taxpayer again, as explained in the next section.

If the taxpayer opted for the paragraph 6 regime and none of the circumstances in paragraph 6.a) has occurred, the provisions of article 95 bis cease to have effect when the taxpayer becomes subject to IRPF again (paragraph 6.d).

In any event, a sequence of departure, return and renewed election for the regime requires the period of non-residence to be carefully documented.

8. Return rule: paragraph 5

If the taxpayer leaves and returns to Spain without having transferred the shares, what happens to the exit tax paid?

If the taxpayer becomes subject to IRPF again without having transferred ownership of the shares or equity interests, a rectification of the self-assessment may be requested in order to obtain a refund of the amounts paid under article 95 bis.

The refund is governed by article 31 LGT, with one special feature: late-payment interest accrues from the date of payment until the date on which the refund is ordered. The request may be filed once the filing period for the first tax period that must be declared for IRPF purposes after the return has ended.

Paragraph 5 sets no deadline for the return: unlike the five years of paragraph 4 or the ten years of paragraph 6, it only requires that the shares not have been transferred. However, from the moment the request can be filed, the four-year limitation period for the right to obtain the refund begins to run (arts. 66.c and 67.1 LGT).

What if part of the shares was transferred during the period of non-residence?

In our opinion, the rectification is available for the holdings retained on return; the part transferred remains definitively taxed on the terms in which the regime was applied on departure. It is advisable to document clearly what was transferred, when and for what value.

9. Edge cases

Unvested stock options or RSUs: do they count for article 95 bis?

Unexercised options (stock options) and restricted stock units (RSUs) pending vesting are not, strictly speaking, shares or equity interests.

In our opinion, they do not count until exercise or vesting, as they are not shares or equity interests (the objective scope of art. 95 bis). A distinction should nevertheless be drawn: if the options are deep in the money and exercise is practically automatic, or if departure coincides with a contractual acceleration clause that makes them exercisable, the AEAT might attempt a recharacterisation.

In ordinary conditions the risk is low. In complex remuneration packages or with vesting schedules linked to departure, the point should be analysed in detail.

Interposed holding company in Luxembourg, the Netherlands or Switzerland: does it take the assets out of the regime?

No. The taxpayer’s interests in a holding company, resident or not, are themselves shares or equity interests in an entity and count for article 95 bis purposes at their market value. In ruling V-1648-26, the DGT includes in the computation the taxpayer’s shares in a Swiss company wholly owned by him.

Interposing the holding company before departure does not take the assets out of the regime either: contributing the holdings to the holding company is a transfer, and only a share exchange under the FEAC regime with a valid economic reason defers the gain, without excluding the new interests from the computation. Outside that route, articles 15 (conflict in the application of tax rules) and 16 (sham transactions) LGT apply.

Startup founder with a debatable valuation: how is the declared market value defended?

Paragraph 3.b) of article 95 bis allows a market value different from the one resulting from the default rules (net equity or capitalisation at 20 per cent) to be proven.

The defence rests on documentation: recent signed term sheets, valuations of comparable transactions, a valuation report by an independent expert, the capitalisation table (cap table, with percentages and prices per share) and the shareholders’ agreements.

A recent funding round is usually the strongest reference when it coincides in time with departure.

Assets held in fiduciary structures (trusts, private-interest foundations): who is the owner for article 95 bis purposes?

For the DGT, the trust is not recognised in Spanish law: contributions to a trust, whether revocable or irrevocable, have no effect and the settlor remains the owner of the contributed assets (V-1991-08, of 30/10/2008; V-0022-25, of 09/01/2025, which specifically concerns irrevocable trusts). The contributed shares are therefore, in principle, counted in the settlor’s assets for article 95 bis purposes.

The DGT allows one exception: where, under the trust arrangements and the facts, the beneficiary’s powers of disposal amount to ownership, the transfer is deemed to take place on contribution. That assessment is for the tax authorities and requires review of the trust deed, the letters of wishes and the rest of the documentation.

On the treatment of trusts in Spanish taxation, we refer to our commentaries on trusts in this Spanish Tax Journal, including the analysis of the DGT criterion on the tax transparency of foreign trusts.

The exit tax is one of the most sensitive IRPF provisions when planning the departure of a significant estate. The above is a general map, not an opinion: each case requires a review of the facts and the documentation before any decision is taken.

Sources

• DGT, Binding ruling V-0666-25, of 14/04/2025 (cryptocurrencies and exit tax; permanent move to Andorra): link
• DGT, Binding ruling V-1781-22, of 27/07/2022 (move to Switzerland, applicability of paragraph 6): link
• DGT, Binding ruling V-1648-26, of 18/06/2026 (move to Switzerland, Swiss holding company in the computation and gift to the spouse during the period): link
• DGT, Binding ruling V-0474-25, of 25/03/2025 (total demerger under the FEAC regime during the paragraph 4 deferral): link
• DGT, Binding ruling V-0022-25, of 09/01/2025 (contribution of shares to irrevocable trusts): link
• DGT, Binding ruling V-1991-08, of 30/10/2008 (non-recognition of the trust in Spanish law): link
• CJEU, Case C-581/17, Wächtler, judgment of 26/02/2019 (exit tax and the EC-Switzerland Agreement on the free movement of persons): link
• CJEU, Case C-9/02, Lasteyrie du Saillant, judgment of 11/03/2004 (exit taxation and freedom of establishment): link

1. Basic questions

What exactly is this regime?

It is a special tax regime for individuals who become Spanish tax residents as a result of moving to Spain. While it applies, the individual remains a Personal Income Tax (IRPF) taxpayer, but the tax due is computed under the Non-Resident Income Tax rules, with certain special rules. All employment income obtained during the regime is deemed obtained in Spain and taxed at 24% up to EUR 600,000 a year and at 47% above that amount (article 93.2.b) and e) LIRPF). Savings income obtained in Spain is taxed under its own scale of 19% to 30%. Other foreign-source income (dividends, interest, rents or gains on assets located outside Spain) stays outside the Spanish tax base.

Why is it called the “Beckham Law”?

The informal name comes from the footballer David Beckham, whose move to Spain coincided with the introduction of the regime by Law 62/2003, which added a paragraph 5 to article 9 of Law 40/1998 on Personal Income Tax. Its current technical name is the special tax regime applicable to workers, professionals, entrepreneurs and investors relocated to Spanish territory, governed by article 93 of the Personal Income Tax Act (LIRPF) and articles 113 to 120 of its Regulations (RIRPF).

For how long can I enjoy it?

For the tax period in which Spanish tax residence is acquired and the five following periods. The Regulations specify that the first period is the first calendar year in which, after the move, presence in Spain exceeds 183 days (article 115 RIRPF). It cannot be extended. Once it ends, the individual is taxed like any other Spanish resident: on worldwide income and under the general progressive scale.

What taxes does it actually save me?

Essentially:

1. Flat IRPF rate on employment income: 24% on employment income up to EUR 600,000 and 47% above. Outside the regime the top marginal rate of the general scale would apply, which, depending on the region, ranges approximately from 45% to 54%.
2. Spanish-source savings income: dividends, interest and gains on Spanish assets are taxed under a separate scale of 19% to 30% (article 93.2.e).2º LIRPF).
3. Foreign non-employment income outside the IRPF: dividends, interest, rents and gains obtained outside Spain do not enter the Spanish tax base.
4. Form 720: according to the published criterion of the Tax Agency, taxpayers under the regime are not required to file it (see below).

The Wealth Tax and the Temporary Solidarity Tax on Large Fortunes still apply, but only by real obligation, that is, on the value of assets and rights located, exercisable or to be performed in Spain.

Who decides whether I am entitled to apply the regime?

The option is exercised by filing Form 149, and the Tax Agency issues, where appropriate, within ten working days a certificate that the taxpayer hands to the payer so that withholding is applied at the regime rate (article 119.4 RIRPF). Effective control comes later, in any subsequent tax audit. Taxpayers with complex profiles often request a binding ruling from the Directorate-General for Taxes (DGT) before moving, to reduce uncertainty.

If I am self-employed, can I access the regime?

Not as a general rule. The regime is designed for employees, directors of entities and the cases in article 93.1.b).3º and 4º LIRPF: the entrepreneur whose activity has a favourable report from ENISA under article 70 of Law 14/2013, and the highly qualified professional who provides services to start-ups or carries out training, research, development and innovation activities, provided that the remuneration for those activities exceeds 40% of their total business, professional and employment income.

These two routes are in fact the only ones that allow an economic activity to be carried on during the regime (article 113.2 RIRPF). The independent professional who comes to practise individually (doctor, lawyer, architect or consultant) does not fit within the regime. The alternatives are to incorporate an operating company and move to become its director, with causation evidenced and without falling foul of the passive-holding-entity filter, or, if the activity is innovative, to obtain the ENISA report and access as an entrepreneur.

Am I entitled to family, child or housing deductions under the regime?

No. Tax is computed under the Non-Resident Income Tax rules, not those for ordinary residents. The personal and family allowance, reductions for pension plan contributions and the maternity deduction do not apply. The rate is flat, with no relief for personal or family circumstances.

This is the trade-off of the regime: the rate saving is large, but the system of allowances, reductions and deductions for residents is lost. With high employment income the regime usually remains favourable even with dependants. With more moderate income and significant family commitments, the difference narrows and the numbers should be run before electing.

2. Do I meet the requirement of not having lived here before?

How is “non-residence” measured in the previous five years?

The taxpayer must not have been resident in Spain during the five tax periods preceding the one in which the move takes place (article 93.1.a) LIRPF). The test is applied by tax periods, that is, by calendar years, not on a rolling basis. If the move takes place in 2026, the years 2021, 2022, 2023, 2024 and 2025 are examined, and the individual must have been non-resident in each of them.

I did a master’s in Madrid four years ago, does that block the regime?

It depends on whether the individual was a Spanish tax resident in that year. A twelve-month stay with more than 183 days of presence in Spain may have resulted in tax residence for that year, even if it was not declared. Where there is reasonable doubt, a file of evidence should be prepared: municipal register entries and removals, lease agreement, dates of entry and exit, tax returns filed (or not) in the home country and a tax-residence certificate from that country. If the individual was resident in another country that year and can prove it, the regime remains open.

My family moved to Spain before me, does that affect me?

It is a delicate point. Article 9.1 LIRPF presumes, unless proven otherwise, that the taxpayer is resident in Spain when their spouse (not legally separated) and dependent minor children habitually reside here. The presumption is rebuttable, but the burden of proof lies with the taxpayer. If the family moved first for personal reasons (international protection, children’s schooling or another unforeseen decision), it will be necessary to document that the taxpayer’s centre of interests remained outside Spain during those years.

One example is ruling V1209-25: the DGT recalled the presumption in article 9.1 LIRPF in a case where the family had been in Spain since 2022, without ruling on whether it had been rebutted, a question of fact for the tax management and audit bodies.

I am registered on the municipal register in Spain even though I have not lived here, does that count as residence?

Not by itself. The municipal register (padrón) is a local record and does not determine tax residence. In an audit, however, it is an indicator that the Administration will weigh together with others (home ownership, vehicles, bank accounts, utility consumption or health card). A well-documented body of evidence can rebut it, although it complicates the defence. Before planning access to the regime, the registration should be reviewed and, where appropriate, cancelled.

I am a Spanish national who has lived abroad for ten years or more and is returning, can I apply?

Yes. The regime does not distinguish by nationality. Law 28/2022 reduced the required prior non-residence from ten to five tax periods, which eases access for those returning after a period abroad. A returning Spaniard must meet the same requirements as any other taxpayer, including one of the circumstances in article 93.1.b) LIRPF.

3. For what reason do I have to come to Spain?

What reasons allow me to enter the regime?

Article 93.1.b) LIRPF requires the move to take place, in the first year of the regime or the preceding year, as a result of one of the following circumstances:

1. An employment contract (except the special employment relationship of professional athletes under RD 1006/1985): an employment relationship with an employer in Spain, a secondment ordered by the employer with a letter of assignment, or work performed remotely from Spain using exclusively computer, telematic and telecommunication means.
2. Acquisition of the position of director of an entity.
3. An entrepreneurial activity qualified as such by a favourable ENISA report (article 70 of Law 14/2013).
4. Activity as a highly qualified professional providing services to start-ups or carrying out training, research, development and innovation activities, provided that the remuneration for those activities exceeds 40% of their total business, professional and employment income.

The first two are the most common. The last two have their own accreditation requirements (articles 69 to 72 of Law 14/2013 and article 113.2 RIRPF).

I work remotely for a foreign company, does that work for the regime?

Yes. Law 28/2022 added international remote work: it is enough that the employment activity is performed remotely from Spain using exclusively computer, telematic and telecommunication means and systems. The DGT has accepted access to the regime in these cases in rulings V0476-26 and V1115-25.

Do I need the international remote-work visa of Law 14/2013?

It is not mandatory. The provision refers to the visa with the words “in particular”, so in our opinion it is a case of automatic compliance rather than the only one. Ruling V0476-26 accepted access for a remote worker without any mention of a visa.

Even so, the visa makes the requirement much easier to prove.

I come as director of a Spanish company, does that qualify?

Yes, this is the route in article 93.1.b).2º, which refers to “an entity” without requiring it to be Spanish. There are two conditions:

1. Causation between the move to Spain and the acquisition of the position. An appointment made long before the move, or unconnected with it, raises difficulties. The DGT has stated in V1209-25 and V1622-24 that causation is a question of fact to be assessed by the audit bodies.
2. Passive-holding-entity filter: if the entity is a passive holding entity (entidad patrimonial) under article 5.2 of the Corporate Income Tax Act (LIS), the director may not hold an interest that makes the entity a related party under article 18 LIS (an interest of 25% or more). If the entity is not a passive holding entity, the size of the interest is irrelevant for these purposes.

I come as a member of the board of trustees (patrono) and general director of a Spanish foundation, does that also count?

Yes. The DGT accepted it in ruling V2095-24, in line with V3283-17: the position of member of the board of trustees of a Spanish foundation allows access under article 93.1.b).2º. If the individual also takes on the position of general director with remuneration (authorised under article 15.4 of Law 50/2002), that remuneration is employment income taxed at 24% under the regime.

V2095-24 itself accepts that keeping positions on foreign boards of directors does not prevent access to the regime. The remuneration for those positions is, however, employment income and, during the regime, is deemed obtained in Spain (article 93.2.b) LIRPF), without prejudice to the international double taxation credit, subject to the limit in article 114.2.b’) RIRPF.

I come to set up my own company in Spain, do I qualify?

There are two possible routes:

1. Article 93.1.b).2º: moving to become director of the company being incorporated. The causation requirement and the passive-holding-entity filter described above apply. It is the most widely used route.
2. Article 93.1.b).3º (entrepreneurial activity): if the project is innovative or of special economic interest and obtains a favourable ENISA report, access is as an entrepreneur. It is a less travelled route, but it carries no shareholding limit of the passive-holding-entity kind and, in addition, allows an economic activity to be carried on during the regime.

4. Risks and critical areas

Does my foreign employer run the risk that the Tax Agency says it has a “permanent establishment” in Spain?

It is one of the most significant risks. In rulings V0476-26 and V1115-25 the DGT addressed the employee’s access to the regime; it was not asked, and did not address, whether the employee’s activity from Spain may constitute a permanent establishment of the foreign employer. These are separate questions: the employee may be under the regime while the employer has a permanent establishment in Spain because of that activity, especially if the employee holds a senior position with decision-making authority.

The Commentaries on the OECD Model Tax Convention, in their updated version, analyse when an employee’s home may constitute a fixed place of business of the employer; there is a risk that this will be found where work from Spain is habitual and serves a commercial reason of the employer. If a permanent establishment is found to exist, the employer becomes taxable in Spain on the attributable profits, with the corresponding formal and substantive obligations.

My family are shareholders of the company, are the interests aggregated for the filter?

The question only arises if the entity is a passive holding entity. Article 18.2 LIS does not aggregate interests: it sets the threshold (25% or more) in the relationship between the shareholder and the entity and, separately, treats the entity as related to the spouses and relatives up to the third degree of its shareholders or directors. In the example of two spouses at 50% each, each one exceeds the threshold alone, so if the entity is a passive holding entity, neither could access the regime by this route. If the individual’s own interest is below 25% but the family’s combined interest is significant, there is a risk that the Administration will find a related-party relationship under article 18.2.c) LIS; this should be analysed case by case.

What if my company only holds real estate, or only manages investments?

It is probably a passive holding entity under article 5.2 LIS, which applies where more than half of its assets consist of securities or of assets not used in an economic activity. The most relevant exceptions are holdings of at least 5% held for one year with the corresponding organisation of resources (article 5.2.d) LIS) and the letting of real estate with at least one person employed under an employment contract on a full-time basis (article 5.1 LIS).

If the entity is a passive holding entity, the shareholding limit under article 18 LIS described in the previous answer applies.

I keep boards of directors in other countries, is that a problem for the regime?

Not by itself. Ruling V2095-24 accepted that keeping director positions abroad does not prevent access to the regime. It should be borne in mind that the remuneration for those positions is employment income and, during the regime, is deemed obtained in Spain (article 93.2.b) LIRPF), without prejudice to the international double taxation credit, subject to the 30% limit in article 114.2.b’) RIRPF.

What happens if I change jobs within the six years?

The regime may continue. Ruling V1208-25 reiterates the criterion of V0432-17 and V1739-17: if, after the relationship that gave rise to the move ends, a new employment or director relationship begins that meets the requirements of article 93, the regime continues. The DGT makes this subject to the initial relationship having caused the move “in a real and effective manner”, to its ending “for reasons beyond the taxpayer’s control” and to any intervening period of unemployment or inactivity being brief.

The new relationship need not be with the same entity or keep the original form: in V1208-25 the taxpayer moved from employee to director.

If the new company does not fit the requirements, do I lose the regime?

Yes. If the new relationship does not meet the requirements of article 93, the taxpayer is excluded. Exclusion takes effect in the tax period in which the breach occurs (article 118.1 RIRPF), and an excluded taxpayer cannot elect the regime again (article 118.5 RIRPF). From that period the taxpayer is taxed as an ordinary resident on worldwide income.

What consequences does losing a requirement subsequently entail?

The taxpayer must notify the tax authorities within one month of the breach, using Form 149 (article 118.2 RIRPF). Exclusion affects the whole of that tax period, which is assessed under the ordinary resident rules, but not the earlier periods in which the requirements were met. Failure to notify could give rise to penalties.

As for family members under the regime, the renunciation or exclusion of the principal taxpayer entails that of all of them and, if the principal has already notified it, they need not notify separately. Divorce or annulment of the marriage does not, by itself, cause the exclusion of the family member (article 118.4 RIRPF).

5. Wealth and money outside Spain

Under the regime, do I have to be taxed in Spain on my wealth and income from abroad?

It depends on the type of income. For IRPF purposes, tax is due on income obtained in Spain and, in any event, on all employment income obtained during the regime, whoever the payer and wherever the work is performed (article 93.2.b) LIRPF), except income deriving from activity carried out before the move (article 114.2.a) RIRPF). Other foreign-source income (dividends, interest, rents and gains) stays outside.

For the Wealth Tax and the Temporary Solidarity Tax on Large Fortunes, tax is due only by real obligation, that is, on assets and rights located in Spain.

Do I have to file the famous Form 720 on foreign assets?

No, according to the Tax Agency’s criterion: since they are not taxed on worldwide income, taxpayers under article 93 LIRPF are not required to file Form 720. This is not an express exemption in the rules but an administrative criterion published in the Tax Agency’s FAQs. In our view the same reasoning should extend to Form 721 (virtual currencies held abroad), although we are not aware of an express administrative statement on the point. The same FAQs state that the regime does not extend to the rest of the household; that criterion predates article 93.3 LIRPF, and in our opinion the reasoning should also cover family members under that paragraph.

When the regime ends, the taxpayer, as an ordinary resident, becomes subject to the reporting obligation for foreign assets and rights held at 31 December.

What about my trusts or family foundations outside Spain?

It is complex ground for anyone coming from a legal system that recognises the trust. Spain does not recognise it as a legal institution and, for tax purposes, the DGT considers that the legal relations between the settlor and the beneficiaries take place directly between them, as if the trust did not exist.

In practice there are two relevant consequences (DGT V0022-25 and V1700-25):

1. Contributions to the trust have no effect for these purposes: the settlor retains ownership of the contributed assets.
2. The transfer from the settlor to the Spanish-resident beneficiary is treated as direct and subject to Inheritance and Gift Tax (ISD) by personal obligation. In V1700-25 the beneficiary was under the article 93 regime, which did not change that conclusion.

How am I taxed on a Spanish property under the regime?

A property in Spain gives rise to three basic taxes:

1. IRPF (under Non-Resident Income Tax rules): if it is let, the rental income is taxed as income obtained in Spain. If it is not let and not used in an economic activity, income is imputed for personal use and taxed at 24%. In our opinion, the main home should not give rise to imputed income, although the point is not expressly settled for taxpayers under the regime.
2. Wealth Tax and Temporary Solidarity Tax on Large Fortunes: by real obligation. For the Wealth Tax, the rules of the region where the greatest value of the assets and rights located in Spain lies may apply (with reliefs such as Madrid’s). The Solidarity Tax, by contrast, is a State tax that cannot be ceded to the regions and only allows a deduction for the Wealth Tax actually paid: if the Wealth Tax is reduced by regional relief, the Solidarity Tax applies without that reduction to Spanish net assets above EUR 3,000,000.
3. IBI (Real Estate Tax): an annual municipal tax on the cadastral value.

Does my country of origin still consider me a tax resident?

It may, and this should be resolved before the move. Each State has its own rules and, in many cases, leaving does not simply end tax liability. The United States taxes on the basis of citizenship; France applies the criteria of article 4 B of the Code général des impôts; other States, such as Germany, also provide for exit taxation or extended liability after a change of residence.

If both States treat the taxpayer as resident, the conflict is resolved by the double taxation treaty, where there is one, through the tie-breaker rules of its article 4.2 (permanent home, centre of vital interests, habitual abode and nationality).

How is my Spanish tax residence under the Beckham regime evidenced?

The Tax Agency issues taxpayers under the regime the tax-residence certificate provided for in article 120.1 RIRPF (annex 9 of Order HAC/3626/2003), which certifies residence in Spain for IRPF purposes under the special regime, not for treaty purposes. A certificate for treaty purposes can only be issued in the cases designated by the Ministry, on condition of reciprocity (article 120.2 RIRPF). There is therefore a risk that the source State will deny treaty benefits on income the taxpayer obtains there.

Does the regime affect the pension I already receive from outside Spain?

Pensions are employment income (article 17.2.a) LIRPF). They fall outside the rule in article 93.2.b) LIRPF to the extent that they derive from activity carried out before the move (article 114.2.a) RIRPF), so a foreign pension for work prior to the move is not taxed in Spain under the regime, unless it were deemed obtained in Spain under the Non-Resident Income Tax rules. The pension will continue to be taxed in the paying State under its own rules.

If that State applies the treaty, the general rule in treaties following the OECD Model is that government pensions (paid by a State for services rendered to that State) are taxable only in the paying State, and private pensions only in the recipient’s State of residence, subject to treaty exceptions. Given the limited scope of the regime’s residence certificate, the paying State might not recognise that residence for treaty purposes.

What about my stock options or RSUs vested before, during or after the regime?

The timing rules determine the year in which the income is taxed; the rule in article 93.2.b) LIRPF determines where it is deemed obtained:

• Vested before the move: the income belongs to the period before the regime and will be taxed under the rules of the country of residence at that time.
• Vested during the regime: this is employment income which, under article 93.2.b) LIRPF, is deemed obtained in Spain and taxed at 24% (47% above EUR 600,000) regardless of where the work was performed during the regime. Only the portion deriving from activity carried out before the move falls outside that rule (article 114.2.a) RIRPF), although it may still be taxed in Spain if deemed obtained in Spain under the Non-Resident Income Tax Act. If the income is also taxed abroad, the international double taxation credit is available subject to the limit in article 114.2.b’) RIRPF.
• Vested after the regime: the taxpayer is already an ordinary resident, taxed under the general scale on the whole amount.

The portion deriving from activity before the move is usually determined in proportion to the part of the vesting period worked before the move. This is one of the areas where planning before the move has the greatest impact.

6. Family, application and end of the regime

Can my partner also apply for the regime?

Yes. Since Law 28/2022 (article 93.3 LIRPF), the spouse or, absent marriage, the other parent of the children may apply, provided that:

1. They move with the principal taxpayer or later, before the end of the first tax period in which the regime applies to the principal (if they move earlier, they may not acquire residence before that period: article 113.3 RIRPF).
2. They acquire Spanish tax residence, have not been resident in the five preceding periods and do not obtain income through a permanent establishment in Spain.
3. The sum of the taxable bases of all family members under the regime is lower, in each period, than that of the principal taxpayer.

Each family member files their own notification (Form 149) within six months of their own arrival in Spain or, if later, within the principal taxpayer’s deadline (article 116.1.b) RIRPF). The regime applies to them for as long as it applies to the principal taxpayer.

And my children?

Coverage extends to children under 25 (or of any age if disabled), with age assessed when the option is exercised, under the same requirements as the spouse, including that the sum of the family members’ taxable bases be lower than the principal taxpayer’s. If they work in Spain, their salary is taxed at 24%.

What about children over 25?

They fall outside article 93.3 (unless disabled). If they wish to apply for the regime, they must meet all the requirements of article 93.1 on their own: five periods without Spanish residence, their own qualifying circumstance (employment contract, director position, etc.) and a separate notification.

How do I apply for the regime?

By Form 149, filed electronically through the Tax Agency’s e-office. Under article 119.2 RIRPF, the following must be attached:

• Identification of the taxpayer and, where applicable, of the employer, the entity of which the taxpayer is director, the start-up, or the entity where the training, research, development and innovation activities are carried out.
• Evidence of registration with Spanish social security, or documentation allowing the home-country social security legislation to continue to apply (A1 certificate or equivalent), and, where applicable, the residence permit.
• The documentation specific to each route: the employer’s document on the employment relationship, letter of assignment, the entity’s document stating the date on which the director position was acquired (and, if the entity is a passive holding entity, evidence that the interest does not make it a related party), ENISA report, or proof of highly qualified professional status.

The Tax Agency issues, within a maximum of ten working days, the certificate to be handed to the payer (article 119.4 RIRPF). For each year of the regime, the special return under article 114.4 RIRPF (Form 151) is filed, not Form 100.

Within what time limit do I have to apply?

Six months from the start date of the activity shown in the Spanish social security registration or in the documentation allowing the home-country social security legislation to continue to apply (article 116.1.a) RIRPF).

Once that deadline has passed, the regime is no longer available even if all the substantive requirements are met; it is a strict, non-extendable deadline. Preparation should start in the first days after the move.

Can I voluntarily renounce the regime?

Yes. Renunciation is notified during November and December of the year before the one in which it is to take effect, using Form 149 (article 117 RIRPF). It is final: a taxpayer who renounces cannot elect the regime again. Renunciation by the principal taxpayer entails the exclusion of the family members under the regime; they may also renounce individually.

What happens when the six years end?

From the seventh period, the individual is taxed as an ordinary tax resident:

• IRPF on worldwide income under the general scale (with a top marginal rate that depends on the region).
• Wealth Tax and Temporary Solidarity Tax on Large Fortunes by personal obligation, that is, on worldwide assets.
• Forms 720 and 721 where their thresholds are exceeded.
• International double taxation credit for foreign income taxed at source, on the terms of article 80 LIRPF.

The transition should be prepared in advance: review of portfolios, of foreign companies and, where relevant, of future residence.

Once outside the regime, can I re-enter?

Not immediately. The requirement of not having been resident in Spain during the five preceding tax periods would have to be met again, and the years under the regime are years of Spanish residence, even though tax was computed under Non-Resident Income Tax rules. In practice, six years under the regime plus five years abroad mean a minimum horizon of eleven years. Moreover, a taxpayer who renounced or was excluded cannot elect the regime again (articles 117.4 and 118.5 RIRPF).

Final notes

This page is a map, not an opinion. Each move to Spain under article 93 LIRPF requires individual analysis.

We have developed some of these questions in the following analyses in this Spanish Tax Journal:

• International remote work under the article 93 regime: DGT V0476-26 and V1115-25
• Access through the director position (causation, passive-holding filter and continuity): DGT V1208-25, V1209-25 and V1622-24
• 100% quasi-shareholder in a Spanish operating company: DGT V1983-24
• Trustee and general director of a Spanish foundation: DGT V2095-24
• Foreign tax-residence certificate under a tax treaty: STS 778/2023 and STS 971/2025
• Foreign trust and Beckham regime: DGT V1700-25 and V0022-25

Sources

• DGT, binding ruling V-0476-26, of 02/03/2026 (international remote work for a foreign employer): link
• DGT, binding ruling V-1115-25, of 26/06/2025 (international remote work with a Law 14/2013 visa): link
• DGT, binding ruling V-1209-25, of 03/07/2025 (director, causation and the family presumption in article 9.1 LIRPF): link
• DGT, binding ruling V-1208-25, of 03/07/2025 (change from employee to director during the regime): link
• DGT, binding ruling V-1622-24, of 03/07/2024 (director holding 50% alongside her spouse, causation): link
• DGT, binding ruling V-1983-24, of 17/09/2024 (100% indirect interest in a non-passive entity): link
• DGT, binding ruling V-2095-24, of 26/09/2024 (foundation trustee and general director; foreign boards): link
• DGT, binding ruling V-3283-17, of 22/12/2017 (foundation trustee as director): link
• DGT, binding ruling V-0432-17, of 17/02/2017 (continuity of the regime after a change of job): link
• DGT, binding ruling V-1739-17, of 06/07/2017 (continuity of the regime after a change of job): link
• DGT, binding ruling V-0022-25, of 09/01/2025 (trust not recognised; contribution without IRPF effect): link
• DGT, binding ruling V-1700-25, of 18/09/2025 (foreign trust; beneficiary under article 93; ISD by personal obligation): link
• Spanish Tax Agency, Form 720 FAQs, “Taxpayers required to file” (article 93 LIRPF regime): link

1. The non-residence test. Article 93.1.a) LIRPF requires that the taxpayer has not been resident in Spain during the five tax periods preceding the period of the move. The test is applied by calendar years: a single year of Spanish residence within that window, for instance because a visiting fellowship exceeded 183 days of presence, rules out the regime. The first period of the regime is the first calendar year in which, after the move, presence in Spain exceeds 183 days (article 115 RIRPF). Documenting residence in each of the previous five years is the first file to prepare.

2. The qualifying circumstance. Article 93.1.b) LIRPF requires the move to result from an employment contract, including a secondment or international remote work (b.1º), the acquisition of the position of director of an entity (b.2º), an entrepreneurial activity with a favourable ENISA report under article 70 of Law 14/2013 (b.3º), or activity as a highly qualified professional serving start-ups, or in training, research, development and innovation, with that remuneration exceeding 40% of total employment, business and professional income (b.4º). Only routes b.3º and b.4º allow an economic activity during the regime (article 113.2 RIRPF). Each route has its own evidential requirements and risks, including, for remote workers and senior employees of foreign employers, the risk of a Spanish permanent establishment of the employer, which the DGT rulings on access to the regime do not address.

3. Home-country exit taxation. The home country may tax on departure: for instance, the French exit tax on article 167 bis CGI assets or the German Wegzugsbesteuerung on substantial shareholdings. Other rules, such as the US expatriation regime (on renunciation of citizenship or long-term residence) or the UK temporary non-residence provisions (on return), operate differently. We recommend reviewing this exposure well before the move, since the available mitigation options usually need time.

4. Equity compensation and vesting schedules. Under article 93.2.b) LIRPF, all employment income obtained during the regime is deemed obtained in Spain, wherever the work was performed; article 114.2.a) RIRPF carves out income deriving from activity performed before the move, which may still be taxed in Spain if it is Spanish-source under the Non-Resident Income Tax Act. Where the income is also taxed abroad, the double taxation credit is limited to 30% of the relevant gross tax (article 114.2.b’) RIRPF). RSUs, stock options and performance shares that vest during the regime are therefore taxed in Spain at 24% or 47%, except for the portion attributable to work before the move. The vesting schedule should be mapped against the date of the move, taking into account both the home-country treatment and these rules.

5. Real estate in Spain. Existing or planned Spanish real estate has three consequences under the regime: (i) Wealth Tax by real obligation on the Spanish property; (ii) Personal Income Tax, under Non-Resident Income Tax rules, on rental income or on income imputed for a property kept for personal use; and (iii) Inheritance and Gift Tax on the property when it passes, by personal or real obligation depending on the residence of the heirs. The holding structure (direct ownership, a Spanish sociedad limitada or a foreign vehicle) should be decided before purchase, bearing in mind that article 338 of Law 6/2023 on Securities Markets may subject certain transfers of shares in real-estate-rich entities to transfer tax (ITP) or VAT as if the underlying real estate were transferred. For non-residents, gains on such shares may also be Spanish-source under the Non-Resident Income Tax Act.

6. Foreign trusts and foundations. Spain does not recognise the trust as a legal institution. The DGT applies a transparency approach: contributions to a foreign trust have no effect for these purposes, and the transfer to the beneficiary is treated as made directly by the settlor. For a beneficiary resident in Spain, including one under the regime, the settlor’s death gives rise to Inheritance and Gift Tax by personal obligation, with access to the regional rules of the region where the greatest value of the Spanish-situs estate is located or, absent Spanish assets, of the beneficiary’s region of residence (DGT V1700-25). The trust documentation, the beneficiary’s position and the location of the trust assets should be reviewed before arrival.

7. Reporting obligations. According to the Tax Agency’s published criterion, taxpayers under the regime are not required to file Form 720 on foreign assets. Each year they file the special-regime return (Form 151) under article 114.4 RIRPF, not Form 100. Other reporting obligations may apply, such as foreign-investment or external-transaction reporting to the Bank of Spain or the Ministry of Economy, depending on amounts and holdings. Banking relationships, custody arrangements and securities holdings should be inventoried and checked against these obligations.

8. Social security. Which social security system applies is governed by Regulation (EC) 883/2004 within the EU, by bilateral totalisation agreements with non-EU countries and, where neither applies, by Spanish domestic rules. The A1 certificate (or its treaty equivalent) evidences that the home-country system continues to apply during the assignment. Without an A1 (or treaty equivalent), Spanish social security will normally apply; outside the EU and absent a totalisation agreement, double contributions are a risk. The relevant document also matters for the regime itself: the six-month deadline to opt runs from the start date shown in the Spanish registration or in that document (article 116.1.a) RIRPF).

9. Day-counting and travel records. Spanish residence is determined by the 183-day test of article 9.1.a) LIRPF and the economic-interests test of article 9.1.b) LIRPF, together with the family presumption in article 9.1, and, where another State also claims residence, by the tie-breaker rules of the applicable treaty. The Supreme Court has addressed the value of the foreign tax-residence certificate under treaties in STS 778/2023 and STS 971/2025, which we have analysed separately. A contemporaneous record of travel, supported by boarding passes, invoices, calendar entries and evidence of the home in the other country, is the taxpayer’s main evidence in any later audit.

10. Wealth Tax and Solidarity Tax. Under the regime the taxpayer is subject to the Wealth Tax and the Temporary Solidarity Tax on Large Fortunes by real obligation only, that is, on Spanish-situs assets. Regional wealth-tax relief (for instance, Madrid’s 100% allowance) may apply under the rules of the region where the greatest value of the Spanish assets is located. The Solidarity Tax, however, is a State tax that cannot be ceded to the regions and only allows a deduction for the Wealth Tax actually paid; where the Wealth Tax is reduced by regional relief, the Solidarity Tax applies in full to Spanish net assets above EUR 3 million. The composition and location of the asset base is therefore a central planning variable.

11. Succession planning before arrival. On arrival the individual, as a Spanish tax resident (the special regime does not alter this for Inheritance and Gift Tax purposes), becomes liable to Spanish Inheritance and Gift Tax by personal obligation on worldwide acquisitions received. On the individual’s own death, the Spanish tax position of the heirs depends on their residence, while the individual’s residence in Spain determines which regional rules apply. Where the existing succession plan is structured under another legal system (a UK will with trusts, a US revocable living trust or a civil-law family foundation), its validity, recognition and tax treatment in Spain should be reviewed before the move. Updates to wills and beneficiary designations usually follow.

12. Family coverage under article 93.3 LIRPF. Law 28/2022 extended the regime to the spouse (or, absent marriage, the other parent of the children) and children under 25 (or of any age if disabled), provided they move with the principal taxpayer or later, before the end of the first tax period in which the regime applies to the principal. Each family member files their own Form 149 within six months of their own arrival (or within the principal’s deadline, if later), and the sum of the family members’ taxable bases must remain below the principal’s in every year. Where the spouse has significant income or wealth of their own, this condition should be modelled before the move.

This checklist does not replace individual analysis; each point involves doctrinal nuance and judgement on the facts. It is, however, a useful structure for reviewing a relocation before it takes place.

Further reading on this journal

• On international remote workers: International remote work from Spain opens the Beckham regime to the foreign executive, but leaves unresolved the risk of permanent establishment of the employer (DGT V0476-26 and V1115-25).
• On company directors: The DGT consolidates the operative map of the Beckham regime in the administrator modality: causation, passive-wealth filter and continuity (DGT V1208-25, V1209-25 and V1622-24).
• On the 100% quasi-shareholder: The 100% quasi-shareholder may benefit from the Beckham regime since Law 28/2022, unless the entity is a passive-wealth entity (DGT V1983-24).
• On foundations: The DGT confirms that the office of trustee and general director of a Spanish foundation qualifies as administrator for the purposes of the Beckham regime, and clarifies compatibility with foreign board appointments (DGT V2095-24).
• On the foreign tax-residence certificate under treaties: The Spanish Supreme Court closes the door on AEAT (STS 778/2023) and The Spanish Supreme Court reiterates the doctrine on the foreign tax residence certificate (STS 971/2025).
• On foreign trusts and Spanish inheritance tax: The DGT consolidates the tax transparency of the foreign trust (DGT V1700-25 and V0022-25).
• In general: Frequently asked questions about the Beckham Law.

Sources

• DGT, binding ruling V-1700-25, of 18/09/2025 (foreign trust; beneficiary under article 93; ISD by personal obligation and applicable regional rules): link
• DGT, binding ruling V-0022-25, of 09/01/2025 (trust not recognised; contribution without IRPF effect): link
• Spanish Tax Agency, Form 720 FAQs, “Taxpayers required to file” (article 93 LIRPF regime): link