International Structures

Twelve must-review subjects before relocating to Spain under the Beckham regime

Pre-Beckham checklist for private clients relocating to Spain — twelve subjects from non-residence test and trigger event to exit tax, real estate, trusts, wealth tax, succession and spousal coverage.

Law 49/2002 regime and non-resident foundations: prior election and formal notification, no shortcuts

The TEAC confirms that the special tax regime of Law 49/2002 is elective: non-resident foundations must exercise prior election and formal notification before the chargeable event. Retroactive application is not …

The tax regime of Law 49/2002 does not apply automatically to non-resident foundations: the TEAC requires the prior election to exclude taxation under the IRNR

Video-game virtual currency and VAT: the CJEU confines the Hedqvist doctrine and returns the transaction to the general regime

The CJEU clarifies that virtual currency confined to the internal use of a video game is not a non-traditional currency for the purposes of article 135(1)(e) of the VAT Directive and is subject to the tax under the …

The Spanish Supreme Court confirms in the VELCRO case the cross-cutting reach of the beneficial-owner concept in international taxation

VELCRO: the beneficial owner operates cross-cuttingly over Directive and treaty

The Spanish Supreme Court applies the general TRLIRNR withholding where the receiving company channels the royalties to a third party: neither the Directive 2003/49/EC exemption nor the reduced bilateral-treaty rate.

The intragroup transfer of participations by a mixed holding company forms a differentiated sector for VAT purposes, save where it entails the transfer of an autonomous economic unit

International remote work from Spain opens the Beckham regime to the foreign executive, but leaves unresolved the risk of permanent establishment of the employer

International remote work from Spain: the Beckham regime opens, but the risk zone is the employer

The DGT confirms that remote work from Spain, through exclusive telematic means, is sufficient to trigger the Beckham regime without a Spanish contract or a Law 14/2013 visa. The risk zone shifts to the foreign employer.

Compensation for a non-compete covenant received under the Beckham regime is not taxed in Spain if it derives from activity carried out abroad

The DGT consolidates the tax transparency of the foreign trust: the inter vivos contribution is not a gift for IRPF purposes and the mortis causa transfer to the resident beneficiary opens access to the regional ISD legislation

The Spanish Supreme Court reiterates the doctrine on the foreign tax residence certificate, but the first tie-breaker rule of the treaty fixes residence where the contributor identifies a permanent home

The DGT consolidates the operative map of the Beckham regime in the administrator modality: causation, passive-wealth filter and continuity

International trusts and inbound workers: the regime of article 93 of the Personal Income Tax Act does not neutralise the resident beneficiary's inheritance tax exposure under personal obligation

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

The 100 % quasi-shareholder may benefit from the Beckham regime since Law 28/2022, unless the entity is a passive-wealth entity

The Spanish Supreme Court closes the door on AEAT: a tax residence certificate issued by another State under a tax treaty cannot be displaced by domestic circumstantial evidence

The foreign transfer of holdings in a German KG holding Spanish real estate to a Familienstiftung is not subject to ITPAJD, but the DGT leaves the 314 LMV rule and the indirect real-estate capital gain under IRNR unaddressed