The Ministry of Finance has urgently resolved the situation of foreign workers who relocated to Spain in 2022 or 2023 to engage in entrepreneurial or high-skilled activities, in accordance with Law 28/2022, promoting the ecosystem of emerging companies. These professionals had the possibility to benefit from the well-known "Beckham Law," a special and advantageous tax system for expatriates, but until now, the Administration had not regulated how to take advantage of this option.

In the first week of December, the Ministry of Finance approved a Royal Decree, published in the Official State Gazette of Spain (BOE), regularizing the situation for these workers, allowing them to benefit from the Beckham Law retroactively. According to the document, taxpayers acquiring tax residency in Spain during the 2023 tax period, due to a relocation in 2022 or 2023, will have a six-month window to opt for this regime once the Order with the corresponding model is approved, still pending publication.

The so-called Startup Law (Law 28/2022), aimed at attracting talent to our country and making the arrival in Spain more fiscally appealing, broadens access to the Beckham Law. It includes those who move to the country to start a business, highly qualified professionals serving startups, as well as individuals engaged in training, research, development, or innovation activities. The door is also opened to company administrators and so-called digital nomads.

In summary, the recent Ministry of Finance update reflects a clear commitment to attracting talent to our country and boosting emerging and innovative businesses. The relaxation of the Beckham Law, combined with modifications introduced by the Startup Law and adjustments to fiscal thresholds, demonstrates a progressive approach to creating a more attractive environment for qualified entrepreneurs. These measures reaffirm Spain's commitment to strengthening its position as a favorable destination for talent and innovation.

Alejandro Puyo
Tax Area