Published: 14-10-2026
The special tax regime for workers, professionals, entrepreneurs and investors relocated to Spain, better known as the Beckham Regime, allows individuals who move to Spain to be taxed as non-residents in the year they become tax resident and the following five tax years. There is, however, an important point to bear in mind: income from economic activities obtained through a permanent establishment in Spain is not covered, except for the activities referred to in Article 93.1.b) 3rd and 4th. Binding ruling V1207-25, of 3 July 2025, applies this rule to a very common scenario: an inbound worker who, after losing their job, becomes a shareholder and director of their own professional services company. The Spanish Directorate General of Taxes (DGT) confirms that the regime can be maintained, but warns that services the shareholder provides to the company beyond their role as director may lead to exclusion from the regime.
What Article 93 of the Personal Income Tax Law (LIRPF) currently requires
Since 1 January 2023, taxpayers may opt for the regime if they meet three requirements:
- They have not been resident in Spain in the five tax periods prior to their relocation.
- They relocate for one of the following reasons:
- Becoming a director of an entity. If the entity is an asset-holding company, their shareholding must be below 25%.
- Becoming a director of an entity. If the entity is an asset-holding company, their shareholding must be below 25%.
- An economic activity qualifying as entrepreneurial (Article 70 of Law 14/2013).
- Being a highly qualified professional who provides services to start-ups, or who carries out research, development and innovation activities, provided that the remuneration for these activities represents, in aggregate, more than 40% of their total business, professional and employment income.
- They do not obtain income that would be classified as obtained through a permanent establishment in Spain, except in the last two cases (entrepreneurs and highly qualified professionals).
Employment income is taxed at 24% up to €600,000 and at 47% on the excess. The option must be exercised by filing Form 149 within six months from the start date of the activity, as shown in the registration with the Spanish Social Security system, in the documentation allowing the taxpayer to remain under their home country’s Social Security legislation, where applicable, or, if Social Security registration is not mandatory, in the document evidencing the start date of the activity.
What counts as income from economic activities?
Ruling V1207-25 starts from the definition in Article 27.1 LIRPF, under which gross income from economic activities is income that, “deriving from personal work and capital jointly, or from only one of these factors, involves the taxpayer organising, on their own account, means of production and human resources, or one of the two, for the purpose of participating in the production or distribution of goods or services ”. The provision expressly includes the practice of liberal, artistic and sporting professions.
In addition, since 2015 the third paragraph of the same article has laid down a specific rule for shareholders: income they obtain from an entity in which they hold shares for activities listed in Section Two of the Tax on Economic Activities (IAE) Tariffs is classified as income from economic activities if they are registered with the Special Social Security Scheme for Self-Employed Workers (RETA) or an alternative mutual insurance scheme.
Ruling V1207-25: from employee to director.
The taxpayer, who was under the regime, ended his employment relationship in June 2024. In November 2024 he became a remunerated director of a Spanish company in which he is a shareholder, initially holding 95% of the share capital and subsequently a smaller percentage. The DGT infers that the company provides professional IT consulting services.
- How is the remuneration he receives from the company taxed for Personal Income Tax purposes? The DGT explains that failure to meet any of the requirements results in exclusion from the regime from the tax period in which it occurs (Article 118 of the Personal Income Tax Regulations). Nevertheless, the DGT reiterates its position in ruling V0432-17: a brief period of unemployment followed by a new employment relationship or appointment as director does not lead to exclusion, provided that the new relationship also meets the requirements of Article 93 LIRPF.
- Can he continue to apply the special regime? If the company is an asset-holding company (Article 5.2 of the Corporate Income Tax Law, LIS), the director may not hold a stake that makes it a related entity (Article 18 LIS) and, above all, if the taxpayer obtains income from economic activities through a permanent establishment in Spain, he breaches Article 93.1.c) LIRPF and is excluded from the regime.
Section Two IAE activities: where the regime breaks down
Section Two of the IAE Tariffs covers professional activities, including, among others:
- Healthcare: Doctors, dentists, veterinarians, psychologists and physiotherapists, among others.
- Science, technology and energy: PhD holders and graduates in chemistry, physics and other sciences, engineers, technical experts, telecommunications technicians and other energy-sector professionals.
- Construction: Architects, quantity surveyors and technical engineers.
- Legal, financial and insurance: Lawyers, court representatives, notaries, economists, administrative agents, property managers, labour relations advisers, insurance actuaries, and insurance agents and brokers.
- Commerce and business services: Commercial agents, advertising professionals, consultants, IT programmers and analysts, translators and interpreters.
- Culture and arts: Painters, sculptors, writers and journalists.
- Other professionals: Each block includes a residual group covering professional activities not expressly classified.
Therefore, if the shareholder-director provides any of these services to their company, the Tax Administration may consider that they obtain income through a permanent establishment in Spain and exclude them from the regime. Only the activities permitted by Article 93 itself, namely entrepreneurial activity and that of highly qualified professionals, would remain covered.
Following its ruling V2837-16, in V1207-25 the DGT distinguishes between two types of remuneration received by the shareholder-director.
On the one hand, remuneration for duties inherent to the position of director, which is classified as employment income (Article 17.2.e) LIRPF) and does not affect the regime. On the other, remuneration for other services provided to the company, which is classified as income from economic activities, and is therefore incompatible with the regime, if the following three requirements are met simultaneously (Article 27.1 LIRPF):
- The company provides Section Two professional services: It does not need to be a professional company under Law 2/2007, and it is irrelevant whether it is registered under Section One.
- The shareholder provides those same professional services to the company: This includes commercial and organisational tasks, team management and internal services within that activity. It is irrelevant whether or not the shareholder is registered under a Section Two heading.
- The shareholder is registered with the RETA or an alternative mutual insurance scheme.
Practical recommendations.
- Review the reason for relocation whenever your employment situation changes: Ruling V1207-25 allows the taxpayer to fall under a new qualifying reason, but compliance must be verified at that time.
- Define the director’s duties in writing: the articles of association, remuneration resolutions and, where applicable, the senior management contract should reflect that the remuneration relates to the position of director.
The Beckham Regime can offer significant tax advantages but applying it requires careful planning. A change of employment, an appointment as director or the start of a professional activity may affect both access to the regime and its continued application.
For this reason, if you are considering relocating to Spain or already benefit from the Beckham Regime, we recommend reviewing your situation before making any changes that may have tax consequences. At Gentile Law, we have extensive experience advising individuals relocating to Spain and planning their tax obligations.
Contact
Ana García Ginés
Senior Associate Tax at Gentile Law
+34 604 51 21 60
María del Pilar Roldán Martín
Paralegal at Gentile Law