Question 1

What is the Beckham Law and who qualifies?

Accepted Answer

The Beckham Law (Royal Decree 687/2005) allows individuals who become Spanish tax residents to opt for a flat 24% income tax rate on Spanish-sourced income for up to six years. To qualify, you must not have been a Spanish tax resident in the previous five years, and you must move to Spain due to an employment contract or as a company director. Self-employed individuals may also qualify under the 2023 reform if they provide services to Spanish companies.

Question 2

How does the Golden Visa work for property investment?

Accepted Answer

The Golden Visa programme grants Spanish residency to non-EU nationals who invest at least €500,000 in Spanish real estate. The visa covers your spouse, children, and dependent parents. It allows free travel throughout the Schengen area and does not require you to live in Spain permanently. The visa is renewable every two years, and after five years of legal residency, you may apply for permanent residency.

Question 3

What taxes will I pay as a Spanish resident?

Accepted Answer

Spanish tax residents pay progressive income tax (IRPF) ranging from 19% to 47%, depending on income. Additional taxes include wealth tax (0.2%–3.5% on net assets above €700,000), capital gains tax (19%–28%), and local property tax (IBI). The Balearic Islands have their own regional tax rates, which can differ from national rates. Non-residents pay a flat 24% on Spanish-sourced income.

Question 4

How do I obtain an NIE number?

Accepted Answer

The NIE (Número de Identidad de Extranjero) is a tax identification number required for all financial transactions in Spain. You can apply at a Spanish consulate in your home country or at the National Police station in Spain. Processing typically takes 2–4 weeks. You will need your passport, a completed EX-15 form, and proof of the reason for your application (e.g., property purchase contract).

Question 5

What is the 183-day rule for tax residency?

Accepted Answer

Spain considers you a tax resident if you spend more than 183 days per calendar year in the country. Days do not need to be consecutive. Additionally, you may be deemed resident if your centre of economic interests or your spouse and minor children reside in Spain. Dual residency situations are resolved through double taxation treaties between Spain and your home country.

Question 6

What are the costs of buying property in Mallorca?

Accepted Answer

Total acquisition costs typically add 10–13% to the purchase price. For resale properties, you pay Transfer Tax (ITP) of 8–13% depending on the price bracket. New-build properties attract 10% VAT (IVA) plus 1.5% stamp duty (AJD). Additional costs include notary fees (€600–€1,500), land registry fees (€400–€1,000), and legal fees (typically 1% of the purchase price). Mortgage arrangement fees apply if financing.

Question 7

Can I structure my business for tax efficiency in Spain?

Accepted Answer

Yes. Common structures include a Spanish SL (Sociedad Limitada) for trading activities, holding companies for investment portfolios, and family offices for wealth management. Spain offers the Patent Box regime (60% exemption on qualifying IP income), the Entrepreneur's Law incentives, and various R&D tax credits. The optimal structure depends on your business activities, income sources, and long-term objectives.

Question 8

What about inheritance and succession planning?

Accepted Answer

Spanish succession tax applies to worldwide assets for residents and Spanish assets for non-residents. Rates vary by region—the Balearic Islands offer significant reductions for direct family members (up to 99% reduction for spouses and children). Proper planning through wills, trusts, and corporate structures can significantly reduce the tax burden. We recommend establishing a Spanish will alongside your home-country will.

Tax Regime	Tax Rate	Duration	Ideal For
Beckham Law	24%	6 years	Executives, athletes, professionals
Digital Nomad	15–24%	5 years	Remote workers, freelancers
Standard Resident	19–47%	Indefinite	Long-term residents
Non-Resident	24%	N/A	Part-time residents (<183 days)

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Frequently Asked Questions

What is the Beckham Law and who qualifies?

How does the Golden Visa work for property investment?

What taxes will I pay as a Spanish resident?

How do I obtain an NIE number?

What is the 183-day rule for tax residency?

What are the costs of buying property in Mallorca?

Can I structure my business for tax efficiency in Spain?

What about inheritance and succession planning?

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