Can expatriates enjoy a special tax regime in Spain?

Foreign workers or expatriates coming to Spain have access to a very favourable tax regime (Special Tax Regime for Impatriates or 'régimen fiscal de impatriados') according to Carlos Montesa, partner at Abbantia Abogados in Spain (Seville and nationwide) and a member of the alliance's Global Mobility Services Group:

"Spain offers expatriates a good opportunity, however some fail to realise that they must register for it within six months of their arrival."

Under what is described as a straightforward tax regime for international assignees, expatriates' income is taxed at 24% up to Euros 600,000, after which it is taxed at 45%, though Montesa adds that this is unlikely to affect too many expatriates coming to Spain. 

Residency rule

Montesa also points out another key criteria for qualifying for the expatriates tax regime: "You cannot have been resident in Spain in the last 10 years." 

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Qualifying period

And finally, Montesa emphasises that when the option is taken up, it will apply for the next five years (including the period in which the application is made). 

Need advice on the tax position of employees assigned to Spain?

Carlos Montesa of Abbantia Abogados offers friendly advice in Spain to any companies assigning staff or individual expatriates who are unsure how to best capitalise on the available opportunities.