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Beckham Law Update: Must Impatriates in Spain Now Pay Tax on Their Main Home?


Spain’s special tax regime known as the Beckham Law—designed to attract global talent by offering a flat tax rate and suspending worldwide income taxation—has encountered a major shift. The Tribunal Económico-Administrativo Central (TEAC) has ruled that individuals under this regime are required to pay Non-Resident Income Tax (IRNR) on their main residence in Spain, even if they live in it and no income is generated from it. This contradicts a previous Madrid High Court (TSJM) ruling and could significantly affect impatriates’ tax planning.

 

What You Need to Know

Topic

Details

Previous TSJM Ruling (2024)

Exempted main residences from taxation under the IRNR for Beckham Law beneficiaries, aligned with standard IRPF logic. 

TEAC’s New Position

Insists the IRNR law is explicit: owning an urban property in Spain—regardless of its use—triggers taxation at 1.1% or 2% of the cadastral value. 

Why It Matters

Strips a previously assumed exemption, creating tax liability even for owner-occupied homes under the Beckham regime.

 

About the Beckham Law

Also known as the Special Impatriate Regime, Spain’s Beckham Law allows eligible foreign professionals to:

  • Be taxed as non-residents, enjoying a flat tax rate of 24% (rising to 47% above €600,000). 
  • Pay only on Spanish-source income, excluding foreign earnings.
  • Avoid declaring worldwide assets and income under the IRPF system.

You typically qualify if:

  • You weren’t a tax resident in Spain in the prior 5 years,
  • You’ve moved to Spain for specific employment or remote work,
  • You apply for the regime within six months of registering. 

However, the TEAC decision shows that housing taxation doesn’t follow IRPF norms and the main home exemption no longer applies for Beckham beneficiaries under the IRNR framework. 

 

What Impatriates Should Do

  1. Reassess Tax Exposure
    Prepare for an additional IRNR on your primary residence—even if it’s your living property.
  2. File Correctly
    Ensure this imputed income is included in your annual Modelo 151 tax return under Beckham law.
  3. Monitor for Appeals
    Legal challenges to the TEAC ruling may develop—stay updated with expert guidance.
  4. Get Professional Help
    Taxadora can review your situation and help seamlessly integrate home taxation into your Beckham Law filing.

 

Why This Is a Big Deal

This ruling adds a layer of complexity to a regime already valued by international professionals. The TEAC’s interpretation potentially increases the cost of relocation and long-term residence in Spain.

But with strategic planning, compliance is manageable. Having a trusted advisor familiar with the nuances of expat taxation, including the Beckham Law and IRNR rules, ensures you’re not caught off guard.

 

Need updated guidance on how this decision affects your tax position? Visit our blog or contact Taxadora—we help impatriates navigate these changes confidently.

 

 

vilho

Article written by Vilho Heiskanen

Expert in international taxation for private individuals. He combines deep advisory experience with a passion for building technology that simplifies the complexities of Spanish tax compliance. As the founder of Taxadora, he’s on a mission to modernize cross-border taxation with smart, accessible solutions.

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