The Beckham Law, officially known as the Special Tax Regime for Impatriates, offers significant tax benefits for foreign professionals moving to Spain.
However, many applications fail due to common mistakes.
Especially for those that handle their application on their own.
Here are the three main reasons why your Beckham Law application might be rejected:
Reason 1: You don't get the timing right
First of all, to qualify for the Beckham Law special tax regime you must be a tax resident in Spain but not have been a tax resident in Spain for the five tax periods prior to your move.
To be considered a Spanish tax resident, you must spend more than 183 days in Spain during the same calendar year. The year you become a tax resident in Spain is the first year you can apply for the regime. For example:
- If you move on March 1, 2024, you will be a tax resident in Spain in 2024 if you stay more than 183 days in Spain, so the first year you can apply the regime is 2024. Be careful: If you become a Spanish tax resident in 2024 but don't apply in time, then you won't be able to apply for the Beckham Law regime in 2025, because you were already a tax resident in 2024.
- If you move to Spain on September 1, 2024, your first year of tax residency will be 2025, because you won't be in Spain in 2024 for more than 183 days. Therefore, 2025 is the first year you can apply the regime.
What about mid-year moves? That is a tricky question. But to make it simple for you:
- If you move on or after July 1, you cannot apply for the Beckham Law special tax regime for that current year.
- If you move before June 30, then you can apply for the Bekcham Law special tax regime for that current year.
And then there's the application deadline. You have 6 months from your registration with Spanish Social Security (or the date on the document justifying that you can continue contributing to your home country's Social Security) to apply.
If you miss the deadline, say goodbye to your chances of getting your Beckham Law application approved.
2. You don't submit the required documents correctly
The documentation required for your application depends on your specific case and must follow very specific requirements:
- Errors in documentation can significantly delay your application or even result in its denial.
- Each document must be prepared and submitted according to strict guidelines.
- Missing or incorrectly filled out forms can lead to automatic rejection.
3. You fail to justify that you moved to Spain for work reasons
To qualify for the Beckham Law regime, your move to Spain must be due to a job offer as an employee or as a company administrator. Here's what you need to know:
- Your entry into Spanish territory should be closely timed with the signing of your work contract. This helps prove that your entry into Spain is due to a job offer and not personal choice. It's advisable to have a job offer letter dated before your entry into Spain.
- There must be a clear causal relationship between your move and the start of your work. For example, if you come to Spain in March but don't start working until September, the causal relationship between your move and the start of work is no longer evident. The Spanish tax authorities (DGT) state that there should be a brief period between your arrival and the start of work.
Conclusion
Understanding these common pitfalls can significantly increase your chances of a successful Beckham Law application. However, dealing with the complexities of this special tax regime can be challenging. That's why it's crucial to seek expert assistance to ensure your application is prepared correctly and submitted on time.
At Beckham Law sorted, we specialize in Beckham Law applications.
We can guide you through the entire process, ensuring that you avoid these common mistakes and maximize your chances of approval.
Contact us today to learn how we can help you successfully apply for the Beckham Law special tax regime.
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