Spain’s Government presents draft bill for tax reform


30 Jun. 2014

The Government presented the draft bill last Friday June 20 on amendments to the Personal Income Tax Act Law 35/2006 and to Non Residents Income Tax Act Royal Decree Law 5/2004.

The draft bill modifies article 93 of Law 35/2006 about the special regimen applicable to foreign workers taxed as non-resident despite of remaining in the country over 183 days in a tax year, known as the “Beckham Law”, excluding professional athletes (soccer players included) from this advantageous tax regimen.

The draft bill also reduces the non-resident income tax rate for EU citizens applying a scale that goes from 19% on first 6.000 euro to 23% above 50.000 euro.

The Government has ignored the proposals made by the Committee of Experts as to extend the scope of the special tax regimen to others than foreign workers such as pensioners, directors, professionals, etc., coming close to the UK “non-domiciled” status.

The Government expects to approve the Law by mid-July and it will come into force as of January 2015. Our proposals have been reiterated directly to Government members through DOM3.

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