Taxation - Relocation in Madrid by Relomar

Tax advice for companies

Our tax advisors will inform you about the current legislation and the best way to relocate your employees to Madrid. The tax advice service for expatriates is very useful for international companies opening their headquarters in Madrid or wishing to transfer their employees to Spanish territory.

Tax advice for companies and expatriate workers by advisors and lawyers who are experts in taxation and international law
Support in the tax planning of companies, including the study of international and Spanish legislation.
Management of international mobility to facilitate the movement of expatriate workers to Madrid.
Creation of expatriation programs with the necessary steps to carry out the international mobility of the company and its expatriate workers to Madrid, complying with tax and legal obligations.

We advise you and your employee on all tax requirements in their new destination. Our goal is to ensure compliance with local regulations and optimize their individual tax contributions.

Tax advice for expatriate workers

If you are preparing to reside in Madrid temporarily or even permanently, due to the activity of your company, you can benefit from our tax advice sessions for expatriate workers:

Tax advice for expatriates on change of domicile and tax residence, income and wealth declarations, according to their residency status in Madrid (resident or non-resident).
Tax advice for the purchase and sale and rental of real estate.
Study of the taxation of the employee’s remuneration.
Advice on procedures and formalities related to the expatriate’s Social Security in Madrid.
Obtaining and applying for work and residence visas for the expatriate worker and for all the members of his/her family.
Obtaining of NIF for non-residents.
International mobility planning and the possibility of providing support with the relocation of the expatriate and his/her belongings.

Relocation of Business owners to Madrid.

If a business is already operating in another country and a partner, director, or employee of that business relocates to Madrid, it’s important to consider that this move will generally also shift the business’s tax residency to Madrid.

The reason for this is that the tax residence of a company is determined by, among other criteria, the place from which the company is managed.

You must consider that the Spanish tax authorities can require that the profit generated by the business is taxed in Madrid. This would make the management of the business much more complex, as the income would then be taxed in two different countries – Madrid and the country where the business was incorporated (for its worldwide income).

International tax advice

Would you like to save on your taxes in Madrid? Consult with our experts in international tax advice and find legal solutions that suit your situation.

Advice

We advice on changes of tax residence, opening bank accounts and tax planning.

Preliminary Study

We study your case and propose the best options to optimize your tax burden and obtain the greatest benefit.

All kinds of customers

Non-residents, foreigners, individuals, entrepreneurs, investors, digital nomads, personalities on social networks and Internet platforms… etc.

Online advisory

Online and telematic international tax advisory service to live in all the Spanish territory and in the main cities of Madrid: Madrid, Barcelona and Valencia.

We answer your doubts

Consult your doubts with our team of experts and international tax advisors.

FAQ

How much does a work permit in Madrid cost?
How long do I have to live in Madrid to obtain residency?
How long does it take to obtain residency in Madrid?
How to make papers to work in Madrid?
How to obtain a residence and work permit in Madrid?
How to obtain a residence permit in Madrid?
How to stay in Madrid legally?

What papers do I need to apply for a residence permit?
What types of residence are there in Madrid?
Is it better to become self-employed or an SL?
Do I have to pay tax on my Spanish property?
How much is non-resident tax in Madrid?
Can I pay my non-resident tax online?

Am I eligible for the Impatriate regime law (Beckham Law)?

A special tax regime in Madrid allows you to continue being taxed as a non-resident. The advantage of this special regime is that, as a non-resident, you will likely end up paying less tax than a “regular” tax resident in Madrid.

To be eligible for the Beckham law you must: You must physically relocate to Madrid to qualify, as only by becoming a tax resident there can you apply for the special tax regime.

Your move to Madrid must be work-related. While “work” in Madrid can be interpreted in various ways, it is essential that some form of professional activity is conducted within the country.

Generally speaking the eligibility for application to the spanish Beckham Rule regime extends to:

Foreign workers who relocate to Madrid to engage in an economic activity, specifically those employed by a company
Expatriates who hold managerial positions or other significant roles are considered among the administrators or employees, as the law does not specify this as a separate category.
Individuals who move to Madrid with the intention of performing remote work for an employer.
Professionals with high qualifications who provide services to start-up companies or engage in training, research, development, and innovation activities, with at least 40% of their income generated from invoicing related to these services.
Company administrators who assume positions in Madrid, provided they do not hold more than 25% ownership in a company classified as asset-managing.
Family members of the remote workers, which includes the spouse and any dependents

Who cannot apply for Beckham’s law?

Freelancers or self-employed individuals, including those possessing a digital nomad visa.
Sports professionals, including athletes, irrespective of their income level or status within their respective fields.
It is incorrect to state that directors with ownership stakes exceeding 25% in Spanish companies are excluded. They remain eligible as long as their company is not classified as asset-managing, or if they apply through a startup or entrepreneur visa.

Main advantages of the special tax regime

Pay lower taxes

Personal Income Tax, under certain circumstances, it may result in significant lower taxes every year.

24% Flat tax rate

Opting for Spanish tax-compliant investment vehicles can improve tax efficiency. A valuable option is the Spanish Collective Investment Bond, a type of life insurance policy that provides multiple benefits for those relocating to Madrid.

Only Spanish sourced incomes are taxed

If you obtain incomes abroad, as a general rule, they won’t be taxed in Madrid.

No obligation to file the Modelo 720

A declaration of overseas assets, which simplifies tax compliance and preserves privacy.

Benefits extend to family

Creating potential tax savings for the entire family.

The Spanish Tax System – The Basics

In Spain, the main direct taxes for individuals include personal income tax gift and inheritance tax , wealth tax, and the tax on large fortunes. The last two are unique to Spain, though there are lawful strategies to reduce them significantly.

Tax residency is crucial: tax residents in Madrid are taxed on their worldwide income and assets, while non-residents are only taxed on income from Spanish sources or assets within Spain.

Madrid’s tax system varies widely across its 17 autonomous regions and 2 autonomous cities, each with significant legislative power over taxes. Where you choose to live within Madrid can greatly influence your tax burden.

Offshore Investments and Spanish Taxation

Expats should be mindful of the tax rates applied to income from offshore investments, such as dividends, interest, and capital gains, as savings income is subject to progressive tax rates.

€0 – €6,000: 19%
€6,001 – €50,000: 21%
€50,001 – €200,000: 23%
€200,001 – €300,000: 27%
€300,001 and above: 28%

Using Spanish tax-compliant investment vehicles can enhance tax efficiency. One effective option is the Spanish Collective Investment Bond, a type of life insurance policy that offers several benefits for those moving to Madrid.

Impatriate Tax Regime for Workers