24% Tax regime for individual who have obtained a Spanish Digital Nomad Visa or Golden Visa.

Starting from January 1, 2023, amendments to Article 93 of Spain’s Personal Income Tax Law introduce a special tax arrangement for individuals gaining Spanish tax residency due to moving to the country. This provision, which was modified through the third Final Provision of Law 28/2022, is intended to promote the startup ecosystem.

Under this regime, individuals who establish their tax residency in Spain through relocation have the option to pay non-resident income tax at a fixed rate of 24%. This arrangement applies for the tax year of relocation and the subsequent five tax years, provided specific conditions are met.

The eligibility criteria encompass several scenarios, including:

1.-Employment Contracts: Individuals who move due to an employment contract can avail this scheme. The inclusion of remote work through electronic means is highlighted, especially for individuals with the international teleworking visa.

2.-Directorship of Entities: Those acquiring the status of a director in an entity can also opt for this special regime, provided certain criteria are fulfilled.

3.-Entrepreneurial Activities: Engaging in entrepreneurial activities in Spain, as per the procedure outlined in the law, is also considered a qualifying factor.

4.-Highly Qualified Professionals: Individuals who perform economic activities benefiting startups or contribute to innovation activities, with a substantial portion of their income originating from these activities, are eligible.

Furthermore, individuals opting for this regime should not generate income categorized under a permanent establishment in Spanish territory, with certain exceptions. Family members, including spouses and children, can also benefit from this regime if they meet specific conditions.

Spouses and children of the primary taxpayer, as described earlier, also have the option to pay non-resident income tax while retaining their taxpayer status for personal income tax. This is subject to the following conditions:

  1. They must move to Spanish territory either simultaneously with the primary taxpayer or later, provided the first tax period under the special scheme for the primary taxpayer has not concluded.
  2. They need to acquire tax residency in Spain.
  3. They should meet the conditions outlined in points (a) and (c) of the previous section.
  4. The total taxable bases of these individuals across each tax period under the special system should be lower than the taxable base of the primary taxpayer mentioned earlier.

This special scheme is applicable for consecutive tax periods if the aforementioned conditions are satisfied, and it also applies to the primary taxpayer as previously discussed.

It’s important to note that those under this regime are not classified as residents for the purpose of applying double taxation agreements. They are only subject to taxation for income derived from Spanish sources.

The process of joining, leaving, or being excluded from this special regime involves the submission of Form 149, accompanied by relevant documentation as specified in the Income Tax Regulation. Taxpayers choosing this option should file a distinct personal income tax return using Form 151 tailored to the regime’s specifics.

In terms of withholding taxes and interim personal income tax (IRPF) payments, the rate is fixed at 24% for earned income. However, when a single payer’s payments for work exceed €600,000 in a year, the applicable withholding rate on the excess aligns with the current accrual year’s rate of 45%.

This amendment reduces the previous requirement of non-residence in Spain to five years and extends the opportunity to avail the special regime to new categories of individuals, including teleworkers, entrepreneurs, professionals, and their families. This updated framework introduces a distinction between the main taxpayer and associated family members within the regime’s application periods.

Flat Rate of 7% purchase a property in Andalusia

Are you thinking of buying a property in Andalusia?

Good news! The Andalusian Tax Government has approved a reduction in the Transfer Tax to be paid at a flat rate of 7%!


What is the Transfer Tax?

When you purchase a property in Spain, you are liable to pay a transfer tax for both first and second-hand properties calculated on the purchase price.

  • First-hand properties: 1.5% tax rate – It has been reduced to 1.20%
  • Second-hand properties: It usually implies a progressive tax rate from 8% to 10% depending on the purchase price. Now, a flat rate of 7% is applicable.


Which are the requirements to get this flat rate applied?

The only requirements are the following:

  • The property to be located in the Andalusian region


Does it have any further tax or legal implications?

The only implication is the significant saving on the transfer tax related to the purchase of your property in Andalusia!


What are you waiting for?

The Andalucia Lawyers team will be pleased to assist you with the conveyancing of your dream house.

Feel free to contact us!

What is Form 720 (Modelo 720) ?

What is Form 720 (Modelo 720)?

Form 720 is an informative declaration on offshore assets and rights located outside Spain.

According to current regulations, Form 720 submission is requested in order to comply with the following objectives:

-Inform the Spanish administration about the offshore real estate and existing rights over them.

-In relation to the previous, communicate about the status of the accounts in financial entities located outside the national territory at the taxpayer disposal.

-Finally, information on insurance, income, securities or rights obtained abroad is a substantial part of the declaration.


What should be included in Form 720?

The obligation to submit Form 720 must be ascribed to the following information, which in turn relates to article 4.2 of Law 10/2010 on prevention of money laundering. In this sense, due to the repeated omission or non-submission of offshore assets, the inspection control on obligation of submission of this form has increased throughout the European Union. It must be taken into consideration, as established by the Spanish Tax Office, that the minimum fine for breach of a single information obligation amounts to € 10,000.


Thus, the statement must contain information on accounts in financial entities located abroad of which the taxpayer are holders or beneficiaries. It is also mandatory in the event that the taxpayer appears as authorized. In addition, real estate and rights over them (outside of Spain) shall also be declared.


The obligation, as indicated by the Spanish Tax Office, is extended to those holders of participations or shares in the capital stock of collective investment institutions, of which they are holders and are located abroad. The taxpayer shall also report whether they are a beneficiary of life or temporary annuities, contracted to entities located abroad, as well as life or disability insurance policy holders.


Who is required to submit Form 720?

As we indicated before, the obligation to file Form 720 -and report on the accounts in financial entities located abroad- lies on those owners, representatives, authorized persons, beneficiaries, whether individuals or companies with rights of disposal or full ownership. To this extent, we must also add the obligation to report on values, rights, annuities and insurances obtained outside the national territory, as well as real estate or rights over real estate located abroad.


At this point we must add a fundamental element: the obligation is limited to an specific amount. There will be no such obligation in the event that the asset or the total of assets does not exceed € 50,000. If we focus, for example, on the accounts in financial institutions, the submission of the form will also be mandatory in the event that the total amount of the balances -or average balances- as of December 31st exceeds that figure.

If the submission of this form is made for the first time, the obligation for the following years is only imposed in the event that the average balance had been subject to an increase of more than € 20,000, taking as reference the last submitted form.


In the case of real estate, shares or annuities, a new submission of Form 720 is requested in the case that the taxpayer sells any of the previously declared assets or buys a new asset. In the case a previously declared bank account is closed, the taxpayer shall also inform.


How is Form 720 submitted?

The Form 720 is to be submitted electronically. In order to file this form, identification with a digital signature (electronic certificate or electronic ID) or with the Cl@ve PIN identification system (only individuals) is requested. In the event that the taxpayer does not have an electronic signature, the person in charge of submission must have the authorization to submit declarations on behalf of third parties. In this case, this authorised person must be registered as a tax office collaborator or as a legal representative. has a team of accountants and tax experts who can help you with this From


When is Form 720 to be submitted?

The deadline for submission of Form 720 is stipulated from 31st March of the year following the one to which the reporting exercise refers.