Spain: Amendments to special inbound expatriate regime

Royal Decree 1008/2023—published in the Official State Gazette on 6 December 2023—implements the amendments to the special inbound expatriate regime introduced by Law 28/2022 of 1 December 2022 to promote the start-up ecosystem (known as the “Start-ups Law”).

The inbound expatriate regime allows individuals who relocate to Spain and meet certain requirements to pay income taxes as nonresidents while formally being regarded as a tax residents during the tax year in which they acquire their tax-residence and the five tax years immediately thereafter.

The amendments include:

• The inbound expatriate regime may be applied when the person in question has not been resident in Spain during the five tax years preceding the year in which they relocate to Spain (formerly, this period was 10 years).
• Subject to certain requirements, the scope of application of the special regime now covers teleworking-related scenarios, directors (irrespective of their stake in the entity’s share capital), innovative entrepreneurs and highly qualified professionals who are to render services to start-ups or engaging in certain training, research, development and innovation activities (R+D+I).
• It is also now available to certain close family members accompanying the main taxpayer on their move to Spain under the regime.

In addition, Order 1338/2023—published in the Official State Gazette on 15 December 2023—provided the notifications and tax return forms for the regime as in effect since 1 January 2023.

Read a January 2024 report [PDF 545 KB] prepared by the KPMG member firm in Spain