Among other measures, the Start-ups Law introduces certain relevant amendments to the inbound expatriates regime provided for in the Spanish Personal Income Tax (PIT) Law, with a view to attracting foreign talent to Spain.
The list of taxpayers eligible for the special regime is now extended. Formerly, only those starting an employment relationship with a Spanish employer, those joining an international assignment ordered by their employer, or those
appointed as directors at a Spanish company, who met certain requirements, could qualify for the special tax regime.
As of 1 January 2023, the regime is also extended to workers moving to Spain to work remotely using solely IT and telecommunications, and to individuals moving to Spain to engage in an economic activity classed as entrepreneurial and to those displaced to Spain who are highly-qualified professionals that render services to start-ups or engage in training, research, development or innovation activities.
Furthermore, the opportunity to opt for this special regime is now extended to the worker’s spouse or (if unmarried) the other parent of their children and to the children themselves.
Finally, the period of non-residence in Spain required to qualify for the regime is shortened from the prior ten to just the five tax years preceding the year in which the taxpayer is posted to Spain.