Spain Confirms Beckham Law Eligibility for Company Directors
- Business Expats
- Oct 30
- 3 min read
The Spanish Tax Authority (Dirección General de Tributos, DGT) has issued a new binding ruling — V1207-25 (July 3, 2025) — offering valuable clarity on one of Spain’s most attractive fiscal frameworks for international professionals: the special expatriate tax regime, commonly known as the “Beckham Law.”
This decision directly addresses whether an expatriate who initially relocated to Spain under an employment contract may continue to benefit from the regime after becoming the administrator (director) of a Spanish company.
Background of the Case
The case examined involved a taxpayer who moved to Spain in 2021 and successfully applied for the Beckham regime under Article 93 of the Personal Income Tax Law (LIRPF).
Following the end of his employment in 2024, he created a Spanish company, assuming the role of administrator and majority shareholder. Once new investors entered and staff were hired, the company began to operate as an active trading business rather than a passive holding entity.
This evolution raised an important question:
Can the Beckham regime continue to apply when the expatriate becomes the administrator of their own company?
1. Characterisation of the Administrator’s Income
The DGT reaffirmed that income derived from the role of administrator qualifies as employment income (rendimientos del trabajo) under Article 17.2(e) LIRPF, even when the administrator is also a shareholder.
However, if the administrator also performs professional activities aligned with the company’s business purpose — for example, consulting, marketing, or IT services — that remuneration may instead be treated as professional income (rendimientos de actividades profesionales), provided the individual is duly registered as self-employed (RETA).
This distinction, previously addressed in rulings such as V2837-16, affects not only the applicable tax rate but also potential transfer pricing obligations under Article 18 of the Spanish Corporate Income Tax Law.
2. Continuity Under the Beckham Law
At the core of ruling V1207-25 lies a crucial confirmation:An expatriate can maintain the Beckham regime when transitioning from employee to company administrator — if specific legal conditions are met.
According to Article 93 LIRPF, as updated by Spain’s Startups Law (Law 28/2022), the special regime also applies to administrators when:
The company is not a “patrimonial entity” (as defined in Article 5.2 of the Corporate Tax Law).
The administrator’s shareholding does not create a related-party relationship under Article 18 of the same law.
In practical terms, this means that the Beckham regime may remain applicable as long as the entity has real operations, economic substance, and independent management, rather than existing merely as a vehicle to hold assets.
It also remains essential that income not be attributable to a permanent establishment in Spain — preserving the original conditions for eligibility under the regime.
3. Strategic Implications for Founders and International Executives
This ruling marks a turning point for expatriates who evolve from employees into entrepreneurs or company directors.
For startup founders, international executives, and global professionals, the DGT’s interpretation introduces welcome flexibility in Spain’s fiscal framework — particularly in fast-growing industries such as technology, fintech, and Web3, where international talent often transitions from employment contracts to self-founded ventures.
Key takeaways:
✅ The Beckham regime may remain available after moving from employee to remunerated administrator.
✅ The company must be operational, with substance and staff.
✅ Ownership thresholds must be monitored to avoid related-party classification.
✅ Accurate classification of income (employment vs. professional) remains critical for tax and social security compliance.
4. A More Flexible Expatriate Tax Framework
With this ruling, Spain reinforces its commitment to modern, globally competitive tax policy for foreign talent and entrepreneurs.
By extending the Beckham regime’s applicability to administrators of active, non-patrimonial companies, the DGT aligns the Spanish tax system with the realities of today’s mobile, entrepreneurial workforce.
At the same time, the decision highlights the importance of strategic tax planning during transitions from employee to business owner — a phase where residency status, income source, and company structure must be aligned with Spanish and international regulations.
Business Expats Insight
At Business Expats, we help founders, executives, and global professionals structure their international presence under Spanish and EU tax law, ensuring that every decision — from relocation to remuneration — is compliant, strategic, and future-proof.
Our approach integrates regulatory precision with cross-border strategy, allowing clients to benefit from the Beckham regime, double tax treaties, and compliant corporate structures without compromising flexibility or global growth potential.
For anyone planning to relocate, restructure, or establish a company in Spain, the lesson from Ruling V1207-25 is clear:
Tax planning is not just about saving taxes — it’s about building credibility, compliance, and confidence in your global footprint.
Let’s discuss how the Beckham Law and other cross-border structures can help you establish or optimize your presence in Spain.