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Tax Regime for Non-Habitual Residents – Spain and Portugal

12月 2, 2020 | 0 条评论

Tax Regime for Non-Habitual Residents – Spain and Portugal




Thanks to the internationalization of companies and the ease with which workers in the European Union have to move within it, and in order to seek an attractiveness to bring qualified human capital, Spain applied a series of incentives in order to attract them which were embodied in Royal Decree 687/2005 also known as “Beckham Law” as this was the first footballer to benefit from it.
The aforementioned Royal Decree states that all persons who acquire their tax residence in Spain as a result of their travel to Spanish territory, may choose to pay the Income Tax of non-Residents during the tax period in which the change of residence is made and during the following five tax periods, provided that the following circumstances occur:

A) Who have not been resident in Spain during the ten tax periods prior to the one in which their movement to Spanish territory occurs.
B) That the movement occurs as a result of an employment contract, provided that it is not a professional athlete, or as a result of the acquisition of the status of administrator of an entity provided that they are not related entities.
C) Do not obtain income that would be classified as obtained by an EP located in Spanish territory.

As a peculiarity in this regime is that it is only taxed on income earned on Spanish territory, with the applicable tax rate being 24% on the first 600,000 euros and 45% on income exceeding that limit.
In order to qualify for this option, the taxpayer must submit model 149 within six months of registering under the Social Security scheme.
The declaration to be submitted annually shall be model 151, the filing period of which shall be the months of May and June of the following year.
In all this we can say that this regime is extremely attractive to all those who have high incomes since their tax burden will be considerably reduced.




The Portuguese government has been investing in tax measures aimed at increasing the country’s competitiveness and attracting more foreign investment to Portugal. The regime of Non-habitual Residents’ creation is one of these measures.

Regime target:

  • Qualified professionals,
  • ndividuals with assets,
  • Pensioners.


The Regime has the approval of the following entities:

  • European Commission;
  • International Monetary Fund;
  • European Central Bank:



Not having been a Tax Resident for the previous 5 years

  • You must prove that you have not been resident in the national territory in any of the last 5 years.


Becoming a Resident in Portugal for tax purposes

  • Stay in Portuguese territory 183 days in a row, or interpolated over a period of 12 months,
  • Have permanent residence in order to demonstrate intention to establish your residence in Portugal.


To read the full article, please, download the document




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