Moving to Spain for work: the special regime and what to file in year one

People who move to Spain for a job can choose to be taxed under a special regime for inbound workers. Instead of the progressive scale, employment income up to €600,000 is taxed at a flat 24 % for the year of arrival and the five years that follow.

Who can apply

You must not have been resident in Spain in the five years before the move, and the move has to be linked to a job, a directorship or certain qualifying activities. The application is made on Modelo 149 within six months of registering with Spanish social security. Miss that window and the regime is lost.

The split year

In the UK, the statutory residence test and split-year treatment decide from which day you stop being taxed as a resident. Getting the date right in both countries avoids paying twice on the same months.

What to file in the first year

A UK return for the part of the year before the move, and the Spanish return under the special regime for the rest. If you keep assets abroad worth more than €50,000 in any category, Modelo 720 may also apply.

The best time to plan is before you sign the Spanish contract. We are happy to look at the dates with you.