Beckham Law: Model 151
Form 151 in Spanish taxation is a form used to file the Personal Income Tax (IRPF) return by taxpayers who benefit from the Special Regime for Posted Workers, commonly known as the Beckham Law.
Personal income tax (IRPF) is a direct tax on income earned by individuals in Spain. Taxpayers under the Beckham Law can be taxed as non-residents at the general rate of 24% instead of 43% for the first 600,000 euros of earned income and at 45% for the excess of that amount. Reduced rates also apply to dividends, interest and capital gains.
Form 151 is specifically for those posted workers who meet the requirements of the Beckham Law and must declare their income and tax benefits obtained during the period of application of the regime. This form must be filed annually within the deadlines set by the tax authorities in order to comply with the corresponding tax obligations.
It is important to note that, although Form 151 is specific to Beckham Law beneficiaries, each taxpayer must ensure that they file the appropriate personal income tax return in accordance with their particular tax situation and the regulations in force. It is always advisable to seek professional advice to ensure proper compliance with tax obligations and to take advantage of tax benefits in a legal and transparent manner.
Non-applicable rents
It is important to note that some deductions and exemptions on income are not applicable in this special tax regime.
The proceeds of gifts and inheritance are not recorded in the tax return; they are not subject to declaration. This income is taxed on its own. Therefore, if you received a gift, you must pay gift tax (within 30 days of the gift). If you have inherited something, you must pay inheritance tax (within 6 months from the day you died).
In Spain, it is normally possible to file a joint income tax return for the members of the so-called “family unit”. However, this possibility did not exist when special rules for displaced persons were applied. The taxpayer in question is always assessed independently and personal circumstances are not taken into account.
Presentation of Form 151
Posted workers must file a 2022 tax return by 30 June 2023. If you want the tax office to debit your bank account directly, you must file a tax return by 25 June 2023.
You can complete and submit the tax return yourself or you can complete and submit it with a tax advisor. As an exempt employee, you can complete and submit the tax return yourself via the website of the Spanish tax office. In this case, there is no so-called “draft”, but you must declare your income and withholding tax, as well as deductions for donations or taxes already paid abroad.
Of course, you can also ask your tax advisor to prepare and file your tax return. This saves time and hassle and is especially advisable for those who do not speak Spanish well or have several incomes from different sources.
Do you have any questions about this law or any other topic? Please do not hesitate to contact our tax advisors in Barcelona regarding this topic.
