Beckham Law: Model 151

Form 151 in taxation in Spain is a form used to submit the Personal Income Tax (IRPF) declaration by taxpayers who benefit from the Special Regime for Displaced Workers, commonly known as the Beckham Law.

Personal income tax is a direct tax that taxes the income obtained by individuals in Spain. Taxpayers who benefit from the Beckham Law can pay taxes as non-residents at the general rate of 24% instead of 43% for the first 600,000 euros of income from work, and at 45% for the excess of that amount. Reduced rates also apply for dividends, interest and capital gains.

Form 151 is specific for those displaced 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 submitted annually within the deadlines established by the tax authorities to comply with the corresponding tax obligations.

It is important to note that, although Form 151 is specific for Beckham Law beneficiaries, each taxpayer must ensure that they file the appropriate personal income tax return in accordance with their particular tax situation and current regulations. It is always advisable to seek professional advice to ensure proper compliance with tax obligations and take advantage of tax benefits in a legal and transparent manner.

Income that is not applicable

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 on the tax return; It is not subject to declaration. This income has its own taxes. Therefore, if you received a donation, you must pay the gift tax (within 30 days of the donation). 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 were applied for displaced persons. The taxpayer in question is always assessed independently and personal circumstances are not taken into account.

Presentation of Model 151

Dislocated workers must file a 2019 tax return by June 30, 2020. If they want the tax office to debit their bank account directly, they must file a tax return by June 25, 2020.

You can fill out and file the tax return yourself or you can fill out and file it with a tax advisor. As an exempt employee, you can complete and submit the tax return yourself through the Spanish tax office website. In this case, there is no so-called “draft”, but you must declare your income and withholding taxes, as well as deductions for donations or taxes already paid abroad.

Of course, you can also ask the tax advisor to prepare and file your tax return. This saves time and hassle, and is especially recommended for those who do not speak Spanish well or have multiple incomes from different sources.

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