DLVA LEGAL NEWS | INTERNATIONAL TAXATION
LANDMARK RULING FROM THE HIGH COURT OF MADRID | BECKHAM LAW BENEFICIARIES EXEMPT FROM TAX ON THEIR PRIMARY RESIDENCE
A recent ruling by the High Court of Justice of Madrid (TSJM) has confirmed that taxpayers subject to Spain’s special tax regime for inbound workers, known as the Beckham Law, are not required to pay Non-Resident Income Tax (IRNR) on deemed rental income arising from the ownership of their primary residence in Spain.
This judgment represents a major legal and tax milestone that could result in substantial tax savings for thousands of foreign professionals residing in the country.
Taxpayers under the Beckham Law are exempt from taxation on their main home in Spain.
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WHAT CHANGES WITH THIS RULING
Until now, the Spanish Tax Agency required taxpayers to declare a notional income (ranging from 1.1% to 2% of the property’s cadastral value) as rental income, even when the property was their habitual residence.
However, the High Court of Madrid has ruled that this practice violates the current legal framework, and that the provisions of the Personal Income Tax (IRPF) system should apply—which exempts taxation on the taxpayer’s primary residence.
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WHO BENEFITS FROM THIS RULING
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All foreign workers who have opted into the Beckham Law since its enactment.
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Taxpayers who have incorrectly paid IRNR on their primary residence.
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Those seeking to claim refunds for overpaid taxes from the last four fiscal years, including interest on late payments.
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NATIONWIDE IMPACT
Although the ruling was issued in Madrid, its interpretation could extend nationwide, given the nature of the tax regime and the judicial criteria applied. This reinforces the need to review past tax filings.
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PERSONALIZED TAX REVIEW | DLVA
At DLVA | De la Vega & Associates Law Firm, specialists in international tax law and expatriate taxation, we advise Beckham Law beneficiaries to:
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Review their tax returns from previous years.
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Assess the possibility of claiming tax refunds.
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Request legal advice from our team to maximize the recovery of unduly paid amounts.
Legal analysis by: Javier De La Vega . Founding Partner of DLVA
Our team is ready to assess your case and help you exercise your tax rights securely and efficiently.
DLV&A | PERSONAL TAX ADVISORS
Available at our Madrid office.Website. Email: info@ej-delavega.com .Phone: +34 914 355 051 Instagram:@ej_dlva