Key Update for Taxpayers Under the Beckham Law (Special Regime for Impatriates)

A new resolution from the Spanish Central Economic-Administrative Court (TEAC) dated 17 July 2025 has clarified an important — and perhaps surprising — interpretation:
Taxpayers under the Beckham Law must impute income from personally owned properties, including their habitual residence, as if those properties were generating rental income.

This ruling could significantly affect those who’ve relocated to Spain under this special tax regime and own property used as their main residence.

Case Summary: What Happened?

• A taxpayer who had opted into the Beckham Law (Article 93 of the Spanish Personal Income Tax Law - LIRPF) declared her property in Madrid as her vivienda habitual (main residence) and did not report any imputed rental income (renta imputada).
• The tax office reviewed her return and adjusted her IRPF, claiming she owed tax on notional rental income under the Non-Resident Income Tax rules (IRNR) — which do not offer the exemption for primary residences.
• Initially, the Madrid Regional Court (TEAR) sided with the taxpayer, citing a 2024 judgment (TSJ Madrid, May 6, 2024) that allowed the habitual residence exemption to apply even under the impatriate regime.

TEAC Overrules the Regional Court:

In its final decision, the TEAC sided with the Spanish Tax Agency (AEAT) and made a clear ruling:

• The IRNR rules apply to impatriates under the Beckham Law — not the general IRPF rules.
• Under Article 13.1.h of the IRNR Law, no exemption exists for the habitual residence.
• Even though Article 24.5 IRNR refers to Article 85 of the IRPF (used for valuation), this only affects the amount, not whether the imputed income is taxed in the first place.
• Because the Beckham Law is an elective regime, taxpayers must accept both the benefits and the limitations — and cannot selectively apply general tax benefits.

Why This Matters

This ruling creates a significant shift in interpretation and may come as a surprise to many impatriates who assumed their main residence was exempt from imputed income under the Beckham regime.

If you are under the Beckham Law and own property in Spain, even if you live in it full-time, you are required to impute and declare rental income for it.



This could result in unexpected tax liabilities for many expats who were not previously advised on this issue or whose tax advisors applied general IRPF exemptions incorrectly.

Practical Takeaways:

• Reassess your Spanish tax returns if you’re under the Beckham regime and own property.
• Review how renta imputada has been handled in prior years to assess potential exposure.
• Going forward, include the imputed income in your tax planning and adjust tax withholdings or provisions accordingly.
• Be cautious when relying on court decisions that haven’t been confirmed by national-level authorities like the TEAC or the Supreme Court.

Need Guidance on the Beckham Law?

We advise international professionals, remote workers, and executives on the full implications of the Beckham regime — including:

• Eligibility, filing, and application process
• Annual tax return preparation under Modelo 151
• Asset structuring & wealth tax implications
• Real estate tax planning, including imputed income
• Representation before Spanish tax authorities

Contact or write to us at info@samirlaw.com