As we previously anticipated, other countries are quick to take notice of Portugal's well-advertised decision to close the NHR program to new applicants.
Whilst things in Portugal are not so bad at all and it continues to be an attractive destination, other countries are trying to jump on the "let's bring well-educated high-earning expats by offering tax benefits" bandwagon.
Spain's equivalent of the NHR program is nicknamed "the Beckham law" after one of the first beneficiaries. It is generally a less lucrative program (see separate article) but with one major benefit over NHR - no reporting requirements of foreign sourced income.
The Beckham law is not new, but in the past, it only applied to employees working in Spain for a Spanish company or branch. Not anymore. At the end of 2022 / beginning of 2023, the law has been amended to also apply to digital nomads, but until now, digital nomads have not in fact been given a technical way to apply to the program.
The Spanish government has just announced that Entrepreneurs / digital nomads and family arrived into Spain in 2022 or 2023 that have acquired the status of the Spanish tax residents in 2023 will all be grandfathered into the program so long as they apply to join it by 16th of June 2024. The government has also introduced the form (tax form 149) that now allows to apply to join the Beckham law as a digital nomad.
The Beckham law offers an exciting alternative to those who want to live in Spain.
To book a consultation on expat taxes in Spain, go to our services page, choose "Spain" and proceed to book.