The Spanish Central Economic-Administrative Court (TEAC) has issued a landmark ruling (Resolution 00/00636/2022, dated 19 November 2024) that marks a significant shift in the interpretation of the so-called Beckham Law —the Spanish special tax regime for inbound expatriates— with major implications for foreign professionals and investors relocating to Spain.
This decision is particularly relevant for individuals who, upon moving to Spain, take on executive or managerial roles, especially those who also hold formal positions as company administrators (administradores societarios). Historically excluded from the regime, these profiles may now benefit from the favourable 24% flat tax rate under the special expat tax regime.
Understanding the Background: The Theory of the Link
Until now, Spain’s Tax Administration often denied access to the Beckham Law (Article 93 of the Spanish Income Tax Act) in cases where the applicant also served as a member of the company’s board of directors or was appointed as an administrator.
This restrictive interpretation was based on the Spanish civil law doctrine known as the “theory of the link” (teoría del vínculo), which presumes that, in such cases, the mercantile relationship as a director prevails over any employment contract. As a result, many expatriates in senior roles were excluded from the regime, regardless of the real nature of their day-to-day responsibilities or the existence of a genuine employment relationship.
The Turning Point: What the TEAC Has Clarified
In this groundbreaking ruling, the TEAC rejects the automatic disqualification of company administrators from the Beckham Law. Instead, the Court adopts a more nuanced, case-by-case approach, aligning Spanish administrative practice with EU jurisprudence (notably CJEU Danosa C-232/09 and Balkaya C-229/14) and recent Spanish Supreme Court rulings (including decisions from June, July and November 2023).
In particular, the TEAC establishes that:
- Holding a company director or administrator role does not automatically exclude an expatriate from accessing the special non-resident tax regime in Spain;
- Courts and tax authorities must evaluate whether there exists a real and remunerated employment relationship, independent from the administrative appointment;
- The so-called “theory of the link” cannot be applied indiscriminately to override the substance of an employment agreement.
This doctrinal shift significantly enhances legal certainty for expatriates and international businesses operating in Spain.
Why This Matters: Strategic Implications for International Tax Planning
From a legal and tax advisory perspective, this development is highly relevant for:
- Start-up founders relocating to Spain who hold shares and administrative roles in their own companies;
- Family offices and HNWIs moving key personnel or investment structures to Spain;
- International executives seconded to Spanish subsidiaries under contracts that include directorships.
In all these cases, the TEAC’s ruling removes a key barrier that previously deterred applicants from using Spain’s expat tax regime. It also ensures compliance with EU legal principles, preventing arbitrary exclusions based on rigid legal formalism.
Our View
At Lullius Partners, we welcome this decision as a clear step toward a more coherent, internationally aligned and investor-friendly tax environment in Spain. The ruling reflects a modern understanding of corporate governance, in which management and control often coexist with employment relationships—especially in the context of multinational structures and cross-border relocations.
We believe this ruling will strengthen Spain’s appeal for global talent, while enabling companies to structure executive appointments in a way that is both tax-efficient and legally secure.
As a top-ranked boutique law firm specialising in Private Wealth, International Tax and cross-border mobility, we assist our clients with:
- Eligibility analysis for the Beckham Law and other expat tax benefits in Spain;
- Tax-efficient structuring of company roles and employment contracts;
- Full legal and compliance support before the Spanish tax authorities.
Whether you are an executive relocating to Spain or an international group planning to move key personnel, we are here to ensure optimal tax outcomes with full regulatory compliance.
