Context and Legal Background
Under the Beckham Law individuals who relocate to Spain may opt to be taxed as non‑residents while still being regarded as Spanish tax residents for up to six years. A Spanish national working for a British company decided to take advantage of this regime when he moved to Spain on 10 June 2024. He had previously been employed by the British firm since 2016, remained a tax resident in the United Kingdom and, upon relocating, registered with the Spanish Social Security system and filed form 149 to elect the special regime.
Before relocating, the employee had been awarded restricted stock unit (RSU) plans linked to his performance in fiscal years 2020–2023. The company granted four RSU plans corresponding to the 2021–2024 fiscal years, each with a schedule of quarterly share deliveries extending into future years. Although the shares would be delivered after the employee’s move to Spain, the awards were tied to work performed in previous years.
The key tax question raised was whether income from RSU deliveries made after the move should be taxed in Spain, given that the underlying performance occurred before the employee took up Spanish tax residence.
DGT Reasoning
The Spanish Tax Agency examined Articles 93 of the Personal Income Tax Law and 114 of its Regulations to determine when employment income is considered obtained during the application of the special regime. Article 93 sets out that individuals who become Spanish tax residents may choose to be taxed under the Non‑Resident Income Tax rules while applying specific modifications. Article 114 of the Regulations clarifies that income derived from activities performed before relocating to Spain “shall not be deemed to have been obtained during the application of the special regime”.
In the case of the RSU plans, the delivery of shares after June 2024 did not alter the fact that the underlying services were rendered abroad in earlier fiscal years. According to Article 13.1(c) of the Non‑Resident Income Tax Law (TRLIRNR), income from employment is considered obtained in Spain only when it derives “directly or indirectly, from a personal activity carried out in Spanish territory”. Because the employee’s performance leading to the RSU awards took place outside Spain, the subsequent deliveries could not be treated as income obtained in Spain.
Implications for Taxpayers
This binding consultation clarifies that, under Spain’s inbound workers’ regime:
- Employment income is taxed according to where and when the work was performed, not necessarily the moment when remuneration is paid. Remuneration for work done before relocating to Spain remains outside the special regime’s scope.
- Deferred compensation, such as RSUs that vest or are delivered after the move, does not attract Spanish taxation if it relates entirely to work carried out abroad prior to becoming a resident.
- For RSU income to be taxed in Spain under the special regime, there must be a clear link between the remuneration and a personal activity performed in Spanish territory.
Taxpayers electing the special regime should therefore review remuneration schedules and relocation timelines carefully. Employers should align award and vesting schedules with the employee’s residence status to avoid unintended Spanish reporting obligations.
Conclusion
The Directorate‑General for Taxation’s binding ruling on consultation V0425‑25 confirms that only remuneration linked to duties performed after a taxpayer’s relocation qualifies as income obtained during the special regime. RSU plans or similar deferred payments linked to pre‑relocation work abroad fall outside Spanish tax jurisdiction, even if shares are delivered after moving to Spain. This interpretation reinforces the territorial scope of Spain’s inbound workers’ regime and provides greater certainty for internationally mobile employees whose compensation includes deferred stock awards.
