Gutiérrez Pujadas & Partners

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IRPF

We’re pleased to delve into the recent Order HFP/1338/2023, published in the Official State Gazette (BOE) on December 15, 2023, bringing significant tax reforms, especially concerning Personal Income Tax (IRPF).

Key content of the order:

It aligns communication and declaration models with the new regulations for the special regime applicable to workers, professionals, entrepreneurs, and investors relocated to Spain, as per Article 93 of the IRPF Law, effective from January 1, 2023, under Law 28/2022.

Notable changes include reducing prior non-residency in Spain to five years and extending the special regime to new categories like remote workers, highly skilled professionals, among others, and their families under specific conditions.

Procedures and deadlines:

The option, waiver, or exclusion from this special regime must be communicated using Form 149, as approved in Annex II of the order. Taxpayers must electronically submit this communication with required documentation, as per Article 7.2, using the “Provide additional documentation” option online.

The main taxpayer must submit the communication before associated taxpayers, with varying deadlines depending on initiating activities in Spain or entering Spanish territory.

Specific situations:

For taxpayers who became tax residents in Spain before the order’s enforcement (before 12/16/2023), the deadline for opting into the special regime is six months from that date, unless specified otherwise per Article 116 of the Tax Regulation.

Regarding movements linked to employment relationships, remote work initiation, or becoming an entity’s administrator, opting into the special regime is allowed before the order’s enforcement under Article 119 of the Tax Regulation.

For renouncing, excluding, or ending the relocation, Form 149 is used. Renunciation occurs in November and December, attaching the stamped copy of data communication to the payer for employed workers.

Tax declaration:

Taxpayers under this regime must file the IRPF declaration using the new Form 151, approved in Annex I. This electronic submission follows general IRPF declaration deadlines. In case of tax to be paid via bank debit, it can occur up to five days before the submission deadline.

Changes in IRNR:

Order includes adjustments in Form 210 for Non-Resident Income Tax (IRNR). Notably, in rental income cases, the taxpayer must perform self-assessment.

In conclusion, this order brings substantial changes to taxation for relocated workers and professionals in Spain, offering new options and streamlined procedures. Understanding and meeting the new requirements and deadlines are crucial for affected taxpayers. We’ll keep our readers updated on further developments in this area.

 

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