A recent ruling issued by the Spanish Directorate-General for Taxation (DGT) sheds light on a key question affecting taxpayers under the special “inbound employees” regime (commonly known as the Beckham regime): income from self-employment or independent business activities may coexist with this regime provided that the services are performed outside Spain.
According to the DGT’s interpretation, generating self-employment income abroad does not automatically lead to exclusion from the regime. The decisive criterion is the physical place where the service is effectively carried out, not where the client or payor is located. Therefore, a taxpayer may continue to benefit from the special regime even if they perform independent activities, as long as those activities are carried out outside Spanish territory.
The ruling clearly distinguishes between two scenarios:
- Activity performed in Spain: If the service is provided from Spain, even when the recipient is abroad, the resulting income will result in the loss of eligibility for the Beckham regime.
- Activity performed abroad: If the taxpayer physically travels outside Spain to perform the service, the resulting income would not trigger exclusion from the regime, provided that the performance of the activity abroad can be duly evidenced.
In the case examined—a member of a UK LLP who does not render services or perform functions through the partnership—the DGT concludes that the taxpayer will not be excluded from the Beckham regime due to income received under a transparent income allocation regime.
This interpretation allows inbound taxpayers to combine their employment activity in Spain with professional services, as long as those services are carried out abroad. To sustain this compatibility, robust supporting evidence is essential: travel documents, contracts, invoices, and any proof demonstrating that the service was effectively performed outside Spain.
In a context of increasing international mobility, this criterion brings greater clarity and legal certainty to many individuals relocating to Spain.
Inmaculada Domecq
Head of Tax & Legal
