Resumen:
- Form 151: Personal Income Tax Return for individuals under the special regime applicable to workers relocated to Spain
- Which workers relocated to Spain are eligible for the relocated workers special Income Tax Return?
- Have you lived in Spain before?
- Do you have a work contract?
- Where do you work?
- Is your company in Spain?
If you are a foreigner working in Spain, you are probably obliged to file your Personal Income Tax Return. Income Tax Returns for relocated workers to Spain can be filed with Form 151.
Form 151: Personal Income Tax Return for individuals under the special regime applicable to workers relocated to Spain
The relocated workers regime is a special tax regime introduced some years ago to attract qualified workers to Spain and it’s addressed to all foreigners living and working in Spain.
To apply this special regime you need to notify eligibility and file your personal income with form 151. Income declared using form 151 will apply the same tax rates as the ones in the Non-Resident Income Tax Return (IRNR for its Spanish Acronym). In most cases, these rates are much lower than general tax rates. If you don’t use form 151, you will have to declare your personal income using form 100, like the rest of the tax payers.
By submitting form 151, any income resulting from the work relationship cannot be exempt of taxing in the Non-Resident Income tax. This is to avoid situations in which income is not taxed when applying IRPF or IRNR’s rules.
The non-resident rate will only be applicable to taxable employment income up to EUR 600,000 while any employment income exceeding that amount will be taxable at the marginal rate applicable to tax residents.
Which workers relocated to Spain are eligible for the relocated workers special Income Tax Return?
To be able to file your income tax return as a relocated worker using form 151 you must fulfill a series of characteristics. Answer the following questions and you will know if you’re eligible for the Special Tax Regime for relocated workers.
Have you lived in Spain before?
You are not allowed to have lived in Spain for the ten years prior to your new placement in Spanish territory. This basically implies that you are only eligible for the relocated workers special Income tax return if you acquired Spanish tax residence without having had it for the last 10 years. This means that as a worker you might have been staying in or travelling to Spain during the last 10 years, without being registered as a tax resident in the country.
Do you have a work contract?
The Spanish Revenue establishes that relocation to Spanish territory must take place due to a work agreement. This means that it’s not applicable to workers coming to Spain to obtain employment since the reason for relocation must be the work contract itself.
Where do you work?
In order to file form 151 it’s necessary that the work you have been contracted for is carried out in Spain.
Is your company in Spain?
The work must be performed for a company or business located in Spain. It’s also valid if the services result in benefits for a company or entity located in Spain or an establishment permanently located in Spain of an entity not located in Spain.
You can find further information about this tax in our IRNR guide: Non-Resident Income Tax using its Spanish acronym, or the Who must submit the Personal Income Tax Declaration in Spain wiki, in case you are not eligible for relocated workers regime and you need to file the General Income Tax Return.
