🇪🇸 Annual Compliance — Spain

Missing the Beckham Law application window

Fix: You must apply for the Beckham Law (Regimen Especial) within six months of your Spanish social security registration. The clock starts when you register, not when you arrive. Engage a tax advisor before relocating so the application is filed immediately upon registration. Missing this deadline means you cannot access the flat 24% rate and will pay progressive rates up to 47%.

Underestimating autonomo social security costs

Fix: Company directors who are also managing the business must register as autonomo and pay mandatory social security contributions. The new income-based system (from 2023) starts at around €300/month for low earners and scales up significantly. Factor this into your cost planning — it applies even if the company is not yet profitable.

Expecting fast incorporation like the UK or Estonia

Fix: Spanish company formation requires a notarial deed, capital deposit certification, and registration with the Registro Mercantil. The process typically takes 2–4 weeks and cannot be done entirely online. Plan for this timeline and start the NIE process well in advance if you are a non-resident.

Assuming Spain has no withholding tax on dividends to non-residents

Fix: Spain applies a 19% withholding tax on dividends paid to non-resident shareholders. This may be reduced under double tax treaties or eliminated within the EU Parent-Subsidiary Directive (for qualifying EU parent companies holding at least 5% for over one year). Structure your shareholding and jurisdiction carefully to minimise dividend leakage.