Taxation of primary residence under the special tax regime for impatriates (Beckham Law): exempt or subject to taxation?
By Pilar Boria, Tax partner, Global Mobility manager at Forvis Mazars, and Beatriz de Muller, Tax Manager at Forvis Mazars.
The tax treatment of the primary residence under the special tax regime for impatriates continues to generate debate and controversy.
Traditionally, the Spanish Tax Authorities have argued that, when paying tax under the Non-Resident Income Tax Law (NRIT), taxpayers under this regime must declare property income (imputed income) simply for owning urban properties in Spain, including their primary residence. The NRIT regulations do not provide for a specific exemption, unlike the Personal Income Tax (art. 85), which expressly excludes from taxation the primary residence.
This criterion was challenged by the High Court of Justice of Madrid in a ruling on 6 May 2024, which concluded that impatriates retain their status as tax residents and, consequently, their primary residence should not generate imputed income.
At the same time, on 18 June 2025, the European Commission opened infringement proceedings against Spain on the grounds that this taxation could violate the free movement of workers and capital enshrined in the Treaty on the Functioning of the European Union.
However, recently, the Central Economic-Administrative Court (TEAC), in a ruling dated 17 July 2025, reaffirmed the Spanish Tax Authorities' interpretation: the literal wording of Article 13 of the NRIT Law requires the imputation of income from properties for ownership of the home, even when it is the primary residence.
Conclusions
We are therefore faced with a scenario of great legal uncertainty: while the courts and the European Commission question the taxation of impatriates' primary residences, the Spanish Tax Authorities and the TEAC maintain the opposite view.
At Forvis Mazars Spain's Tax department, we analyse the implications of these criteria in detail and advise taxpayers on the correct application of this special tax regime.
Would you like to know how this debate may affect your case? Contact our team for a personalised review.
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