One of the most common worries among foreign executives relocating to Spain to run a holding company is that simply being a director and shareholder will disqualify them from Spain’s special expat tax regime under Article 93 of the Personal Income Tax Law — widely known as the “Beckham Law” — which allows a flat, much lower tax rate instead of Spain’s ordinary progressive income tax scale during the first years of residence. A recent binding ruling from Spain’s Directorate-General for Taxation (DGT) clarifies how far that risk actually goes, and the news is broadly encouraging for anyone considering the move.
What the DGT ruling says
The ruling, reference V5360-26, deals with a director who also holds 50% of the share capital of a Spanish holding company. The DGT confirms an approach that has been taking shape for a while: being a director-shareholder with a 50% stake does not, on its own, rule out access to the expat regime. What matters is whether the company is classed as an “asset-holding” (patrimonial) entity or a genuinely operating business. If the holding carries out a real economic activity rather than simply owning and passively managing shares, property or other assets, the director-shareholder role does not close the door to the special regime. However, the DGT also requires proof of a genuine causal link between the appointment as director and the move to Spain — relocating and happening to take on the role at the same time is not enough; the appointment must, in substance, be the reason for the move.
What this means for you or your company
If you are structuring the arrival in Spain of a foreign executive or investor to head a holding company, this ruling opens a planning route worth examining carefully before taking any steps. Two points make the difference between qualifying and being excluded. First, the true nature of the holding: if its activity is limited to holding investments or property without active management, tax authorities may classify it as an asset-holding entity and deny the regime regardless of anything else. Second, the paper trail behind the appointment: the employment contract, board resolution, effective date and the overall timeline of the move need to line up coherently, so that the causal link can be demonstrated if the tax authorities ask.
In practice, this means planning ahead rather than improvising once the person has already settled in Spain. Reviewing the company’s real activity, properly documenting the appointment process, and coordinating the timing of the move with the timing of the appointment are the steps that determine whether someone enjoys a significantly more favourable tax rate for several years — or loses that opportunity over a formality.
At EBF Consulting we have long supported executives, investors and their companies through this kind of relocation to Spain, reviewing both the corporate structure and the documentation needed to access the expat regime with confidence. If you are considering a move of this kind, it is worth reviewing it before anything is signed — get in touch and we’ll look at it together.
Official reference: DGT binding ruling V5360-26 (reported in AEAFyT’s weekly tax bulletin, week of 7–11 September 2026).