The taxation of non-resident workers in Spain in 2025 is an issue that, although it may seem technical, has practical and reputational implications for companies and managers. As we know, we are living in a time when talent moves easily, and it is extremely important to understand the tax obligations associated with the hiring or posting of non-resident workers to avoid penalties and protect the corporate image.
What does the taxation of non-resident workers involve?
A non-resident worker is a worker who does not stay more than 183 days in Spain during the calendar year and whose main economic and family interests are outside the country. These workers are taxed in Spain only on income obtained in Spanish territory, through the Income Tax for Non-Residents (IRNR).
Companies hiring non-resident workers must apply a withholding tax of 24% on income earned in Spain. However, if the worker is a tax resident in an EU country, Norway or Iceland, the withholding is reduced to 19%. These withholdings must be paid to the tax authorities by means of form 216 and summarised annually in form 296.
It is essential to correctly identify the tax residence of each employee before signing the contract and to ensure that the correct withholding tax is applied and that the correct tax forms are followed. Documenting all special situations, such as cross-border or impatriate workers, is key to avoid surprises in the event of an inspection.
Special cases
Cross-border workers, those who live in one country and work in another, have tax peculiarities. For example, the double taxation agreements with France and Portugal allow the worker to be taxed only in their country of residence, provided they meet certain requirements, such as a maximum distance of 20 km in the case of France. In these cases, the Spanish company does not have to withhold any taxes.
The optional regime for EU/EEA non-residents allows the worker, if he/she earns at least 75% of his/her income in Spain, to apply to be taxed as if he/she were a resident. This allows them to recover part of the withholding tax paid and is an interesting option for international profiles with significant economic ties in the country.
The Beckham Law, or impatriate regime, allows certain executives and professionals who move to Spain to be taxed as non-residents (fixed rate of 24%) for six years, even if they live in the country. This regime, designed to attract international talent, requires compliance with specific requirements and has been the subject of controversy and review by the Tax Agency to avoid fraud and abuse.
Reputation and compliance
The correct fiscal management of non-resident workers not only avoids sanctions, but also conveys seriousness, solvency and commitment to legality. Communicating transparency and compliance in the management of international teams reinforces the image of the company and its managers.
Taxation of non-resident workers in Spain in 2025 is a control tool, a reputational opportunity and a direct responsibility of leadership. It does not matter whether you manage international talent, corporate reputation or tax strategy. This is an issue that cannot be delegated without oversight.
At Confianz we help to ensure that international taxation is not an obstacle, but a competitive advantage. Does your company work with foreign managers or consultants? Do you have doubts about how to correctly apply the models or withholdings? Let’s talk about it.