Tax guide for Italians in Spain: regime forfettario, Convention 1977 and Beckham 2026

An Italian freelancer who moves to Spain expecting to keep their regime forfettario discovers too late that the scheme is tied to Italian fiscal residence, and faces a much higher tax burden than anticipated — without the planning to mitigate it.

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Why BMC

Specialised advice and personal service

BMC analyses your situation before departure: correct closure of the regime forfettario, Beckham vs standard IRPF choice, full Convention 1977 mapping and structuring of residual Italian income from Spain.

  • The regime forfettario (Art. 1 Legge 190/2014) excludes non-residents, except EU/EEA residents producing at least 75% of their income in Italy, and cannot be used for work performed from Spain.

  • Convention 1977 assigns private INPS pensions to Spain (Art. 18) and public service pensions to Italy (Art. 19).

  • Italian company dividends carry a maximum 15% Italian withholding for Spanish residents (vs 26% default).

  • Beckham Law provides 24% flat IRPF for 6 years and eliminates Modelo 720 — a major benefit for Italians with significant Italian assets.

How we work

From first contact to case completion

  1. Pre-departure tax audit

    Calculate the impact of losing the regime forfettario, compare Beckham vs general IRPF, map Italian income streams and their Convention 1977 treatment.

  2. Regime forfettario closure

    File Modello AA9/12 (cessazione attività partita IVA) with Agenzia delle Entrate within 30 days of cessation. Complete final VAT settlement.

  3. Choose Spanish tax regime

    Decide Beckham (Modelo 149 within 6 months) or general IRPF. Register for RETA if self-employed in Spain. File Modelo 036 for business activity.

  4. Optimise Italian income

    Provide AEAT certificate to Italian banks and companies for Convention 1977 reduced withholding (dividends 15%, interest 12%). Verify pension type (Art. 18 vs Art. 19).

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The problem

An Italian freelancer who moves to Spain expecting to keep their regime forfettario discovers too late that the scheme is tied to Italian fiscal residence, and faces a much higher tax burden than anticipated — without the planning to mitigate it.

Our solution

BMC analyses your situation before departure: correct closure of the regime forfettario, Beckham vs standard IRPF choice, full Convention 1977 mapping and structuring of residual Italian income from Spain.

Process

How we do it

1

Pre-departure tax audit

Calculate the impact of losing the regime forfettario, compare Beckham vs general IRPF, map Italian income streams and their Convention 1977 treatment.

2

Regime forfettario closure

File Modello AA9/12 (cessazione attività partita IVA) with Agenzia delle Entrate within 30 days of cessation. Complete final VAT settlement.

3

Choose Spanish tax regime

Decide Beckham (Modelo 149 within 6 months) or general IRPF. Register for RETA if self-employed in Spain. File Modelo 036 for business activity.

4

Optimise Italian income

Provide AEAT certificate to Italian banks and companies for Convention 1977 reduced withholding (dividends 15%, interest 12%). Verify pension type (Art. 18 vs Art. 19).

5

Modelo 720 planning

Declare Italian assets by category (accounts, shares, real estate) if > €50,000. Not required under Beckham. Deadline: January-March of the following year.

6

Annual IRPF filing

Integrate Italian-source income with Convention 1977 Art. 22(3) credit. Report Italian withholding suffered in the Spanish return.

5%
Forfettario rate (first 5 years)
15%
Forfettario rate (standard)
Max 15%
Italian dividend withholding (Convention)
24%
Beckham IRPF rate (6 years)
€653.59/month
Minimum RETA monthly base (2026, lowest bracket)
€600,000
Beckham income cap

Tax in Spain for Italians: regime forfettario, Convention 1977 and Beckham Law 2026

For an Italian freelancer or business owner moving to Spain, tax planning is not optional — it is essential. The regime forfettario that allowed paying 5 or 15% in Italy cannot be brought to Spain. The Convention 1977 assigns income in ways that are often counter-intuitive. And Beckham Law can fundamentally transform your tax position for the first 6 years.

The regime forfettario: what you are giving up

The regime forfettario is Italy’s most popular tax scheme for self-employed individuals: 5% rate in the first 5 years of activity, then 15% on a flat-rate income (turnover × profitability coefficient by sector), with no VAT charged, no IRAP, and simplified accounting.

Its appeal is clear: a management consultant with €60,000 turnover might pay around €7,200 tax (15% on €48,000 flat-rate income with 80% coefficient) — versus €20,000+ under the standard regime.

But non-residents are excluded, with a narrow EU/EEA exception.

The UE-resident exception: narrow and contested

The Legge 190/2014, Art. 1, comma 57, letter b) excludes from the regime forfettario persons who are not resident in Italy, with an exception for residents of an EU/EEA State with adequate exchange of information, but only if income produced in Italy represents 75% or more of their total income. Self-employment income of a non-resident is produced in Italy only if the activity is performed in Italy (Art. 23(1)(d) TUIR), so the exception does not cover work performed from Spain. Moving abroad ends the regime from the following year (comma 71; Agenzia delle Entrate, Risposta n. 149/2025).

Practical implications

If you had regime forfettario in Italy:

  1. You must declare the cessation of your activity to the Agenzia delle Entrate within 30 days (Art. 35(3) DPR 633/1972)
  2. Complete the final VAT settlement for the year of closure
  3. File a final Redditi PF (Italian income tax return) for the year of departure

From Spain, your options:

  • Beckham Law: 24% up to €600,000 for the year of the move and the next five, but only for activities qualified as entrepreneurial (ENISA report) or highly qualified professionals for start-ups or R&D+i (Art. 93(1)(b) LIRPF); ordinary freelancers are not covered
  • Standard IRPF (estimación directa simplificada): progressive state and regional scales with full deductions
  • For very low incomes (< €35,000), the progressive scale may produce a lower effective rate than 24%

Convention 1977 article by article

Full attribution table

ArticleIncome typeAttribution ruleMax Italian withholding
6Italian real estate incomeItalyStandard rate
10DividendsBoth States15%
11InterestBoth States (Italian public debt exempt in Italy)12%
12RoyaltiesBoth States4% (copyright on literary, dramatic, musical or artistic works) or 8%
13 §1Capital gains: Italian real estateItalyStandard rate
13 §3Capital gains: company sharesSpain only-
14Professional incomeSpain (unless fixed base Italy)—
15Employment incomeState of activity—
18Private pensionsSpain only—
19Public service pensionsItaly only, unless the pensioner is a Spanish national resident in Spain-
22Elimination of double taxation (credit method)Credit in residence State-

Art. 10 — Italian dividends: claiming the reduced rate

Standard Italian withholding on dividends to non-residents: 26%. Convention 1977 Art. 10 reduces the maximum to 15% for Spanish residents, whatever the size of the holding.

How to claim the reduced rate:

  1. Obtain the AEAT fiscal residence certificate
  2. Send it to the Italian SRL or SPA distributing dividends, or to the custodian bank
  3. Without the certificate: 26% applied by default; excess over 15% may be reclaimed via the Agenzia delle Entrate

In Spain: the gross dividend is included in the savings income base (19-30% scale). The Italian 15% withholding is credited against Spanish IRPF under Art. 22(3) Convention.

Art. 11: Italian interest, withholding capped at 12%

Italy may tax interest from Italian bank accounts or bonds, but not above 12% if you are the beneficial owner (Art. 11(2)); interest paid by the Italian government or its local authorities, such as on BTP (Italian government bonds), is exempt in Italy (Art. 11(3)(a)). Provide the AEAT certificate to your Italian bank.

Art. 18 vs Art. 19 — Pensions: the most critical distinction

Art. 18 — Private employment pensions: INPS pension from private sector employment → taxed exclusively in Spain.

  • If Italy withholds tax, reclaim it with the AEAT fiscal residence certificate (Art. 27)
  • Declare pension only in Spanish IRPF

Art. 19 — Public service pensions: Pension from Italian State/regional/municipal employment → taxed exclusively in Italy, unless you are a Spanish national resident in Spain (Art. 19(2)).

  • Italian IRPEF withholding continues
  • Spain exempts it, but may take it into account to compute the tax on your other income (Art. 22(4))
  • Covers: state civil servants, public teachers, military, police (Polizia, Carabinieri), magistrates, public healthcare workers

Professional pension funds (grey zone): Cassa Forense (lawyers), ENPAM (doctors), Inarcassa (engineers/architects), ENPAP (psychologists). Classification under Art. 18 or Art. 19 depends on the legal nature of each fund — analysis required case by case with a qualified adviser.

Art. 22: credit method worked example

Scenario: €10,000 dividend from Italian SRL, Italian withholding 15% = €1,500 retained.

StepCalculationAmount
Gross dividend—€10,000
Italian withholding (15%)€10,000 × 15%€1,500
Net received€10,000 − €1,500€8,500
Spanish IRPF on €10,000€6,000 × 19% + €4,000 × 21% (savings scale)€1,980
Less: Art. 22(3) creditItalian tax paid−€1,500
Net Spanish IRPF due€1,980 − €1,500€480
Total tax paid€1,500 + €480€1,980 (19.8%)

RETA vs Italian social contributions: the real comparison

Spanish self-employed workers (autónomos) pay monthly RETA contributions based on their expected net income, under a general and a reduced table of brackets (RDL 13/2022). In 2026 the 2025 tables still apply (Art. 3(4) RDL 3/2026): the minimum monthly contribution base ranges from €653.59 (net income up to €670 a month) to €1,928.10 (net income above €6,000 a month), and the rate for common contingencies is 28.30% (Orden PJC/297/2026). You can choose a higher base within your bracket.

Key difference: RETA covers Spanish Social Security (pension, healthcare, sick pay), while the Italian gestione separata is for INPS pension only. The comparison should account for the full social protection package.

Beckham Law: the major advantage for Italians with Italian assets

Beckham Law (Art. 93 LIRPF) provides three key advantages for Italians with significant Italian patrimony:

Advantage 1: 24% flat IRPF on Spanish income

Instead of the progressive state and regional scales, you pay 24% on income up to €600,000 (47% above), for the year of the move and the following five years; all employment income and qualifying entrepreneurial income counts as obtained in Spain (Art. 93(2)(b) LIRPF).

Advantage 2: No Modelo 720, wealth tax only on Spanish assets

Under Beckham, you are not required to declare Italian assets via Modelo 720 (DGT V0092-14), and you pay the Spanish Impuesto sobre el Patrimonio only on assets located in Spain (obligación real, Art. 93(1) LIRPF). For an Italian with:

  • An apartment in Milan (€600,000)
  • SRL shares (€300,000)
  • Italian savings account (€250,000)

…none of these Italian assets is reported in Modelo 720 or taxed by the Spanish wealth tax.

Advantage 3: Italian income exempt from Spanish IRPF

Under Beckham, income other than employment and qualifying entrepreneurial income is taxed only if it is Spanish-source: your Italian interest income and Italian rental income are not taxed in Spain (though they remain taxable in Italy per the Convention). Pensions, however, are employment income in Spanish law (Art. 17(2)(a) LIRPF), and all employment income is deemed obtained in Spain under the regime (Art. 93(2)(b)).

The 6-month deadline: non-negotiable

Modelo 149 must be filed within 6 months of the start of activity shown in your Social Security registration (Art. 116 RIRPF). The regulation provides no extension.

Beckham eligibility for Italians

  • Employee with Spanish employment contract or secondment
  • Entrepreneur with ENISA-endorsed innovative project (Ley Startups 2022)
  • Employee working remotely from Spain using exclusively IT and telecommunications means
  • Director of a company, with no shareholding cap unless the company is a wealth-holding entity (then < 25%)

Italian-source income in the Spanish IRPF return

Rental income from Italian property

  • Taxed in Italy (Art. 6 Convention): cedolare secca 21% (10% for certain agreed-rent contracts) or standard IRPEF (Art. 3 D.Lgs. 23/2011)
  • Also declared in Spain in the general income base
  • Art. 22(3) credit: Italian tax credited against Spanish IRPF

Capital gains on Italian real estate

  • May be taxed in Italy (Art. 13(1) Convention)
  • Credit in Spain via Art. 22(3)

Capital gains on SRL/SPA shares

  • Under Art. 13(3) Convention: taxed only in Spain (residence State of the seller)
  • Italy cannot tax the gain if you are a Spanish resident at the time of sale

Key tax deadlines for Italians in Spain

DeadlineObligation
Within 90 days of moveAIRE registration
Within 6 months of the start of activity (SS registration)Modelo 149 (Beckham), if eligible
Within 30 days of cessationCessation declaration to the Agenzia delle Entrate (Art. 35(3) DPR 633/1972)
1 January to 31 MarchModelo 720 (Italian assets declaration)
April-JuneSpanish IRPF annual return
April-JuneItalian Redditi PF (for Italian-source income)

This document is for informational purposes only. Tax rules evolve and should be verified with qualified advisers before making decisions. (Confirm the EU-resident exception to regime forfettario for non-residents, and the classification of professional pension funds under Convention 1977 Art. 18 vs Art. 19, with qualified advisers before making decisions).

FAQ

Frequently asked questions

As a rule, no. The regime forfettario (Art. 1(54) to (89) Legge 190/2014, Legge di Stabilità 2015) applies a substitute tax of 15% (5% in the start-up year and the following four years for new activities that meet the conditions) in lieu of IRPEF, its regional and municipal surcharges and IRAP (paragraphs 64 and 65); forfettario taxpayers do not charge VAT on domestic supplies (paragraph 58). Non-residents are excluded (paragraph 57(b)), unless they reside in an EU or EEA State with adequate exchange of information and produce in Italy at least 75% of their total income. Self-employment income of a non-resident is produced in Italy only if the activity is performed in Italy (Art. 23(1)(d) TUIR), so the exception does not cover work you perform from Spain. Moving your residence abroad takes you out of the regime from the following year (paragraph 71; Agenzia delle Entrate, Risposta n. 149/2025). In Spain, self-employment income is taxed under the general progressive IRPF scale; the flat 24% of Art. 93 LIRPF does not cover ordinary freelancers.
Art. 14 of the Italy-Spain Convention 1977 covers independent professional services. The general rule: income from professional activity is taxed only in the State of residence (Spain), UNLESS the professional regularly has a fixed base in Italy for performing the activity. If you work from Spain for Italian clients without a fixed base in Italy, your income is taxable only in Spain. If you maintain an office or studio in Italy that you regularly use, the income attributable to that fixed base may be taxed in Italy, and Spain deducts the Italian tax, up to the Spanish tax on that income (Art. 22(3) of the Convention).
Dividends paid by an Italian SRL to a Spanish-resident shareholder are subject to Italian withholding tax. The domestic rate on investment income is 26% (Art. 3(1) Decree-Law 66/2014). Under Art. 10(2) of the 1977 Convention, Italian tax may not exceed 15% of the gross dividend if you are the beneficial owner; the Convention has no lower rate for larger holdings. Tax withheld above that limit is refunded on request, with an official certificate of residence from the State of residence (Art. 27): in Spain, the AEAT fiscal residence certificate. In Spain, the dividend is included in the savings base, taxed at 19% up to 6,000 euros, 21% up to 50,000, 23% up to 200,000, 27% up to 300,000 and 30% above (combined state and regional scales, Arts. 66 and 76 LIRPF). Spain deducts the Italian tax paid, up to the Spanish tax on that income (Art. 22(3) of the Convention; Art. 80 LIRPF).
The treatment depends on the nature of your former employment. Convention 1977 Art. 18, private employment pensions: a pension paid for past employment in the private sector is taxed only in the State of residence, Spain. If Italy has withheld tax on it, the Convention provides for a refund on request, within the deadlines of Italian law and with an official certificate of residence from Spain (Art. 27). Convention 1977 Art. 19(2), public service pensions: pensions paid by the Italian State or its political subdivisions or local authorities for services rendered to them are taxed only in Italy, unless you are resident in Spain and a Spanish national, in which case only Spain taxes them. Spain exempts the pensions that only Italy may tax, but may take them into account to calculate the tax on your other income (Art. 22(4)).
If you are a Spanish fiscal resident (outside Beckham Law), you must declare Italian assets via Modelo 720 when the combined value in a category exceeds 50,000 euros. Category 1, accounts: the obligation arises if either the combined balances at 31 December or the combined average balances of the last quarter exceed 50,000 euros (Art. 42 bis RD 1065/2007). Category 2, securities, insurance and similar assets held abroad: SPA shares, SRL quotas, Italian investment funds, life insurance (Art. 42 ter). Category 3, real estate: combined acquisition value above 50,000 euros (Art. 54 bis). Deadline: 1 January to 31 March; in later years you only file again if the value of a category has increased by more than 20,000 euros. The Court of Justice of the EU found the former penalty regime contrary to EU law in its judgment of 27 January 2022 (C-788/19). Under Beckham Law, no Modelo 720 is required, because the taxpayer is not taxed on worldwide income (DGT binding ruling V0092-14).
For an ordinary freelancer the question usually does not arise: the special regime of Art. 93 LIRPF does not cover ordinary self-employment, only an economic activity qualified as entrepreneurial with a favourable ENISA report (Art. 70 Ley 14/2013) or a highly qualified professional providing services to start-ups or carrying out training, research, development and innovation (Art. 93(1)(b)(3) and (4)). Where it applies, Beckham taxes the general base at 24% up to 600,000 euros (47% above) and savings income at 19% to 30%, for the year of the move and the following five years; employment and qualifying entrepreneurial income is deemed obtained in Spain, and other income is taxed only if it is Spanish-source (Art. 93(2)). There is no Modelo 720 (DGT V0092-14), but the taxpayer is subject to Impuesto sobre el Patrimonio on assets located in Spain (obligación real, Art. 93(1)). Standard IRPF taxes worldwide income on the progressive state and regional scales, with personal allowances and deductions.

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Frequently asked questions

Questions about Tax in Spain for Italians: regime forfettario, Convention 1977 and Beckham Law 2026

As a rule, no. The regime forfettario (Art. 1(54) to (89) Legge 190/2014, Legge di Stabilità 2015) applies a substitute tax of 15% (5% in the start-up year and the following four years for new activities that meet the conditions) in lieu of IRPEF, its regional and municipal surcharges and IRAP (paragraphs 64 and 65); forfettario taxpayers do not charge VAT on domestic supplies (paragraph 58). Non-residents are excluded (paragraph 57(b)), unless they reside in an EU or EEA State with adequate exchange of information and produce in Italy at least 75% of their total income. Self-employment income of a non-resident is produced in Italy only if the activity is performed in Italy (Art. 23(1)(d) TUIR), so the exception does not cover work you perform from Spain. Moving your residence abroad takes you out of the regime from the following year (paragraph 71; Agenzia delle Entrate, Risposta n. 149/2025). In Spain, self-employment income is taxed under the general progressive IRPF scale; the flat 24% of Art. 93 LIRPF does not cover ordinary freelancers.
Art. 14 of the Italy-Spain Convention 1977 covers independent professional services. The general rule: income from professional activity is taxed only in the State of residence (Spain), UNLESS the professional regularly has a fixed base in Italy for performing the activity. If you work from Spain for Italian clients without a fixed base in Italy, your income is taxable only in Spain. If you maintain an office or studio in Italy that you regularly use, the income attributable to that fixed base may be taxed in Italy, and Spain deducts the Italian tax, up to the Spanish tax on that income (Art. 22(3) of the Convention).
Dividends paid by an Italian SRL to a Spanish-resident shareholder are subject to Italian withholding tax. The domestic rate on investment income is 26% (Art. 3(1) Decree-Law 66/2014). Under Art. 10(2) of the 1977 Convention, Italian tax may not exceed 15% of the gross dividend if you are the beneficial owner; the Convention has no lower rate for larger holdings. Tax withheld above that limit is refunded on request, with an official certificate of residence from the State of residence (Art. 27): in Spain, the AEAT fiscal residence certificate. In Spain, the dividend is included in the savings base, taxed at 19% up to 6,000 euros, 21% up to 50,000, 23% up to 200,000, 27% up to 300,000 and 30% above (combined state and regional scales, Arts. 66 and 76 LIRPF). Spain deducts the Italian tax paid, up to the Spanish tax on that income (Art. 22(3) of the Convention; Art. 80 LIRPF).
The treatment depends on the nature of your former employment. Convention 1977 Art. 18, private employment pensions: a pension paid for past employment in the private sector is taxed only in the State of residence, Spain. If Italy has withheld tax on it, the Convention provides for a refund on request, within the deadlines of Italian law and with an official certificate of residence from Spain (Art. 27). Convention 1977 Art. 19(2), public service pensions: pensions paid by the Italian State or its political subdivisions or local authorities for services rendered to them are taxed only in Italy, unless you are resident in Spain and a Spanish national, in which case only Spain taxes them. Spain exempts the pensions that only Italy may tax, but may take them into account to calculate the tax on your other income (Art. 22(4)).
If you are a Spanish fiscal resident (outside Beckham Law), you must declare Italian assets via Modelo 720 when the combined value in a category exceeds 50,000 euros. Category 1, accounts: the obligation arises if either the combined balances at 31 December or the combined average balances of the last quarter exceed 50,000 euros (Art. 42 bis RD 1065/2007). Category 2, securities, insurance and similar assets held abroad: SPA shares, SRL quotas, Italian investment funds, life insurance (Art. 42 ter). Category 3, real estate: combined acquisition value above 50,000 euros (Art. 54 bis). Deadline: 1 January to 31 March; in later years you only file again if the value of a category has increased by more than 20,000 euros. The Court of Justice of the EU found the former penalty regime contrary to EU law in its judgment of 27 January 2022 (C-788/19). Under Beckham Law, no Modelo 720 is required, because the taxpayer is not taxed on worldwide income (DGT binding ruling V0092-14).
For an ordinary freelancer the question usually does not arise: the special regime of Art. 93 LIRPF does not cover ordinary self-employment, only an economic activity qualified as entrepreneurial with a favourable ENISA report (Art. 70 Ley 14/2013) or a highly qualified professional providing services to start-ups or carrying out training, research, development and innovation (Art. 93(1)(b)(3) and (4)). Where it applies, Beckham taxes the general base at 24% up to 600,000 euros (47% above) and savings income at 19% to 30%, for the year of the move and the following five years; employment and qualifying entrepreneurial income is deemed obtained in Spain, and other income is taxed only if it is Spanish-source (Art. 93(2)). There is no Modelo 720 (DGT V0092-14), but the taxpayer is subject to Impuesto sobre el Patrimonio on assets located in Spain (obligación real, Art. 93(1)). Standard IRPF taxes worldwide income on the progressive state and regional scales, with personal allowances and deductions.
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