Requirements to access the special regime under Article 93 LIRPF as an administrator

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the conditions that must be met for a foreign professional to benefit from the special regime provided for in Article 93 of the Personal Income Tax Law (LIRPF).

What the DGT has ruled

The body establishes that, to apply this regime, the relocation to Spanish territory must be a direct consequence of acquiring the status of an administrator. Residency alone is not enough; there must be a causal link between the position and the relocation.

Furthermore, the resolution details specific conditions depending on the nature of the entity:

• Holding companies: If the company is a holding company (entidad patrimonial), the administrator must not hold a shareholding that makes them a related party.
• Previous residence: The interested party must not have been a resident in Spain during the five years prior to the relocation.
• Permanent establishment: Income derived from a permanent establishment in the country must not be obtained.

What it means for you

This ruling has a direct impact on expatriates who take on administrative positions in Spain. If your arrival in the country is motivated by this appointment, you could opt to be taxed under the rules of the Non-Resident Income Tax (LIS), which alters your tax burden structure.

For companies, the nature of the entity is a determining factor. If the entity is a holding company, the administrator's ownership structure will be analyzed to verify whether it complies with the non-related party limit required by the regulations.

What you should do

Given the complexity of the requirements, it is essential to analyze the relationship between the position of administrator and the reason for the move to Spain. You must verify the residency history of the last five years and the shareholding structure in the entity to ensure compliance with the provisions of the LIRPF and the Non-Resident Income Tax Law (LIS). Each situation requires a technical assessment of the facts to determine the feasibility of this regime.