Those under the Beckham Law must pay tax on FOREX gains with a Spanish counterparty

The tax treatment of foreign exchange and FOREX operations for taxpayers under the special regime for displaced workers has been defined following a recent resolution from the Directorate General of Taxes (DGT). The inquiry addresses whether profits obtained through these operations must be included in the taxable base of Personal Income Tax (IRPF).

What the DGT has resolved

The DGT establishes that FOREX and foreign exchange operations carried out for investment purposes have the nature of capital gains or losses. The key point of the resolution lies in the location of the income: when these operations are carried out over-the-counter (OTC) and the counterparty is a Spanish securities company, the gain is considered to have been obtained in Spain in accordance with the Recast Text of the Non-Resident Income Tax Law (TRLIRNR).

Consequently, although the taxpayer is under the special regime of Article 93 of the IRPF Law, these earnings are not exempt due to their foreign origin, as the regulations link them to the national territory because of the entity with which the operation is conducted.

What this means for you

If you are a resident in Spain under the special regime for displaced workers (known as the Beckham Law) and you make investments in foreign exchange markets, you must pay special attention to the entity with which you trade. If you use a platform or securities company based in Spain to execute your FOREX operations, the profits obtained will not enjoy the exemption applicable to income obtained abroad.

This implies that such gains must be included in your tax return, directly affecting your taxable base and the calculation of your annual tax burden.

What you should do

It is necessary to analyze the nature of the counterparties used in foreign exchange operations. To determine whether income must be taxed in Spain under the special regime, it must be verified whether the entity acting as the counterparty is a Spanish securities company or if the operation is carried out entirely outside the Spanish territorial scope. It is recommended to evaluate the structure of the investment platforms used to avoid surprises during the tax settlement.