Non-Resident Income Tax and the Beckham Law: Rising Revenue, Audits and Controversy

Introduction

Non-Resident Income Tax (IRNR) is at the centre of a twofold tax trend: Tax Agency revenue rose sharply, by 38% in the first four months of 2025 alone, while international controversy is growing over audits of taxpayers covered by the special regime for inbound workers, commonly known as the Beckham Law.

1. 2025 IRNR revenue: figures and drivers

• In the first four months of 2025, IRNR revenue reached €1.674 billion, 38% more than in the same period of 2024.

• For all of 2024, revenue exceeded €4 billion, a year-on-year increase of 25.4%.

The Tax Agency attributes this increase to:

• Growth in investment income, especially dividends paid to non-residents.

• A possible base effect after significant refunds in 2023.

• Greater voluntary compliance following the announcement of stronger checks in the 2025 Tax Control Plan.

2. Audits and control of non-residents: a strategic priority

In its 2025 Tax and Customs Control Plan, the Tax Agency identifies the following as priorities:

• Checking undeclared rental income earned by non-residents.

• Monitoring capital gains from property sales.

• Correcting under-withholding on income earned by non-resident artists and athletes.

• Reviewing misuse of the Beckham regime, in coordination with the Directorate General for Taxation.

These measures are intended to improve tax fairness, but they are also creating international tensions.

3. The dispute with Amsterdam & Partners LLP: criticism of the Tax Agency

The international law firm Amsterdam & Partners LLP has launched a media campaign criticising the Tax Agency’s handling of the Beckham Law. Its main allegations include:

• Discriminatory treatment of foreign taxpayers.

• Arbitrary audits described as “abuses of power”.

• Failure to comply with the Agency’s own Code of Ethics.

The firm sent the Tax Agency a 13-question questionnaire seeking transparency on the proportion of audits, selection criteria, time limits, the effects of the 2023 regulatory review, and the treatment of Form 720 and the Solidarity Tax under the Beckham regime.

It has also created the “Spanish Tax Pickpockets” website as part of its international communications strategy, prompting coverage by media including The Financial Times and The Wall Street Journal.

4. Institutional response and critical analysis

The Tax Agency has defended its actions with the following figures:

• Only 0.5% of the 37,000 taxpayers covered by the special regime have been audited.

• 70% of assessment reports are settled by agreement.

• Fraud has been detected involving fictitious employment contracts and shell companies used to access the regime.

Critical analysis:

• Although the official figures suggest the problem is limited in scale, a lack of transparency and clear communication is damaging the Agency’s reputation and eroding trust.

• The intense focus on wealthy foreign taxpayers may be perceived as tax hostility.

• The narrow scope for interpreting the requirements to enter and remain in the Beckham regime leaves grey areas that the Tax Agency pursues aggressively through audits.

5. International comparison and country risk

• Similar regimes in Italy, Portugal and France offer competitive incentives and more stable institutional communication.

• Perceived legal uncertainty may affect foreign investment and the return of skilled workers.

• Reputational risk to the country grows when disputes are litigated in European courts or become a media focus.

6. Recommendations for tax advisers

• Strengthen formal compliance when applying the Beckham regime.

• Document in detail the inbound worker’s genuine employment relationship.

• Be prepared for information requests or audits, even where there is no prior risk history.

• Explain the current range of legal uncertainty to clients.

• Anticipate the effects of possible reforms arising from the “Madrid Memorandum”, which Amsterdam & Partners has announced as its next step.

Conclusion

The rise in IRNR revenue is undeniable, but it cannot be understood separately from institutional conflict and growing international scrutiny of how the Beckham regime is applied. Spain’s tax system should combine effective revenue collection with legal certainty and respect for sound administration. Transparency, consistent interpretation and proportionate audits must be preserved if Spain is to build a competitive and fair tax system.