International mobility: the tax challenge of combining EOR and the Beckham regime

International mobility and taxation of transfers to Spain are becoming increasingly important in the strategic planning of many companies. The use of formulas such as Employer of Record (EOR) allows hiring without creating a local structure, but raises questions when combined with the special regime for transferred workers (Beckham Law).

In this context, Almudena Medina, a partner in the tax department, analyses in El Economista the possible compatibility between the two figures, pointing out that ‘the strategic needs of companies have increased cross-border transfers of workers to take on international projects’, promoting formulas such as the EOR, which allows hiring in Spain without creating a local structure. However, the key question is whether this figure can coexist with the application of the Beckham regime.

Our expert adds that ‘the cornerstone for benefiting from this regime is the causality of the transfer,’ recalling that ‘it is not enough to reside in Spain to access the Beckham regime; it is necessary to justify and be able to prove that the transfer is a consequence of one of the cases provided for in the regulation.’

It also warns about the particular nature of contracts through EORs, where ‘a triangular relationship is created in which the employee has a formal employer (the EOR) and a real or material employer (their foreign employer)’, which requires each specific case to be analysed in detail. In this regard, it concludes that ‘it is not possible to determine a priori the compatibility between EORs and the Beckham Law,’ so companies must properly structure the employment relationship to avoid tax risks in the transfer.