Spanish entrepreneurs have three main tax-optimization options: stay in Spain under Beckham Law, move to Portugal under IFICI, or relocate to Andorra. Here is the honest comparison.
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Spanish entrepreneurs paying 45–54% in income tax face a clear decision: optimize within Spain (Beckham Law), move to an EU neighbor (Portugal), or leave the EU for Andorra (0–10%). Each choice has real trade-offs that go beyond the headline tax rate.
FIXE GROUP has helped dozens of Spanish entrepreneurs through all three pathways. We model your specific numbers and lifestyle constraints and tell you which option generates the best real after-tax outcome — including setup costs, transition tax, and quality-of-life factors.
For Spanish entrepreneurs, the three most practical tax-optimization paths are: (1) Beckham Law in Spain — 24% flat on Spanish income, 0% on foreign income, no relocation required; (2) Portugal IFICI — 20% flat on qualifying Portuguese income, most foreign income exempt, requires 183 days in Portugal; (3) Andorra — 0–10% on all income, 90 days/year in Andorra, requires genuine deregistration from Spain. Andorra delivers the lowest effective rate but requires the cleanest break from Spain and lifestyle adaptation.
Requirements: not resident in Spain in the prior 5 years; moving for entrepreneurial activity, employment, or digital nomad purpose. Tax: 24% flat on Spanish income up to €600,000; 47% above; most foreign income exempt for 6 years. Who qualifies: entrepreneurs founding a Spanish company, executives hired by Spanish companies, digital nomads with a non-Spanish remote employer. Pros: no relocation required (if already in Spain for qualifying reason), 6-year window, EU/Schengen access unchanged, no lifestyle change. Cons: only useful for 6 years; requires qualifying trigger for application; Spanish-source income still taxed at 24%.
Requirements: not resident in Portugal in prior 5 years; qualifying sector (innovation, research, technology, strategic sectors). Tax: 20% flat on Portuguese qualifying income; most foreign income exempt for 10 years. Pros: EU residency, 10-year window (longer than Beckham), 3-hour flight from Spain, similar culture and language proximity, excellent quality of life. Cons: narrower eligibility than old NHR; must spend 183 days/year in Portugal; must genuinely be in a qualifying sector.
Requirements: 90 days/year in Andorra; €50,000 government deposit + €400,000 real estate investment or additional €300,000 deposit (passive residency); formal deregistration from Spain (critical — AEAT will scrutinize). Tax: 0% on first €24,000; 5% on €24,000–€40,000; 10% above. No capital gains tax. Pros: lowest effective tax rate in Europe for entrepreneurs; proximity to Barcelona (90 min) and skiing lifestyle; no expiry. Cons: not EU member (outside single market, Schengen); Spanish exit tax applies on unrealized gains above certain thresholds; AEAT aggressively pursues incorrect Andorra-based exit attempts.
Spain imposes an exit tax (Art. 95 bis LIRPF) on unrealized capital gains in shares, investment funds, and certain other assets when a tax resident leaves the country. Gains above €4,000,000 (or 25%+ of a qualifying company at €1M+) trigger immediate tax at capital gains rates (19–28%). This must be planned for — particularly for entrepreneurs holding significant company stakes.
Legal basis
Spain: Art. 93 LIRPF (Beckham)
Art. 95 bis LIRPF (exit tax)
Portugal: Law 82-E/2014, updated Law 28/2023
Andorra: Llei 5/2014
Andorra-Spain CDI (2015)
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