Ireland Fiscal & Treaty Framework
1. Bilateral Tax Accord & Jurisdictional Allocation (Ireland)
Relocating from Ireland to Spain activates the provisions of the Convention between Ireland and the Kingdom of Spain for the Avoidance of Double Taxation (1994). Under Article 15 of this bilateral accord, employment income is strictly allocated based on physical presence. If you move your tax residency from Ireland without electing the 24% Beckham Law regime via Form 149, the Spanish Tax Authority (AEAT) will subject your worldwide earnings to progressive Spanish income tax (IRPF) reaching up to 47% (and up to 54% in autonomous regions like Valencia).
By contrast, electing the Special Regime for Inbound Workers (Article 93 LIRPF) caps your Spanish employment tax at a flat 24% for active labor income up to €600,000 per year. Furthermore, foreign-sourced passive income (such as dividends, interest, or rental yield originating in Ireland) remains 100% EXEMPT from Spanish income tax.
2. Taxation of Irish Key Employee Engagement Programme (KEEP) options, Unapproved Options, and RSUs.
A critical area of divergence for executives from Ireland involves Irish Key Employee Engagement Programme (KEEP) options, Unapproved Options, and RSUs.. Under DGT Binding Ruling V0813-23, unvested equity grants are time-sliced across the vesting grant period: only the fraction of workdays physically performed on Spanish soil is added to your Spanish 24% taxable base.
Regarding corporate distributions, 15% Irish Dividend Withholding Tax (DWT) rate under Article 10 for Spanish residents. This provides significant cash flow protection compared to standard non-resident rates.
3. Statutory Departure & Compliance Requirements
Prior to relocating from Ireland, you must address local departure formalities: Irish Revenue Ordinary Residence rules apply for 3 tax years after departure; claim Split Year Relief. Transition from Irish Remittance Basis to Spanish Modelo 151 special non-resident regime. Irish Approved Retirement Funds (ARF) / PRSA distributions evaluate under Treaty Article 17.