Conflict surrounding the tax regime for inpatriates: the need for reform and legal certainty

Abstract

This paper analyses the conflicts generated in practice by the application of the special tax regime for workers, professionals, entrepreneurs and investors displaced to Spanish territory, regulated in Article 93 of the LIRPF (Personal Income Tax Law). Since its introduction in 2003, the regime has undergone successive legislative amendments that have broadened and restricted its subjective scope, without its purpose being clearly defined. In recent years, the increase in inspections by the Spanish Tax Agency (AEAT) and interpretative doubts about the requirements for access —especially the so-called causal link— have generated growing legal uncertainty. Based on an analysis of regulatory developments, case law and administrative doctrine, the main problematic aspects are identified and proposals are formulated aimed at strengthening the legal certainty of the regime.