France Fiscal & Treaty Framework
1. Bilateral Tax Accord & Jurisdictional Allocation (France)
Relocating from France to Spain activates the provisions of the Convention Fiscale du 10 octobre 1995 entre la France et l'Espagne. Under Article 15 of this bilateral accord, employment income is strictly allocated based on physical presence. If you move your tax residency from France 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 France) remains 100% EXEMPT from Spanish income tax.
2. Taxation of Actions Gratuites (AGA) and Bons de Souscription d'Parts de Créateur d'Entreprise (BSPCE).
A critical area of divergence for executives from France involves Actions Gratuites (AGA) and Bons de Souscription d'Parts de Créateur d'Entreprise (BSPCE).. 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% Retenue à la source on French dividends under Article 12 of the French-Spanish Treaty. This provides significant cash flow protection compared to standard non-resident rates.
3. Statutory Departure & Compliance Requirements
Prior to relocating from France, you must address local departure formalities: Exit Tax (Article 167 bis CGI) applies to global financial assets >€800,000. Quitter la France requires filing Form 2042-NR with Centre des Impôts des Non-Résidents. Retraite française de source publique stays subject to French tax under Article 19.