International mobility of workers: A1 certificate, intra-corporate transfer and Modelo 247

The A1 certificate (the former E-101 form) is the document issued by the Tesorería General de la Seguridad Social (TGSS, the Spanish social security treasury) to certify that a worker posted temporarily to another country of the European Union, of the European Economic Area (Iceland, Liechtenstein and Norway) or to Switzerland remains subject to the Spanish Seguridad Social. With it, the company pays contributions only in Spain and the worker pays no contributions in the destination country.

Its legal basis is Reglamento (CE) 883/2004 (the EU social security coordination Regulation) and its implementing regulation, Reglamento (CE) 987/2009, which coordinate social security systems within the EU so that the same period of work does not generate double contributions.

A posting can be maintained for a maximum of 24 months. If it is expected from the outset to last longer, or if the worker moves onto a contract with the host company, the application is processed by the TGSS central services under Article 16 of the Regulation, which allows exceptional agreements between the two States.

The residence authorisation for an intra-corporate transfer (ICT) allows a multinational company to transfer to Spain a non-EU worker who already forms part of the same company or group. It is governed by Ley 14/2013, de 27 de septiembre, de apoyo a los emprendedores y su internacionalización (the Spanish Entrepreneurs Act), whose wording in force incorporates Directive 2014/66/EU (the ICT-EU regime was transposed by Real Decreto-ley 11/2018).

It is aimed at 3 profiles: managers, specialists (staff with specialised knowledge) and trainee workers. There are 2 types: the ICT-EU, which also allows subsequent movement to other Member States, and the national ICT.

It is decided by the Unidad de Grandes Empresas y Colectivos Estratégicos (UGE-CE, the large companies and strategic groups unit) of the Ministerio de Inclusión, Seguridad Social y Migraciones, within 20 days. If there is no decision within that period, it is deemed granted by positive administrative silence (silencio administrativo positivo). The authorisation is granted for a maximum of 3 years for managers and specialists, and 1 year for trainee workers.

Modelo 247 (Form 247) is the notification an employee files with the Agencia Tributaria (AEAT, the Spanish tax authority) when their employer posts them abroad and, for that reason, they are going to become a taxpayer under the Impuesto sobre la Renta de no Residentes (IRNR, non-resident income tax) instead of IRPF, the income tax for residents.

After the notification, the AEAT issues a document that the worker gives to their payer so that, from the date stated, withholdings are applied under the IRNR and not under IRPF. This avoids bearing a withholding designed for residents when they are no longer one.

The document has effect for a maximum of 2 calendar years: the year of the posting and the following one (or the 2 immediately following years if the year of the posting cannot be counted). Its legal basis is Article 32 of the texto refundido de la Ley del IRNR (the consolidated Non-Resident Income Tax Act) and Orden HAC/117/2003.

For the A1 certificate (form TA.300), the company provides its own contribution details and those of the worker, the destination country or countries, the expected start and end dates and evidence of the employment link that is maintained with the company in Spain.

For the ICT you have to prove the real activity of the company or group, the worker's prior employment or professional relationship (as a general rule, at least 3 months immediately before the transfer), a higher education qualification or equivalent experience in the case of managers and specialists, health insurance and the absence of a criminal record.

For Modelo 247, the worker needs a letter from the employer certifying the employment relationship, the destination country, the length of the contract and the start and end dates of the work abroad.

The deadlines differ from one procedure to another: the A1 is best applied for before departure and covers up to 24 months; the ICT is decided within 20 days with positive silence; and Modelo 247 can be brought forward to up to 30 days before departure, although it can also be filed once the posting has begun and until the end of its period of effect, with effects of up to 2 calendar years.

The A1 certificate carries no tasa (official fee). The exact price of each service (the official fees where they exist, including the consular fee for the ICT visa, and Managora's fees) is always available, kept up to date, on the page for each procedure. Managora prepares the forms, gathers the documentation and files each application with the authority for you, and monitors renewal and extension deadlines.