If you’re considering moving to Spain for work, you may have come across the term “Beckham Law”. Officially known as the Special Expatriate Tax Regime, this tax scheme allows foreign workers to benefit from a significantly reduced tax rate on their income in Spain. It’s a popular option among professionals, entrepreneurs and high-net-worth individuals relocating to the country.
In this guide, we’ll explain what the Beckham Law is, who can apply, and how it works in practice.
What is the Beckham Law?
The Beckham Law was introduced in 2005 to attract foreign talent and investment to Spain. It gets its nickname from footballer David Beckham, one of the first high-profile individuals to benefit from it when he signed for Real Madrid.
This tax regime allows qualifying foreign workers to pay a flat tax rate of 24% on their Spanish-sourced income, up to €600,000 per year, for a period of six years. Above this threshold, the rate increases to 47%.
One of its biggest advantages is that foreign income (such as investments or property abroad) is generally not taxed in Spain under this scheme.
Who can benefit from the Beckham Law?
To qualify for the Beckham Law, you must meet the following eligibility criteria:
- You must not have been a Spanish tax resident in the five years prior to your move.
- You must have a job offer or a work contract from a Spanish company, or relocate to Spain as a company director.
- You must carry out most of your professional activity within Spain.
- Your employer must register you with the Spanish Social Security system.
Since 2023, self-employed professionals (autónomos) and some remote workers can also benefit from the scheme, provided they meet certain conditions.
How the Beckham Law works in practice
Here’s how the regime functions once your application is approved:
- Fixed tax rate: You pay a flat 24% on income earned in Spain, up to €600,000.
- Exemption on foreign income: You don’t pay Spanish tax on most of your income earned outside Spain.
- Time limit: The regime lasts for six consecutive tax years.
- Tax residency: You are still considered a Spanish tax resident, but under special rules.
For example, if you earn €300,000 per year in Spain, you’ll pay 24% tax on that amount — often less than the standard progressive rates, which can reach up to 47% for high earners.
How to apply for the Beckham Law
The process must be started within six months of registering with Spanish Social Security.
Steps to follow:
- Relocate and register as an employee or self-employed worker in Spain.
- Obtain a NIE (Número de Identificación de Extranjero).
- Register with Social Security.
- Submit Form 149 to the Spanish Tax Agency (Agencia Tributaria).
- Once approved, file your annual tax return using Form 151.
Most applicants work with a tax advisor to ensure the process runs smoothly and deadlines are met.
Advantages and considerations
Advantages
- Lower tax rate compared to the standard progressive scale.
- No taxation on most foreign income.
- Fixed, predictable tax liabilities for six years.
- Attractive for professionals, executives and athletes.
Considerations
- You cannot deduct personal expenses or allowances like regular residents.
- If your foreign income is taxed abroad, double taxation agreements may apply.
- You must meet all criteria strictly — otherwise, you’ll lose the benefits.
Beckham Law and digital nomads
With Spain’s Digital Nomad Visa, many remote workers can now combine residency with the Beckham Law, provided they meet the requirements. This makes Spain one of Europe’s most tax-friendly destinations for remote professionals.
Making the most of the Beckham Law
The Beckham Law offers significant tax advantages for foreigners moving to Spain, making it an appealing option for skilled workers, executives and digital nomads. However, the application process can be complex, so it’s wise to seek professional tax advice to ensure you qualify and comply with all legal requirements.
Key takeaways
- Flat 24% tax on Spanish income up to €600,000.
- Exemption on foreign income for six years.
- Available to employees, directors and some self-employed workers.
- Application must be made within six months of arrival.
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