Beckham Law in Spain
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What is Beckham Law in Spain?
The Beckham Law, officially known as Spain’s Special Regime for Inbound Taxpayers, is a favorable tax regime designed to attract foreign professionals to work in Spain. Initially introduced in 2005, the law allows eligible expats to be taxed only on their Spanish-sourced income at a reduced flat rate, rather than on their worldwide income.
Its name comes from football legend David Beckham, who transferred to Real Madrid just before the law was implemented. Although he didn’t directly benefit from the regime, the timing and intention behind the law led to its popular nickname.
What is the purpose of the Beckham Law?
Spain introduced the Beckham Law to make the country more competitive in attracting international talent. The primary goal was to bring in highly skilled foreign workers—especially in fields like sports, finance, and tech—by offering significant tax incentives.
By easing the tax burden for expats, the Spanish government hoped to stimulate the economy and strengthen the country’s global workforce.
Who can benefit from the Beckham Law?
The Beckham Law is open to individuals who:
Move to Spain because of a new employment contract or intra-company transfer.
Have not been Spanish tax residents for the past 5 years.
Apply for the regime within 6 months of registering with Spanish Social Security.
Do not earn income through self-employment or act as directors of companies with major shareholding (exceptions apply in some cases).
Who Qualifies for the Beckham Law in Spain?
To benefit from the Beckham Law in Spain, individuals must meet specific eligibility requirements designed to attract foreign professionals and skilled workers. Here’s what qualifies you for this tax exemption:
Non-residency in recent years: You must not have been considered a Spanish tax resident for at least the five years prior to relocating to Spain.
Employment-based relocation: Your move must be for work purposes either through a Spanish employment contract, a transfer from a foreign employer, a digital nomad visa, or as a company director holding less than 25% of the company’s shares.
Primary work activity in Spain: At least 85% of your total income should come from work performed in Spain. Only a limited portion of professional activities may be carried out abroad.
Family inclusion: Spouses, dependent children, or other family members who relocate to Spain within the first year of your application may also apply under the same conditions.
Who Doesn’t Qualify
You cannot apply for the Beckham Law if you are:
A professional athlete
Self-employed, unless you hold a Spanish digital nomad visa
A company director owning more than 25% of the organization’s shares
The Beckham Law offers significant tax advantages, but strict adherence to these criteria is essential to maintain eligibility.
How are Beckham Law beneficiaries taxed?
Under this special regime:
Only Spanish-source income is taxed in Spain.
A flat rate of 24% applies to income up to €600,000.
Income above €600,000 is taxed at 47%.
No tax is owed in Spain on foreign income, including dividends, interest, or rental income abroad (as long as it’s not connected to Spanish sources).
What additional tax benefits does the Beckham Law offer?
Exemption from wealth tax on foreign assets.
No reporting obligation for overseas holdings (Form 720), which regular residents must submit.
Possibility to benefit from double tax treaties Spain holds with other countries, avoiding double taxation.
How long can the Beckham Law be applied?
The regime applies for six consecutive tax years:
The year you become a tax resident in Spain, and
The next five years.
There is no extension beyond this period. After six years, you’ll be subject to standard Spanish tax rules.
What happens once the 6-year period under the Beckham Law ends?
Once your eligibility expires:
You are automatically transitioned to full Spanish tax residency.
You will be taxed on your global income, including foreign earnings.
You’ll also be required to report assets held abroad and may become liable for wealth tax on worldwide assets.
How do you apply for the Beckham Law regime?
To access the Beckham Law benefits, a formal application must be submitted to the Spanish Tax Agency (Agencia Tributaria).
What documents do I need?
Your employment contract or transfer letter.
Proof of registration with Spanish Social Security.
A copy of your passport or national ID.
Completed Form 149 (for application).
How to apply?
Register with Spanish Social Security.
Submit Form 149 to the tax office within 6 months of the start date of your employment.
Wait for approval and confirmation from the tax authorities.
How long will it take to receive a resolution?
Once submitted, the resolution typically arrives within 10 to 12 weeks. If approved, you’ll receive confirmation of your inclusion under the special tax regime.
How do I file my annual income tax return?
As a Beckham Law beneficiary, you must file your tax return using Form 151, instead of the standard Form 100 used by ordinary residents. This must be submitted during the annual tax filing window, usually between April and June of the following year.
You are only required to report Spanish-source income.
What are the limitations of the Beckham Law?
While attractive, the Beckham Law comes with limitations:
Self-employed professionals are not eligible.
It does not cover capital gains from foreign assets if deemed to have a Spanish source.
No extensions beyond six years are allowed.
If your job ends or you leave Spain, the benefits are lost.
You must remain a tax resident in Spain during the application period.
What happens if I don’t meet the requirements of the Beckham Law?
Failure to meet any of the eligibility conditions—such as not submitting Form 149 on time—will disqualify you from the regime. In such cases, you’ll be taxed under regular Spanish tax rules from the beginning.
Can the Beckham Law be waived?
Yes, you may choose to waive the Beckham Law voluntarily. This might happen if you have substantial foreign income and prefer to utilize tax treaties or other tax planning strategies.
What are the consequences of waiving the Beckham Law?
Once waived:
The decision is irreversible.
You become a standard Spanish tax resident.
You must report and pay taxes on worldwide income.
You lose the flat tax rate and exemptions from wealth tax on foreign assets.
FAQs about the Beckham Law in Spain
1. What is the Beckham Law in Spain?
The Beckham Law is a Spanish tax regime designed to attract foreign professionals. It allows eligible expats to pay taxes only on income earned in Spain while benefiting from a reduced flat tax rate on that income.
2. Who can apply for the Beckham Law?
Foreign workers who move to Spain for employment or business purposes may qualify, provided they haven’t been Spanish tax residents in the past five years and meet the employment-related requirements.
3. How long does the Beckham Law tax benefit last?
The special tax regime typically applies for six consecutive years, starting from the year you become a Spanish tax resident.
4. What is the tax rate under the Beckham Law?
Qualifying individuals are usually taxed at a flat rate of 24% on Spanish-sourced income up to a specific threshold, instead of the progressive rates that can exceed 45% for residents.
5. Can self-employed individuals qualify for the Beckham Law?
Generally, self-employed professionals are not eligible unless they hold a Spanish digital nomad visa, which provides an exception under recent tax reforms.
6. Are family members covered by the Beckham Law?
Yes. A spouse, children, or other dependents who relocate to Spain with the main applicant within the first year may also benefit if they meet the required conditions.
7. What type of income is exempt under the Beckham Law?
Only Spanish-sourced employment income is taxed under this regime. Income generated from abroad (like foreign investments or overseas salaries) is exempt from Spanish taxation.
8. What happens if I change jobs while under the Beckham Law?
You can usually retain the benefit if you switch to another eligible Spanish employer, but you must notify the tax authorities and meet all ongoing compliance rules.
9. Can I apply for the Beckham Law after moving to Spain?
Yes, but you must submit your application within six months of registering with Spanish Social Security or starting your employment contract.
10. What are the disadvantages of the Beckham Law?
While it offers lower taxes, you can’t claim certain resident tax deductions or benefits, and you remain liable for Spanish tax on your domestic income only.
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Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.