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The Beckham Law:
Spain's Special Tax Regime for New Residents
A Flat Rate for Your First Six Years in Spain
The Beckham Law is the popular name for Spain’s special tax regime for people who move to the country to work. It owes the nickname to David Beckham, one of the first well-known people to benefit from it after joining Real Madrid in 2003. Its official name is the special regime for workers, professionals, entrepreneurs and investors posted to Spain, regulated in Article 93 of the Personal Income Tax Law.
For the right person it can reduce the tax bill considerably during the first six years in Spain. For the wrong person, it can cost more than the normal system. And it has a strict deadline that many people miss.
How the Regime Works
Under the regime you are tax resident in Spain, but you are taxed largely as if you were not. In practice:
- Employment income is taxed at a flat 24% up to €600,000 a year, and 47% above that.
- Most income from outside Spain, such as foreign dividends, interest or rents, is not taxed in Spain.
- Spanish savings income, such as dividends and capital gains, is taxed at 19% to 28%.
- Wealth tax applies only to assets located in Spain.
- You are not required to file the Modelo 720 declaration of assets abroad.
The regime lasts for the year in which you become resident and the following five years.
Who Qualifies
- You must not have been tax resident in Spain in the five years before moving.
- You must move to Spain because of a qualifying reason. an employment contract with a Spanish employer or a posting by your employer; becoming a director of a company (with limits on your shareholding in companies that mainly hold assets); working remotely under the digital nomad visa; carrying out an innovative business activity as an entrepreneur; or working as a highly qualified professional for a startup or in research and development.
- You must not obtain income through a permanent establishment in Spain, except in the case of entrepreneurs.
Since 2023, your spouse and children under 25 can also benefit from the regime, under certain conditions.
The Six-Month Deadline
When It Is Not Worth It
Moderate salaries
Spain's normal progressive rates start well below 24%, and with personal allowances the normal system can produce a lower bill. It needs calculating case by case.
Families with deductions
The regime does not apply the personal and family allowances of the normal system.
International situations
Some countries do not accept the tax residence certificate of someone under this regime when applying a double tax treaty, which can lead to paying tax twice.
The regime is also limited in time. After six years you move to the normal system, so a long-term move should be planned with both stages in mind.
The Beckham Law and Your Property
Buying a home in Spain does not affect the regime. If you rent out a Spanish property, the rental income is taxed under the regime’s rules, and only your Spanish assets count towards wealth tax.
Get Your First Consultation for FREE!
Moving to Spain for work? Your first consultation is free. We will tell you whether the Beckham regime makes sense for you before the deadline starts running.
How We Help
- Checking whether you qualify, and whether the regime is actually worthwhile in your case.
- Filing the Modelo 149 within the deadline.
- Your annual tax returns under the regime, and the transition to the normal system afterwards.
Frequently Asked Questions About the Beckham Law
Can retirees apply for the Beckham Law?
No. The regime requires moving to Spain for a qualifying working or business reason. Retirees are taxed under the normal system.
Can I apply if I already live in Spain?
Only if you were not tax resident in Spain in the previous five years and you have just started a qualifying activity. The six-month deadline runs from your registration with Social Security.
Does it apply to digital nomads?
Yes. Since 2023, people who move to Spain to work remotely under the digital nomad visa can request it.
What happens after six years?
You move to the normal tax system and are taxed on your worldwide income at the general progressive rates.
Can my family benefit too?
Since 2023, your spouse and children under 25 can also be included, under certain conditions.