Beckham Law: Special Tax Regime

What is the Beckham Law?

The Beckham Law (officially Régimen Especial de Trabajadores Desplazados, or Special Regime for Displaced Workers) lets qualifying new residents in Spain elect to be taxed as non-residents for up to 6 years.

Named after footballer David Beckham who used it when joining Real Madrid, it offers a flat 24% tax rate on Spanish income instead of progressive rates that can reach 47%.

Under this regime, only Spanish-sourced income is taxed - foreign income (except from countries without tax treaties) is generally exempt from Spanish tax.

Key Benefits

Flat 24% tax rate: On employment income up to €600,000 (amounts above are taxed at 47%).

No worldwide taxation: Unlike regular residents, you're only taxed on Spanish-sourced income.

No wealth tax: Beckham Law participants are generally exempt from Spanish wealth tax on foreign assets.

No Modelo 720: You don't need to file the overseas assets declaration that regular residents must submit.

Eligibility Requirements

You must not have been a Spanish tax resident in the previous 5 tax years.

Your move to Spain must be due to an employment contract with a Spanish company, or you're becoming a company director (with conditions), or starting certain professional/entrepreneurial activities.

Recent reforms have expanded eligibility to include remote workers for foreign employers and digital nomads under certain conditions.

How to Apply

You must apply within 6 months of registering with Spanish Social Security or starting economic activity.

File Modelo 149 with the Agencia Tributaria, including your employment contract and proof that you weren't a Spanish resident in the previous 5 years.

Once approved, file annual returns using Modelo 151 instead of the regular Modelo 100.

Limitations to Consider

Capital gains on Spanish assets are taxed at normal non-resident rates (19%/24%), not the flat employment rate.

You cannot claim the same deductions available to regular residents (mortgage interest, pension contributions, etc.).

Dividends and other investment income may be subject to different rates depending on source country.

The regime lasts for the year of arrival plus 5 more years - after that, you become a regular resident taxpayer.

Is It Right for You?

The Beckham Law is most beneficial for high earners whose Spanish income would otherwise be taxed at 45%+ under normal rules.

If you have substantial foreign income or assets, the exclusion from worldwide taxation can be very valuable.

However, if your income is moderate or you have significant deductions available (mortgage, pension contributions), normal resident status might be better.

Consult with a tax professional before deciding - once you elect into the regime, you cannot change until the 6 years expire.