Beckham Law Spain: Special Tax Regime Guide

The Beckham Law is a special tax regime that allows certain foreign workers in Spain to pay tax as non-residents, potentially saving thousands in taxes. This guide explains everything you need to know.

What is the Beckham Law?

The Beckham Law (Régimen Especial de Trabajadores Desplazados) is a tax regime that:

• Allows you to pay tax as a non-resident even while living in Spain
• Named after footballer David Beckham who used it in 2005
• Officially called "Special Tax Regime for Displaced Workers"
• Applies flat 24% tax on Spanish income up to €600,000
• Foreign income tax-exempt in Spain

Who is Eligible?

You can apply for Beckham Law if you:

• Haven't been a Spanish tax resident in the previous 5 years
• Move to Spain for work:
  • Employment contract with Spanish company, or
  • Become director of Spanish company, or
  • Remote worker for foreign company (since 2023), or
  • Highly qualified professional
• Work doesn't derive from previous relationship with Spanish company
• Apply within 6 months of starting work in Spain

Tax Benefits Explained

Standard tax vs Beckham Law:

Key benefits:

• Flat 24% rate on Spanish employment income up to €600,000
• 47% rate on income above €600,000 (vs progressive rates)
• Foreign income exempt: Dividends, interest, rental income abroad not taxed in Spain
• No wealth tax on foreign assets
• Simpler tax filing

Disadvantages:

• Can't claim most deductions (mortgage, pension contributions)
• Not beneficial for lower incomes (under €60,000)
• Foreign income may be taxed in home country

How to Apply

To apply for Beckham Law:

1. Move to Spain and start working
2. Gather documents:
   • Employment contract or company director appointment
   • Proof you weren't Spanish tax resident last 5 years
   • NIE
   • Passport
3. Complete Modelo 149 (application form)
4. Submit within 6 months of:
   • Starting work in Spain, or
   • Becoming tax resident
5. Wait for approval (usually 3-6 months)
6. Applies retroactively from start of tax year

Recommended to use a tax advisor (gestoría) for application.

Duration and Renewal

Beckham Law duration:

• Valid for 6 tax years:
  • Year you become tax resident
  • Plus 5 following years
• Cannot be renewed or extended
• After expiration, revert to standard tax resident rates
• Cannot apply again even if you leave and return

Is It Worth It?

Beckham Law is beneficial if you:

• Earn over €60,000 in Spain
• Have significant foreign income (dividends, rental, investments)
• Have foreign assets (avoid wealth tax)
• Plan to stay in Spain medium-term (not just 1-2 years)

Not worth it if you:

• Earn under €60,000
• Have no foreign income
• Want to claim mortgage or pension deductions
• Plan very long-term stay (benefits end after 6 years)

Always consult a tax advisor to calculate your specific situation.