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2023 Changes to the Beckham Law in Spain: What You Need to Know

The Beckham law in Spain provides a unique tax advantage to foreigners in Spain. Rather than paying a progressive tax on their worldwide income (ranging from 19% to 45%), these individuals are eligible to pay a flat fee of 24% on the income they earn within Spain. This special tax regime has proven to be a financial advantage for expats, reducing the amount of tax they pay significantly. The law applies to all employees who reside abroad but wish to work in Spain, allowing them to pay taxes as non-residents for the first 6 years of their stay.

Overview of the 2023 changes:

  1. Reduced Non-Residence Requirement: The period of non-residence in Spain prior to obtaining tax benefits under the Beckham Law has been reduced from 10 years to 5 years.
  2. Expatriation Timing: The expatriation or relocation for the purpose of obtaining tax benefits under the Beckham Law may occur either in the first year of application or in the previous year.
  3. Telework Eligibility: Remote work activity, also known as telework, is now eligible for tax benefits under the Beckham Law. This means that individuals who use computers, telematics, and telecommunications systems for their job may now apply for tax benefits.
  4. Holding/Property Company Requirements: If the applicant’s company has the status of a holding or property company, a participation of less than 25% of the share capital is now required.
  5. Entrepreneurial Activity: The Beckham Law now applies to individuals who plan to carry out an economic activity qualified as an entrepreneurial activity.
  6. Professional Services and Training: Individuals who perform a highly-qualified professional activity, such as providing services to companies or conducting training activities, may now apply for tax benefits under the Beckham Law.
  7. Spouse and Children Tax Benefits: The special tax regime for spouses and children accompanying the applicant has been extended. This includes children under 25 (or any age if they have a disability).

How to apply 

It is important to note that the application needs to be submitted within 6 months starting from the date of the inscription in the Social Security Administration as an employee for the Spanish company; a late register will result in an automatic denial. To start benefiting from this regime, the expatriate must inform the Spanish tax agency (“Hacienda”) by filling out Model 149.

The form needs to include also the following documents from the employee:

  • Passport and NIE number
  • Social security number
  • Job contract

It is important to note that every year, from April to June, individuals who are eligible for the Beckham Law must file their Income Tax Return using Model 151.

How can we help you?

Do you have any questions about the Beckham Law or do you need assistance with your application? Our HR experts in Spain are happy to support and schedule a call!

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