Beckham Law Spain: What is the Beckham Law? – Parakar
What is the Beckham Law in Spain?
The Beckham Law in Spain, also known as the special tax regime for posted workers (or “Beckham Regime Spain”), was introduced in 2005 to attract foreign talent. It offers expats the opportunity to be taxed as non-residents, even while living and working in Spain.
Under the Beckham Law Spain, individuals can benefit from a flat tax rate of 24% on employment income up to €600,000 for a period of six years. This contrasts with Spain’s progressive personal income tax (IRPF), which ranges from 19% to 47%.
For income exceeding €600,000, the regular tax rate of 47% applies again, but this special regime remains a popular tax benefit for expats, especially international employees and remote workers relocating to Spain.
What is Beckham Law in Spain: How does it work?
To put it simply, the Beckham tax law Spain allows qualifying employees to pay a lower tax rate while living in Spain. Rather than paying the normal progressive tax, they can opt into the Beckham’s Law Spain and pay just 24% on most of their income.
It’s important to know that the 24% rate only applies to income earned in Spain through employment. Other types of income, like rental or investment income, may still be taxed differently.
This rule is commonly referred to as the Beckham Law Spain, but also appears under names like Beckhams law or Beckham regime Spain.
No matter what you call it, it offers a clear tax incentive for professionals relocating to Spain.
Who qualifies for the Beckham Law?
To benefit from the Beckhams Law, you’ll need to meet a few key requirements. Here’s what you must have in place:
- You must not have been a tax resident in Spain for the five years prior to moving.
- You must relocate to Spain for work purposes (e.g. with a job offer, intra-company transfer, or digital nomad visa).
- You must apply for the regime within six months of registering with the Spanish Social Security.
- Your work must be primarily carried out in Spain, max 15% of work can be conducted abroad.
- If you’re a director, you must own less than 25% of the company unless applying via a startup or entrepreneur visa.
This regime also extends to family members: your spouse, children under 25, and dependent parents can be included if they move with you in the first year.
Documents needed to apply
To apply for the Beckham Law Spain, the following documents are required:
- Passport and NIE number
- Spanish Social Security number
- Employment contract (Spanish or foreign employer)
Once submitted, the Tax Agency will review your request and determine whether you are eligible to apply the Beckham Law.
Who cannot apply for Beckham’s Law?
While the Beckhams Law Spain is a strong tax benefit for many, it’s not for everyone. You are not eligible if you fall into any of these categories:
- Freelancers or self-employed individuals, unless you have a digital nomad visa.
- Athletes or professional sportspeople, the law is no longer available to this group.
- Company directors who own more than 25% of the business (unless they qualify under a startup/entrepreneur scheme).
So if you’re a startup founder with a minor stake, you could still benefit, but if you fully own your business, you may need to explore other tax options.
Why is it called the Beckham Law?
The law was nicknamed after footballer David Beckham, who famously benefited from it when he joined Real Madrid. At the time, the rule helped attract foreign football players, but the Beckham rule Spain has since been revised and is now focused on business professionals and remote workers.
Spain Beckham Law: Is it right for you?
Whether you’re relocating for a job, expanding your company, or moving to Spain with a digital nomad visa, the Beckhams Law offers significant tax advantages. However, the application process can be complex, and timing is essential.
Parakar’s local experts are here to help you evaluate if the Beckham Law Spain is the right fit for your situation and to guide you through every step of the application process.
Need help applying for the Beckham Rule Spain?
Let us support you. Our team in Spain is ready to help with:
- Checking your eligibility
- Gathering and submitting documentation
- Complying with deadlines
- Understanding how the Beckham’s Law Spain applies to your specific case
Get in touch and we’ll help you make the most of your time, and taxes, in Spain.
While the Beckham Law in Spain opens the door to tax advantages for many expatriates, there are specific exclusions to be aware of. The following groups are not eligible to apply for the Beckham’s Law regime:
- Freelancers or self-employed individuals, with the exception of those possessing a digital nomad visa.
- Sports professionals, including athletes, irrespective of their income level or status within their respective fields.
- Directors who have an ownership stake exceeding 25% in Spanish companies, unless they qualify and apply under a startup or entrepreneur visa program.
