The Beckham Law, officially known as the Special Expatriate Tax Regime, is a tax incentive introduced in Spain that allows foreign workers relocating to Spain to pay a flat tax rate of 24% on their Spanish-sourced income for up to six years, instead of the progressive tax rates applicable to Spanish tax residents. It was originally designed to attract top talent and foreign workers to Spain. workers to Spain.

To qualify for the Beckham Law, the following conditions must be met:

• The individual must not have been a tax resident in Spain for the 5 years prior to the application.

• The movement to Spain must be due to:
  • An employment contract with a Spanish company or for a position in Spain with a foreign employer through an assignment letter. It is also possible to move for working remotely with a foreign employer, if the individual can get the Spanish Digital Nomad Visa.
  • The acquisition of the condition of administrator of an entity, regardless of its participation (only for patrimonial entities, the participation must not reach 25% of the equity of the entity).
  • The performance in Spain of an economic activity qualified as entrepreneurial (innovative and/or of special economic interest for Spain).
  • The performance in Spain of an economic activity by a highly qualified professional who provides services to emerging companies.

• The applicant must not earn income through a permanent establishment in
  Spain (i.e., self-employed business).

The Beckham Law applies for a period of six years, since the first year of the tax residency status acquisition, which can include, or not, the year of arrival in Spain.

Under the Beckham Law, eligible individuals pay a flat 24% tax rate on income earned in Spain, up to €600,000. Any income exceeding €600,000 is taxed at 47%. Non-Spanish sourced income, such as foreign investments or property, is not subject to Spanish taxation under this regime, although this may change depending on certain circumstances.

No, professional athletes are no longer eligible for the Beckham Law. This change was made in 2015 following controversy around its use by high-profile athletes, including football players.

The Beckham Law applies only to Spanish source income with the exception of employment income which would be taxed on a worldwide basis and, in its case, it would be possible to apply a tax credit if taxation on a third country arises regarding such employment income.

To apply for the Beckham Law, you must submit a formal request to the Spanish tax authorities (Agencia Tributaria) within six months of registering for Social Security in Spain. The process requires submitting Form 149, and you may need assistance from a tax professional to ensure that the application is correctly completed.

Yes, you can lose eligibility for the Beckham Law if you:

• Leave Spain or cease employment in Spain.
• Fail to comply with Spanish tax regulations.
• Exceed certain income thresholds for activities not related to your employment contract.

Under the Beckham Law, only your Spanish-sourced income is subject to Spanish taxes. However, depending on your home country’s tax regulations, you may still be liable for taxes in your country of origin. Consulting a tax advisor is recommended to manage international tax obligations effectively.

No, the Beckham Law cannot be renewed after the six-year period. Once the regime ends, you will be taxed as a regular resident in Spain, subject to the progressive tax rates on worldwide income.