Beckham Law: Spain's special tax regime

The Beckham Law—officially the Special Tax Regime for Inbound Workers—allows qualifying new residents to pay a flat 24% tax rate on Spanish-source income instead of the progressive rates up to 47%. Named after footballer David Beckham who benefited from it when joining Real Madrid, this regime can result in significant tax savings for high earners.

This guide explains how the Beckham Law works, who qualifies, and how to apply.

What is the Beckham Law?

The Beckham Law is a special tax regime that treats qualifying new residents as non-residents for tax purposes, even though they live in Spain. This means:

• Flat 24% tax on Spanish income (up to €600,000)
• Only Spanish-source income is taxed
• Foreign income and assets largely excluded
• Wealth tax exemptions on foreign assets
• Simpler tax filing

The regime lasts up to 6 tax years (the year of arrival plus 5 more), after which you transition to the standard resident tax system.

Standard vs Beckham Law taxation

The difference can be substantial for higher earners:

Income	Standard resident tax	Beckham Law
€50,000	~€12,000 (24%)	€12,000 (24%)
€100,000	~€30,000 (30%)	€24,000 (24%)
€200,000	~€75,000 (37.5%)	€48,000 (24%)
€300,000	~€120,000 (40%)	€72,000 (24%)
€600,000	~€260,000 (43%)	€144,000 (24%)

Above €600,000 of Spanish income, the rate increases to 47% even under Beckham Law.

Beyond income tax savings, the regime also exempts foreign assets from Spanish wealth tax—potentially saving thousands more annually.

Who qualifies for Beckham Law?

Eligibility requirements changed in 2023 under the new Startups Law. You must meet these criteria:

Residency requirement:

• Not been a Spanish tax resident for the past 5 years

Work requirement (one of the following):

• Employment contract with a Spanish company
• Company director of a Spanish company (with <25% ownership)
• Remote worker for foreign employer (new since 2023)
• Entrepreneur with innovative business activity
• Highly qualified professional providing services to startups

Relocation reason:

• Move to Spain specifically for work or economic activity
• Begin work within 12 months of becoming resident

Additional conditions:

• Income primarily from Spanish activities
• Not earning most income from a related permanent establishment

The 2023 changes expanded eligibility significantly, particularly for remote workers and entrepreneurs.

Remote workers and digital nomads

The 2023 reform specifically added remote workers to Beckham Law eligibility. You can now qualify if you:

• Work remotely for a foreign company
• Hold Spain’s digital nomad visa or other valid residency
• Haven’t been Spanish tax resident in the prior 5 years
• Meet the other standard requirements

This is significant because previously, the Beckham Law was essentially limited to those employed by Spanish companies. Now, digital nomads can potentially combine the Digital Nomad Visa with Beckham Law tax benefits.

Note that you must still pay tax on your work income—the benefit is the flat 24% rate rather than progressive rates up to 47%.

What income is taxed?

Under the Beckham Law regime:

Taxed at 24%:

• Salary from Spanish employment
• Director fees from Spanish companies
• Income from work performed in Spain
• Spanish rental income
• Spanish capital gains

Income taxed at source (varies):

• Spanish dividends: 19%
• Spanish interest: 19%
• Spanish capital gains from sales: 19-23%

Not taxed in Spain:

• Foreign employment income (for work outside Spain)
• Foreign dividends and interest
• Foreign rental income
• Foreign capital gains
• Inheritance from abroad

The key advantage is that worldwide income outside Spain is generally not taxable, unlike standard Spanish residents who face worldwide taxation.

Wealth tax implications

Standard Spanish residents pay wealth tax on worldwide assets above €700,000 (threshold varies by region). Under the Beckham Law:

• Only Spanish-located assets count toward wealth tax
• Foreign bank accounts, investments, property excluded
• Significant savings for those with substantial foreign assets

For someone with €2 million in foreign investments and €500,000 in Spanish property, this could mean zero wealth tax instead of thousands annually.

How to apply

The application process:

Timing:

• Apply within 6 months of registering with Spanish Social Security
• Registration triggers when you start work or self-employment
• Missing the deadline forfeits eligibility permanently

Application steps:

1. Obtain your NIE (foreigner identification number)
2. Register with Social Security through your employer
3. File Form 149 (option election) with the tax authority
4. Receive confirmation of acceptance

Required documents:

• Form 149 completed
• NIE certificate
• Passport copy
• Employment contract or company documentation
• Proof of Social Security registration
• Rental contract or property deed showing Spanish residence

Where to apply:

• Submit to your local tax office (Agencia Tributaria)
• Online submission possible with digital certificate

The tax authority may request additional documentation to verify eligibility. Work with a tax advisor experienced in Beckham Law applications.

Tax filing under Beckham Law

Once accepted, your tax obligations change:

Annual filing:

• File using Form 151 (non-resident model) instead of standard Form 100
• Filing deadline: June 30 (for prior year)
• Quarterly declarations not typically required for employees

What to declare:

• Spanish-source income only
• Foreign income not reported (except for solidarity tax on very high amounts)

Assets reporting:

• Form 720 (foreign assets declaration) still required if thresholds met
• But these assets not included in wealth tax calculation

The simpler filing requirements are another benefit—you’re not tracking and reporting worldwide income to Spanish authorities.

Potential drawbacks

The Beckham Law isn’t right for everyone:

Treaty limitations: Some tax treaties don’t recognize the Beckham Law regime. You might face issues with:

• Countries taxing worldwide income of their citizens (like the US)
• Countries with specific treaty provisions on employment income
• Double taxation in certain scenarios

Limited duration: The regime lasts maximum 6 years. After that, you become a standard tax resident with worldwide taxation. Plan your exit strategy.

Lower earners: If your income is below €60,000 or so, the standard progressive tax may actually be comparable or lower than the flat 24%.

Pension implications: Some pension contributions and deductions aren’t available under the special regime.

Complexity: Applying incorrectly or missing deadlines can be costly. Professional advice is essential.

US citizens and Beckham Law

US citizens face special complications because the US taxes worldwide income regardless of residence:

• You’ll still file US taxes and report your Spanish income
• Foreign tax credits reduce US tax by Spanish tax paid
• Beckham Law’s lower rate means less credit against US tax
• Net savings may be less than for non-US citizens

American citizens should work with tax advisors experienced in both US and Spanish tax to model actual savings.

After Beckham Law expires

When your 6 years end, you become a standard Spanish tax resident:

• Worldwide income becomes taxable
• Progressive rates up to 47% apply
• Wealth tax on worldwide assets
• Form 720 assets reporting with potential tax implications

Some people choose to leave Spain before the transition. Others restructure their affairs to minimize the impact. Plan 1-2 years ahead for this transition.

Is Beckham Law right for you?

Consider the Beckham Law if:

• You earn over €60,000 annually from Spanish sources
• You have significant foreign assets
• You haven’t been a Spanish tax resident recently
• You’re employed by a Spanish company or working remotely

Standard taxation may be better if:

• Your income is relatively modest
• Most of your income comes from foreign sources anyway
• You plan to stay in Spain indefinitely
• Tax treaty complications apply

Run the numbers with a qualified tax advisor before deciding. The application is irrevocable—once you choose the Beckham Law, you cannot switch back to standard taxation mid-period.

Getting professional help

The Beckham Law has nuances and pitfalls. Professional advice is strongly recommended:

• Tax advisors (asesores fiscales) – For application and ongoing compliance
• Immigration lawyers – For coordinating visa and tax strategy
• International tax specialists – For cross-border situations

Expect to pay €500-2,000 for initial Beckham Law application assistance, plus ongoing annual tax preparation fees.

Summary

The Beckham Law offers significant tax savings for qualifying new residents—a flat 24% rate versus up to 47%, plus exclusion of foreign income and wealth from Spanish taxation. The 2023 reforms expanded eligibility to include remote workers and entrepreneurs.

Apply within 6 months of starting work in Spain. The regime lasts up to 6 years. Given the complexity and the irrevocable nature of the election, work with experienced tax professionals to determine if it’s right for your situation.