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Beckham Law in Spain

We advise you on how to save taxes if you move to Spanish territory and take advantage of the special regime of the Beckham Law, which offers a beneficial tax framework.

We can help you with the necessary procedures to obtain the tax benefits of the Beckham Law.

Below, we explain what the Beckham Law entails and who can currently benefit from it

What is Beckham’s Law?

The Beckham Law, also known as the Special Regime for Relocated Workers, is a tax legislation passed in Spain in 2004 with the aim of boosting the national economy by attracting executives, skilled foreign professionals, and professional athletes. This law allows highly qualified foreign workers, as well as individuals relocating to Spain to serve as company directors or self-employed professionals (under certain conditions), to be taxed as non-residents in Spain for a maximum period of six years. The law takes its name from the famous English footballer David Beckham, who was one of the first to benefit from this special regime.

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    Taxation at a fixed rate of 24%

    Beneficiaries of the Beckham Law can be taxed at a fixed rate of 24% on their general income (including income from employment, economic activities, and real estate income) up to a maximum of €600,000, and at 47% on income exceeding this threshold. This is typically a lower rate than what conventional tax systems apply at higher income levels. Other types of income (such as interest, dividends, and capital gains) are taxed at the same rates as residents — between 19% and 28% — but only on income from Spanish sources, not from abroad.

    Exemption from Foreign Income Taxes

    Beneficiaries of the Beckham Law are exempt from paying taxes on their foreign income, except for income from employment and economic activities, which are taxed on their worldwide income.

    Reduced Taxation Period

    Foreign workers can be taxed as non-residents for a maximum period of six years, which can result in significant tax savings.

    Greater Flexibility for Tax Planning

    The Beckham Law allows its beneficiaries to better plan their taxation in Spain and abroad, which can help minimise their overall tax burden.

    Requirements to Opt for the Beckham Law

    To benefit from this special regime, the following requirements must be met:
    FIRST: Tax Residency: The taxpayer must not have been a tax resident in Spain in the five years prior to their relocation (previously, it was ten years).

    SECOND: The relocation to Spanish territory must be for one of the following reasons:

    • Workers:
      • A) Employment Contract: As a result of an employment contract or a relocation order from the employer.
      • B) Remote Work: Working remotely from Spain at the taxpayer’s discretion, using IT, telecommunication, and telematic tools (remote work). In this case, two scenarios are distinguished:
    • Third-Country Workers: They must hold an international remote work visa (digital nomad visa).
    • European Union Workers: They do not need to obtain any additional permits or meet further requirements at the moment.
    • Company Directors: The reason for the relocation to Spanish territory is to serve as a company director. They can apply for this regime regardless of their shareholding in the company, except in the case of a holding entity, where the shareholding cannot exceed 25%.
    • Professionals:
      • Entrepreneurial Activity: Engaging in an economic activity in Spain classified as entrepreneurial. A positive report from ENISA is required.
      • Highly Qualified Professionals: Professionals providing services to emerging companies (with a positive report from ENISA) or engaging in activities related to training, research, development, and innovation in Spain. Their remuneration must represent more than 40% of their total income.

    THIRD: They must not obtain income deemed to come from a Permanent Establishment in Spain.

    Filing of Form 151

    Form 151 is filed annually, typically coinciding with the filing period for the Personal Income Tax (IRPF). For beneficiaries of the Special Regime for Relocated Workers, known as the Beckham Law:

    Filing Period: The declaration must be filed between April and June 30 of the year following the fiscal year being declared. For example, to declare income for the year 2023, the filing period is from April 6 to July 1, 2024.

    You can choose to file the tax return yourself or with the assistance of a tax advisor:

    Individual Filing: If you decide to file the return on your own, you can do so through the Spanish Tax Agency’s website. As a relocated employee under the Beckham Law regime, you must enter all your data without relying on a pre-filled draft. This includes declaring your income, tax withholdings, and deductions for donations or taxes paid abroad.

    Professional Advice: You can also seek the help of a tax advisor to prepare and submit your return. This is especially recommended if you are not fluent in Spanish or if you have multiple sources of income. Hiring an advisor can save you time and help avoid potential errors.

    To determine whether you are eligible for the Special Regime for Relocated Workers and to explore the best tax optimisation strategies, you can contact our tax advisors.