Beckham Law in Spain

We advise you on how to save tax if you move to Spanish territory and benefit from the special regime of the Beckham Law, which offers a beneficial tax regime for people who have not been tax residents in Spain in the last 5 years and under a set of requirements.

Benefits of the Beckham Law

We can help you with the necessary paperwork to obtain the tax benefits of the Beckham Act.

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Taxation at a flat rate of 24%.

Foreign workers and professional sportsmen and women who benefit from the Beckham Law can be taxed at a flat rate of 24% of their income in Spain, which is generally a lower rate than under conventional tax systems.

Foreign income tax exemption

Foreign workers under the Beckham Act are exempt from paying tax on their foreign earnings.

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 foreign workers to better plan their taxation in Spain and abroad, which can help them minimise their overall tax burden.

What is the Beckham Law?

The Beckham Law refers to the Special Regime for posted workers, the original name of the Beckham Law was passed in Spain to boost the national economy by attracting managers and qualified personnel from abroad. The Beckham Law is a law in Spain that allows highly qualified foreign workers and professional sportsmen and women to be taxed in Spain as non-residents for a maximum period of six years.

The incentive is that, by taking advantage of this regime, posted workers who change their tax residence to Spain would receive a tax reduction for personal income tax purposes. Specifically, it allowed them to be taxed as non-residents at the general rate of 24% instead of 43%.

Eligibility for the Beckham Law

First, the following conditions must be met:

  • Not have resided in Spain during the 10 years before the posting.
  • Have an employment contract in Spain and the employer must be a Spanish entity or a non-resident entity with a permanent establishment in Spain.
  • If you are a director of a Spanish company, you must hold less than 25% of the share capital.

To find out exactly whether you can benefit from the Special Regime for posted workers, as well as to look for the best tax optimisation alternatives, you can contact our tax advisors.