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From which amount is it worth asking to benefit for the Beckham Law?

We have already talked about the benefits of Beckham Law, but we have found out that a lot of people is asking from which amount is worth asking for this special tax regime. So here goes the answer:

 54.000€ if you live in Catalunya. Look at the attached table at the end of the article to see several examples. Let’s explain this a bit.

Particularities of the Special Displaced Workers Regime

When applying Beckham Law,  your tax rate is fixed at a 24% (for the first 600K) and then to 45%, but despite this can look like a good deal, there are some things to take into account:

  1. When applying this regime, you pay 24% of your gross income. No expenses are allowed.
  2. All your worldwide salaries are considered in Spain, so, you will pay 24% for those too, but considering the double taxation deduction applicable with some limits.
  3. Make sure you tell your employer that you have this benefit in order they apply the 24% withholding tax in your monthly payslips, in order to avoid paying when you fill in your Income Tax Form.
  4. Try to forecast your future wages, because it could be that you raise the 54.000 barrier in few years, and it would be late then to ask for Beckham Law. (you have 6 months form arrival to Spain to ask it for the next 5 years).
  5. With this regime you do not have to file Wealth Tax nor 720 Form and if you are under the resident tax regime you will have to.

DOWNLOAD TABLE

With all this, you need to analyze the pros and cons of this regime and decide if it suits your situation or not.

At GM TAX we will be delighted to help you through this process, do not hesitate to contact us.

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