Beckham Law: Tax Advantages for Expatriates and Professionals in Spain
What Is the Beckham Law? Key Tax Advantages for Working in Spain.
The Beckham Law is a special tax regime designed for employees who move their tax residence to Spain for work-related reasons. It allows them to be taxed as non-residents, offering fiscal benefits that can be highly attractive for professionals relocating to Spain.
Main Benefits
| Advantage | Key Details |
| Flat tax rate of 24% up to €600,000 (47% on the excess) | Permite tributar a un tipo fijo en lugar del progresivo del IRPF. Lo que exceda tributa al 47 % |
| Taxation only on Spanish income and earnings | Foreign employment income is excluded from taxation in Spain |
| Wealth tax limited to assets located in Spain | Only assets situated in Spain are subject to wealth tax |
| No obligation to file Form 720 | Assets and income abroad are taxed in the country of origin |
Requirements to Qualify for the Regime
To benefit from the Beckham Law, the following conditions must be met:
- Not having been a tax resident in Spain in the last five years.
- Staying in Spain for more than 183 days during the fiscal year.
- The move must be a result of an employment contract in Spain, or ordered by the employer.
- The taxpayer must not obtain income through a permanent establishment in Spain.
- The application must be submitted within six months from registration in the Spanish Social Security system (or equivalent documentation proving maintenance under the origin country’s system).
This regime can be applied for a maximum period of six years, with the option to renounce or be excluded earlier.
Who Can Benefit from This Regime?
- Qualified professionals and executives with high income levels.
- International employees or expatriates who relocate their professional activity to Spain.
- Individuals carrying out an economic activity in Spain that qualifies as entrepreneurial activity.
- Persons providing services to start-up companies, engaging in training, research, development, or innovation activities.
- New since 2023: relocation does not need to be ordered by the employer the employment activity may be performed remotely, using only digital, telematic, and telecommunications systems.
This condition is deemed fulfilled particularly in the case of employees holding an international telework visa. Individuals with income or assets abroad seeking greater tax efficiency.
Possible disadvantages of the Beckham Law:
| Limitation | Points to Consider |
| Double taxation risk | Most double tax treaties cannot be applied, which may lead to duplicate taxation |
| Severance pay not exempt | Dismissal compensation is fully taxable, without the exemptions allowed under the regular regime |
| No personal or family deductions | No deductions are applied for dependents, ascendants, or disability |
| Taxation on main residence in Spain | The regime excludes the main home from exemptions, meaning it is subject to imputed income tax |
Conclusions
The Beckham Law remains an effective fiscal tool for attracting international talent to Spain, especially for highly qualified professionals with high incomes.
At Baker Tilly, we conduct an individualized analysis of each situation to ensure that the regime is applied correctly and provides real value to the taxpayer, always within the current legal framework.
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