In the video an interview with Marilo Pardo, a Spanish tax lawyer:

 

What is the Beckham Law? 

This is a special tax regime applicable to individuals moving to Spain under which they may be taxed as non-residents. 

What are the main advantages of the special tax regime? 

Flat rate of 24% up to €600,000 on the income obtained in Spain (in contrast to the regular Personal Income Tax with a progressive tax (19%-48%). 

Which income is taxed in Spain? 

Spanish source income + 

Employment income obtained abroad is also taxed in Spain. 

Which income is not taxed in Spain?

Generally speaking, all foreign-sourced income that is not employment income is not taxed in Spain.

Who can benefit from the Beckham Law? 

In general, individuals who have not been tax resident in Spain in the 5 years prior to the tax year corresponding to the date of arrival in Spain and any of the following circumstances apply: 

  • Employees - Labor contract (company managers, employees, artists…) or statutory relationship (public servants)
  • Relocations / secondments - Employees who move to Spain to work under the same employment contract as in their country of origin.
    Requirements: 
    • Employer letter ordering the transfer to the Spanish territory
    • Registration of the employer at the Spanish tax office

 

  • Digital nomads / remote workers - 
    Requirements
    • The work must be remote and telematic
    • Labor contract between the teleworker and the foreign entity
    • Social Security (Spain or abroad)

  • Director of an entity
    Requirements
    • Sole director or board of director

  • Entrepreneurial Activity 
    Requirements
    • Activity of an innovative nature with special economic interest for Spain.
    • Positive report issued by the “Oficina Económica y Comercial” of by the “Dirección General de Comercio Internacional e Inversiones”

  • Highly qualified professional freelancers
    Requirements
    • Working as a freelancer 
    • Providing services to newly created entities or 5 years old (7 for biotechnology, energy or industrial sectors).
    • Not listed Graduate or postgraduate from universities and prestigious business schools

  • Freelancers developing training, research, development and innovation activities
    Requirements:
    • Services of R&D+I
    • The income derived from the activity has to represent more than 40% of the total business, professional and employment income

 

How to apply for the especial tax regime? 

  • In general terms, within the 6 months since the date of the registration at the social security.
  • Until the 16th June 2024, through the tax form 149.
  •  For those that already have applied for the Beckham Law regime, they should send the documentation to the tax office until the 16th June 2024

 

To book a consultation on expat taxes in Spain, go to our services page, choose "Spain" and proceed to book.


Frequently Asked Questions

Automatically Created

What is the Beckham Law in Spain?
The Beckham Law is a special tax regime for individuals moving to Spain, allowing them to be taxed as non-residents.
What are the tax benefits of the Beckham Law?
The main advantage is a flat tax rate of 24% on income up to €600,000, compared to the regular progressive tax rate of 19%-48%.
Who is eligible for the Beckham Law?
Eligibility includes individuals who haven't been tax residents in Spain for the past 5 years and meet specific criteria such as being employees, digital nomads, directors, entrepreneurs, or highly qualified freelancers.
What types of income are taxed under the Beckham Law?
Spanish source income and employment income obtained abroad are taxed under the Beckham Law.
How can one apply for the Beckham Law tax regime?
Applications must be submitted within 6 months of social security registration, using tax form 149 by June 16, 2024.