{"id":35849,"date":"2023-11-23T15:37:28","date_gmt":"2023-11-23T14:37:28","guid":{"rendered":"https:\/\/entretramites.com\/en\/?p=35849"},"modified":"2023-11-23T15:37:30","modified_gmt":"2023-11-23T14:37:30","slug":"what-is-the-beckham-law","status":"publish","type":"post","link":"https:\/\/entretramites.com\/en\/fiscal-tax\/what-is-the-beckham-law","title":{"rendered":"What is the Beckham Law and how does it work in Spain?"},"content":{"rendered":"\n<p><strong>What is the <\/strong><a href=\"https:\/\/entretramites.com\/en\/taxes\/beckham-law\"><strong>Beckham Law<\/strong><\/a><strong>?<\/strong> It is the common name for Spain\u2019s <em>Special tax regime for workers posted to Spanish territory<\/em>, regulated under <a href=\"https:\/\/sede.agenciatributaria.gob.es\/Sede\/en_gb\/ayuda\/manuales-videos-folletos\/manuales-practicos\/manual-tributacion-no-residentes\/regimenes-opcionales\/regimen-especial-impatriados.html\" rel=\"nofollow noopener\" target=\"_blank\"><strong>Article 93 of the Spanish Personal Income Tax Law (Law 35\/2006)<\/strong><\/a><strong>.<\/strong><\/p>\n\n\n\n<p>This regime allows certain foreign workers who move to Spain for employment reasons to be taxed under non-resident income tax rules, even though they become Spanish tax residents.<\/p>\n\n\n\n<p>In practical terms, it means you can benefit from a flat tax rate on employment income instead of Spain\u2019s progressive income tax scale.<\/p>\n\n\n\n<p>Below, you\u2019ll find a clear explanation of <strong>what is the Beckham Law<\/strong>, who qualifies, how it works, and how to apply correctly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the Beckham Law and who can apply?<\/strong><\/h2>\n\n\n\n<p>The Beckham Law applies to individuals who move to Spain as a result of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"margin-top:20px\">An employment contract with a Spanish employer<\/li>\n\n\n\n<li style=\"margin-top:20px\">A transfer from a foreign company to a Spanish entity<\/li>\n\n\n\n<li style=\"margin-top:20px\">Being appointed as a company director (with certain shareholding limits)<\/li>\n\n\n\n<li style=\"margin-top:20px\">Performing entrepreneurial or highly qualified professional activities under specific conditions introduced by the <a href=\"https:\/\/one.gob.es\/en\/startups-law\" rel=\"nofollow noopener\" target=\"_blank\"><strong>Startup Law (Law 28\/2022)<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>To qualify, you must meet these legal requirements:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"630\" height=\"368\" src=\"https:\/\/entretramites.com\/en\/wp-content\/uploads\/2023\/11\/image-1.png\" alt=\"what is the beckham law\" class=\"wp-image-55857\" style=\"width:488px;height:auto\" srcset=\"https:\/\/entretramites.com\/en\/wp-content\/uploads\/2023\/11\/image-1.png 630w, https:\/\/entretramites.com\/en\/wp-content\/uploads\/2023\/11\/image-1-300x175.png 300w\" sizes=\"(max-width: 630px) 100vw, 630px\" \/><\/figure>\n\n\n\n<p>The reduction from 10 to 5 years of prior non-residence was introduced by the Startup Law to make Spain more competitive in attracting international talent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How does taxation work under the Beckham Law?<\/strong><\/h2>\n\n\n\n<p>Understanding <strong>what is the Beckham Law<\/strong> requires looking at how income is taxed.<\/p>\n\n\n\n<p>Under this regime:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"margin-top:20px\">Employment income up to \u20ac600,000 per year is taxed at <strong>24%<\/strong><\/li>\n\n\n\n<li style=\"margin-top:20px\">Income exceeding \u20ac600,000 is taxed at <strong>47%<\/strong><\/li>\n\n\n\n<li style=\"margin-top:20px\">Only Spanish-source income is generally taxed (with some exceptions)<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>Unlike ordinary tax residents, you are taxed under <a href=\"https:\/\/entretramites.com\/en\/immigration\/non-resident-taxes-in-spain\"><strong>Non-Resident Income Tax<\/strong><\/a> (IRNR) rules, even though you are considered resident for other purposes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Key advantages<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"margin-top:20px\">Flat 24% rate instead of progressive IRPF rates (which can exceed 45% depending on the region)<\/li>\n\n\n\n<li style=\"margin-top:20px\">No taxation on worldwide income (except employment income)<\/li>\n\n\n\n<li style=\"margin-top:20px\">Wealth Tax applies only to assets located in Spain<\/li>\n\n\n\n<li style=\"margin-top:20px\">No obligation to file <a href=\"https:\/\/entretramites.com\/en\/fiscal-tax\/form-720-foreign-assets-declaration\"><strong>Form 720<\/strong><\/a> (assets abroad declaration)<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>This makes the regime particularly attractive for executives, tech professionals, and internationally mobile workers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who cannot apply?<\/strong><\/h2>\n\n\n\n<p>The Beckham Law does not apply to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"margin-top:20px\">Self-employed individuals operating through a permanent establishment<\/li>\n\n\n\n<li style=\"margin-top:20px\">Professional athletes (excluded under the reform of 2010)<\/li>\n\n\n\n<li style=\"margin-top:20px\">Directors who hold more than 25% of company shares (unless specific Startup Law exceptions apply)<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>If you are planning to work as a freelancer in Spain, this regime generally does not apply to you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How long does the Beckham Law last?<\/strong><\/h2>\n\n\n\n<p>The regime applies during:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"margin-top:20px\">The year of arrival in Spain, and<\/li>\n\n\n\n<li style=\"margin-top:20px\">The following five tax years<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>In total, you can benefit for up to six years.<\/p>\n\n\n\n<p>It does not extend automatically beyond this period.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to apply step by step<\/strong><\/h2>\n\n\n\n<p>Applying correctly is essential. If you miss the deadline, you lose the right to opt for the regime.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step 1: Register with Social Security<\/strong><\/h3>\n\n\n\n<p>You must first be registered as an employee in Spain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step 2: Submit Form 149<\/strong><\/h3>\n\n\n\n<p>The application must be filed within <strong>six months from your Social Security registration date<\/strong>.<\/p>\n\n\n\n<p>Form 149 is submitted to the Spanish Tax Agency electronically.<\/p>\n\n\n\n<p>You must provide:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"margin-top:20px\">Passport<\/li>\n\n\n\n<li style=\"margin-top:20px\">NIE<\/li>\n\n\n\n<li style=\"margin-top:20px\">Employment contract<\/li>\n\n\n\n<li style=\"margin-top:20px\">Social Security number<\/li>\n\n\n\n<li style=\"margin-top:20px\">Company certification<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step 3: Annual filing using Form 151<\/strong><\/h3>\n\n\n\n<p>If approved, you will file your annual tax return using <strong>Form 151<\/strong>, not the standard Form 100.<\/p>\n\n\n\n<p>The Tax Agency will issue a resolution confirming acceptance of the regime.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Disadvantages to consider<\/strong><\/h2>\n\n\n\n<p>Although attractive, the regime has limitations:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"margin-top:20px\">Limited access to double taxation treaties<\/li>\n\n\n\n<li style=\"margin-top:20px\">No application of standard IRPF reductions and family allowances<\/li>\n\n\n\n<li style=\"margin-top:20px\">Certain exemptions (such as severance pay exemptions) may not apply<\/li>\n\n\n\n<li style=\"margin-top:20px\">No deduction of typical personal allowances available under ordinary IRPF<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>Before applying, it is essential to compare scenarios.<\/p>\n\n\n\n<p>For some professionals with moderate income, the standard progressive regime may actually result in lower taxation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Practical example<\/strong><\/h2>\n\n\n\n<p>If you earn \u20ac120,000 per year as an executive in Madrid:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"margin-top:20px\">Under the Beckham Law \u2192 24% flat rate<\/li>\n\n\n\n<li style=\"margin-top:20px\">Under ordinary IRPF \u2192 progressive scale (which may exceed 40%)<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>The difference can be significant, especially during the first years of relocation.<\/p>\n\n\n\n<p>However, if your income is below \u20ac50,000, the tax saving may be smaller.<\/p>\n\n\n\n<p>Understanding <strong>what is the Beckham Law<\/strong> is not just about knowing the 24% rate. It is about analysing whether you meet the requirements and whether the regime truly benefits your personal tax situation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Frequently Asked Questions (FAQs)<\/strong><\/h2>\n\n\n\n<p><strong>What is the Beckham Law in Spain?<\/strong><strong><br><\/strong>It is a special tax regime allowing certain foreign workers to pay a flat 24% rate on employment income instead of progressive IRPF rates.<\/p>\n\n\n\n<p><strong>How long can I benefit from the Beckham Law?<\/strong><strong><br><\/strong>The regime applies for six tax years: the year of arrival plus five additional years.<\/p>\n\n\n\n<p><strong>Can freelancers apply for the Beckham Law?<\/strong><strong><br><\/strong>Generally no, if they operate through a permanent establishment in Spain. The regime mainly applies to employees and certain directors.<\/p>\n\n\n\n<p>If you are relocating to Spain for work, understanding what is the Beckham Law can make a substantial difference in your tax planning. Proper advice ensures you apply on time and choose the regime that truly benefits you.<\/p>\n\n\n\n<p>If you need personalized assistance, at <a href=\"https:\/\/entretramites.com\/en\/\"><strong>Entre Tr\u00e1mites<\/strong><\/a> we offer management and tax advisory services for freelancers and SMEs. You can contact us through this <a href=\"https:\/\/entretramites.com\/en\/contact\"><strong>contact form<\/strong><\/a> for us to call you, or if you prefer, you can <a href=\"https:\/\/entretramites.com\/en\/consultancy\/free-tax-consultation\"><strong>schedule a free consultation<\/strong><\/a> or write to us on <a href=\"https:\/\/api.whatsapp.com\/send\/?phone=34644034481&amp;text=Hola%21+Quisiera+saber+m%C3%A1s+sobre+sus+servicios&amp;type=phone_number&amp;app_absent=0\" rel=\"nofollow noopener\" target=\"_blank\"><strong>WhatsApp<\/strong><\/a><strong>.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the Beckham Law? Learn how Spain\u2019s special tax regime works and who can apply.<\/p>\n","protected":false},"author":1,"featured_media":55859,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[374,964,425],"class_list":["post-35849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fiscal-tax","tag-beckham-law","tag-cross-border-taxation","tag-tax-residence"],"acf":[],"_links":{"self":[{"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/posts\/35849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/comments?post=35849"}],"version-history":[{"count":7,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/posts\/35849\/revisions"}],"predecessor-version":[{"id":55858,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/posts\/35849\/revisions\/55858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/media\/55859"}],"wp:attachment":[{"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/media?parent=35849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/categories?post=35849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/tags?post=35849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}