Spain's Beckham Law: who qualifies and how to apply

Spain's Beckham Law: who qualifies and how to apply

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Taking a job in Spain raises one question very quickly: how much tax will you actually pay. For a lot of expats, the answer depends on a single regime — the impatriate regime, commonly called the Beckham Law.

The mechanism is simple: instead of being taxed as a Spanish resident on your worldwide income, you are taxed like a non-resident on the income you earn in Spain, at a flat rate of 24 percent on the first 600,000 euros and 47% above that. For higher earners, the difference is substantial.

The conditions are strict. In broad terms, you must have been non-resident in Spain for the previous five tax years, Beckham law requirements in Spain your relocation must be linked to an employment contract or a director role, and the work must be carried out mainly in Spain. Recent reforms have widened the scope to remote workers and certain entrepreneurs.

Timing is the part people get wrong. The election must be filed within six months of registering with Spanish social security. Miss it and the regime is lost for the whole assignment. The benefit then runs for the year of arrival and the following five.

It does not suit every case. Where a large part of your wealth sits abroad, the effect on wealth tax and on the 720 declaration needs to be modelled first. A short analysis before applying is usually time well spent.

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