The Beckham Law in Spain: who qualifies and how to apply

The Beckham Law in Spain: who qualifies and how to apply

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Moving to Spain for work 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, better known as the Beckham Law.

The idea is straightforward: instead of being taxed as a Spanish resident on your worldwide income, you are treated as a non-resident for tax purposes on your Spanish-source employment income, at a flat rate of 24% up to 600,000 euros with 47 percent applying beyond that threshold. For higher earners, the saving can be considerable.

Not everyone qualifies. In broad terms, you must have been non-resident in Spain for the previous five tax years, the move has to be tied to a job offer, a posting or aquí a company directorship, 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. You have to apply within six months of starting the activity that triggers residence. Miss it and the regime is lost for the whole assignment. Once granted, it applies for a total of six tax years.

It is not automatically the better option. Where a large part of your wealth sits abroad, the effect on wealth tax and on the 720 declaration should be calculated before deciding. Running the numbers in advance avoids an expensive mistake.

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