Moving to Spain but worried about high taxes? That’s why expats need to learn about the Beckham Law, Spain’s special expat tax regime.

Formally introduced in 2005 as part of Royal Decree 687/2005, it allows certain newcomers to Spain to be taxed as non-residents for up to six years, capping their Spanish income tax at a flat rate.

The nickname comes from football icon David Beckham, one of its earliest and most famous beneficiaries.

Although the law later excluded professional athletes, it continues to attract many expats from high-earning executives to digital nomads.

Key Tax Benefits

Under normal residency, Spain’s personal income tax can hit 47% or more. At almost half, that’s a pretty high rate. And, because you’re a resident in this scenario, you’ll also owe tax on worldwide income. Check this page to learn about tax liability in Spain as a dual citizen.

But under the Beckham Law:

  • Flat Income Tax Rate (24%) on Spanish-sourced income up to €600,000. Your income above that threshold is taxed at around 47%.
  • No Spanish tax on income, dividends, or gains generated outside Spain.
  • Only Spanish assets are subject to Spain’s wealth tax.
  • Unlike standard residents, Beckham beneficiaries are not required to file the Modelo 720 foreign asset declaration.

 

Here’s a brief comparison:

Tax Aspect Standard Spanish Resident Tax Beckham Law
Income Tax Rates Progressive, ~19% to 47% (higher in some regions) on worldwide income. Flat 24% on Spanish income to €600k; 47% on the excess. No tax on foreign income.
Foreign Income Taxable in Spain (with credits/treaties). Exempt from Spanish tax.
Wealth Tax Applies to worldwide assets (region-dependent rules). Only Spanish assets are taxed.
Foreign Asset Reporting Must file Modelo 720 if assets abroad exceed €50,000. No Modelo 720 obligation.
Duration Indefinite, as long as you reside in Spain. 6 years total (year of arrival + 5 more).
Deductions & Allowances Standard resident deductions/credits. Limited. Many resident deductions do not apply.

Eligibility Criteria

You may qualify for the Beckham Law if:

  1. You haven’t been a Spanish tax resident in the last 5 years.
  2. You relocate to Spain for employment or certain approved startup/freelance roles.
  3. You primarily work in Spain (at least ~85% of your workdays).
  4. You aren’t self-employed under a normal scenario, though the 2023 Start-Up Law creates options for remote workers and some entrepreneurs.
  5. You apply within 6 months of becoming employed or registered in Spain.
  6. You aren’t a professional athlete.

 

Note: Recent reforms extend eligibility to digital nomads, entrepreneurs in startups, and some family members of the main applicant.

Application Process (Modelo 149)

  1. Obtain a NIE (foreign ID number) and Social Security registration.
  2. Register as a taxpayer via Modelo 030.
  3. File Modelo 149 within six months of your job start/residency registration.
  4. Provide documentation (work contract, ID, proof you meet all conditions).
  5. Once approved, Spanish payroll applies a flat 24% withholding, and you file a non-resident return each year under the regime.

Comparisons with Other Tax Regimes

  • Portugal (NHR) [link to Portugal tax liability blog]: Portugal’s Non-Habitual Resident regime can exempt much foreign income entirely for up to 10 years. It levies a flat 20% on certain local “high value” professions. More generous for retirees, it’s also under political scrutiny; Spain’s Beckham Law, by contrast, remains stable but lasts only 6 years.
  • Italy (Flat Tax): Italy offers a lump-sum €100k annual tax on foreign income for 15 years (recently raised for some). Great for ultra-high-net-worth individuals, but local Italian income is taxed at normal rates, unlike the 24% in Spain.
  • UK (Non-Doms) or Malta (Global Residence) [link to Malta Tax liability blog]: Various schemes let expats avoid local tax on non-remitted or non-local income. Spain’s Beckham Law is simpler for some and requires no foreign asset reporting. However, it’s time-limited and focuses on active workers rather than purely passive retirees.

Who Benefits Most?

  1. High-Income Earners/Executives: The 24% flat rate can save tens of thousands in taxes, especially for six-figure salaries. Foreign dividends or capital gains remain untaxed by Spain.
  2. Digital Nomads: Recent changes allow remote workers with foreign employers to pay 24% on Spanish-sourced salary and skip reporting foreign income. This makes Spain more appealing for location-independent professionals.
  3. Certain Retirees (Family Members): Retirees don’t typically qualify on their own, since the law requires employment. But if they come as dependents of a Beckham-qualified worker, they too can avoid tax on foreign pensions for the 6-year period.

Drawbacks and Limitations

  • 6-Year Limit: After that, you become a normal resident and face full Spanish tax on worldwide income.
  • No Deductions: You cannot claim many standard resident allowances (like family or housing deductions).
  • Strict Compliance: Spanish tax authorities audit Beckham users more frequently, so ensure you follow the rules.
  • Potential Double Tax: If your home country also taxes you (e.g., Americans), you must coordinate foreign tax credits carefully.
  • No Athlete Access: Professional sportspeople can’t use this law.

Expert Insights and Economic Impact

Tax professionals see Beckham Law as an incentive for international talent. It’s a clear “win-win” if you wouldn’t otherwise move to Spain. But it isn’t without its detractors.  Some Spaniards criticize it for favoring wealthy foreigners.

Authorities defend it as a means to bring in global professionals who contribute to the local economy—through jobs, spending, and property investments.

Spain’s 2023 Start-Up Law further underscores the government’s aim to attract digital nomads, entrepreneurs, and remote workers, expanding Beckham eligibility. This will become more and more important as the sun sets on Spain’s Golden Visa program.

Economists note that even at a flat 24%, Spain gains revenue it might not otherwise receive. Meanwhile, high earners or location-independent workers appreciate the simplicity (no foreign asset reporting) and tax savings on Spanish income.

Make the Beckham Law Work For You

Spain’s Beckham Law can significantly reduce taxes for qualified newcomers. High earners, top-level professionals, and now digital nomads stand to save the most.

Although it lasts just six years and requires strict conditions, the regime remains a key attraction for talent-hungry Spain. If you’re eyeing a Spanish relocation and can meet the requirements, leveraging Beckham Law—combined with sound cross-border planning—can help you enjoy life in Spain with far fewer tax headaches.

Interested in learning more about a transition to dual citizenship in Spain? Contact us to speak with one of our experts for free today.