01What is the Beckham Law?
Spain’s Beckham Law, formally the Régimen Especial para Trabajadores Desplazados under Article 93 of the Spanish Income Tax Act, is one of the most valuable tax regimes available to foreigners relocating to Spain.
The name comes from David Beckham, who benefited from an early version of the regime when he moved to Real Madrid in 2003. Today it applies to a much broader group: remote workers, entrepreneurs, startup executives, highly qualified professionals and investors.
The core benefit is straightforward. When you become a Spanish tax resident, Spain normally taxes you on your worldwide income. Under the Beckham Law you are instead taxed only on your Spanish-source income, at a flat rate of 24% rather than the standard progressive rates that reach 47%. The regime applies for six tax years: the year you become resident, plus the following five.
Think of it this way: you live in Spain and are legally resident here, but for tax purposes you are treated more like a non-resident who simply earns income in Spain. That distinction is what makes the savings so significant.
02Who can apply?
The regime is available to foreign individuals who meet specific professional and residency requirements. The key criteria are:
- You must not have been a Spanish tax resident in the five years before your move. If you have lived in Spain recently, you will not qualify.
- You must move to Spain for a qualifying professional reason. There must be a clear link between your relocation and the start of your work activity in Spain.
The main qualifying scenarios
- An employee relocating under a Spanish employment contract
- A remote worker employed by a foreign company, the most common route for Digital Nomad Visa holders
- A director or administrator of a Spanish company, provided your shareholding is below 25% if the company is a patrimonial entity
- An entrepreneur with an ENISA-certified innovative startup
- A highly qualified professional working in R&D or with a recognised startup
You must not operate through a permanent establishment in Spain. This is critical for freelancers and the self-employed. A permanent establishment means a fixed, ongoing business presence: an office, employees, or directly providing services to clients from Spain. Working from home or a co-working space under a foreign employment contract does not typically create one. But if you are self-employed and invoice clients directly, Spanish or foreign, you are at real risk of being disqualified. This is one of the most common and most costly errors we see.
03The tax rates in detail
Employment income
All employment income is taxed in Spain under the Beckham Law, regardless of where it is earned or where your employer is based.
| Employment income | Rate |
|---|---|
| Up to €600,000 | 24% |
| Above €600,000 | 47% |
Investment income from Spanish sources
Dividends, interest and capital gains arising in Spain are taxed on a progressive scale.
| Spanish investment income | Rate |
|---|---|
| Up to €6,000 | 19% |
| €6,001 to €50,000 | 21% |
| €50,001 to €200,000 | 23% |
| €200,001 to €300,000 | 27% |
| Over €300,000 | 30% |
04What is exempt
This is where the Beckham Law becomes particularly valuable for people with international assets:
- Foreign investment income is not taxed in Spain
- No obligation to file Modelo 720, the foreign asset declaration
- No Spanish Wealth Tax on assets held abroad
- No requirement to declare global income or worldwide investments
For clients with significant portfolios, pensions or real estate outside Spain, these exemptions can be worth considerably more than the headline income tax saving.
05What you cannot do under the Beckham Law
The regime also comes with restrictions worth understanding before you apply:
- You cannot deduct pension contributions
- You cannot claim family deductions
- You cannot apply the foreign-earned income exemption under Article 7p
- Severance payments and maternity or paternity benefits are fully taxable
- Spain will not issue you a tax residency certificate for applying double tax treaties, which can affect how you are treated in other countries
06Including your family
Your spouse and dependent children under 25 (or of any age if disabled) can also benefit from the regime, provided that:
- They move to Spain with you or after you
- They have not been Spanish tax residents in the past five years
- Their income is lower than yours, the principal applicant’s
Each family member must file their own Modelo 149 within six months of relocating, or within six months of the principal applicant’s timeline, whichever is later.
If the principal applicant loses access to the regime, all family members lose it too. Family members can also lose it individually if their income exceeds the main applicant’s or they no longer meet the residency criteria.
07How to apply, step by step
Step 1: Arrive in Spain and become tax resident
Tax residency means spending more than 183 days in Spain in a calendar year.
Step 2: Register with Spanish Social Security
Or present a valid A1 certificate if you are covered by a foreign social security system.
Step 3: File Modelo 149 within six months
Modelo 149 is the application for the Beckham Law, and it must be filed within six months of your Social Security registration date. The deadline is absolute. Miss it and you lose access to the regime for your first years of residence, with no way to apply retrospectively.
Documents you will need
- Employment contract or letter of appointment
- Proof of your start date and of the link between your relocation and your work, such as an assignment letter
- Spanish residency permit, where applicable
- Social Security certificate or A1 form
- For entrepreneurs: an ENISA certificate confirming innovative activity
- For highly qualified professionals: qualifications confirming your specialist background
- For company directors: documents confirming the company is not patrimonial, if your shareholding exceeds 25%
Once the application is submitted, the tax authorities have 10 working days to approve it or request more information, although in practice this timeline is rarely met.
08Filing your taxes under the Beckham Law
Once accepted into the regime, you file Modelo 151 each year instead of the standard Modelo 100. You report only Spanish-source income and all employment income. Capital gains and dividends from Spanish investments are included.
Returns are filed electronically and are typically due by 30 June each year for the previous year’s income.
09How to lose the regime
The regime can be lost, and the consequences are significant. You will be removed from it if:
- You fail to file Modelo 149 on time, which means losing it before it even begins
- You start receiving income through a permanent establishment in Spain, for example by becoming self-employed or starting a business that operates locally
- You are unemployed for a prolonged period without taking a qualifying new role
- You voluntarily renounce the regime, which can only be done once, through Modelo 149
You must notify the Spanish Tax Agency within one month of becoming aware that you no longer meet the eligibility criteria.
10A few things worth knowing
Crypto and NFTs
Income from crypto assets may be taxable in Spain if the private keys or custody arrangements are held here. This is an evolving area and worth specific advice if it applies to you.
International employment contracts
Your contract should clearly state where your duties are performed and how your pay is structured. This can affect how the regime applies and how you are treated in your home country.
Planning for the end of the regime
The Beckham Law lasts six years. What happens afterwards is worth planning well before year six, particularly if you have significant foreign assets, which will fall under Spanish Wealth Tax once the regime ends.
Self-employment and Spanish clients
If you plan to become self-employed, open a business in Spain or earn significant income from Spanish passive sources, the Beckham Law may not be the right framework for you. Regular Spanish tax residency, with all its deductions and treaty access, can sometimes be more advantageous.
11How SamirLaw can help
The Beckham Law is valuable, but only if you apply correctly, on time, and with a clear understanding of how it interacts with your income structure and international situation. We handle the full process:
- Eligibility assessment based on your individual profile
- Advice on how your income and employment structure interact with the regime
- Preparation and filing of Modelo 149 and the annual Modelo 151
- Family inclusion planning
- Integration with your visa application and Social Security registration
- Long-term planning for what comes after the regime ends
The information in this guide is provided for general informational purposes only and does not constitute legal or tax advice. While we have taken care to ensure the accuracy of the content at the time of publication, tax laws and regulations are subject to change and individual circumstances vary significantly. We strongly recommend seeking qualified legal and tax advice before making any decisions. For advice tailored to your circumstances, please contact us directly.