Beckham Law in Spain: Complete Guide

Spain offers a special tax regime for workers, professionals, entrepreneurs and investors who relocate to Spanish territory, commonly known as the Beckham Law or Impatriate Regime (Article 93 of the Spanish Personal Income Tax Law - LIRPF). This regime allows qualifying individuals to be taxed under the Non-Resident Income Tax rules while maintaining their status as Spanish tax residents.

This page explains how the Beckham Law works in practice in Spain: who qualifies, the different eligibility categories (employees, digital nomads, investors, entrepreneurs, and highly qualified professionals), the applicable tax rates, how family members can benefit, and the application and compliance requirements.

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Core concept: The Beckham Law allows you to pay a flat 24% tax rate on Spanish-source employment income (up to €600,000) instead of the progressive rates that can reach 47%. Additionally, you are only taxed on Spanish-source income for most income types, not on your worldwide income. This regime applies for 6 tax years (the year of arrival plus the following 5 years).

Who is the Beckham Law for in Spain?

The special tax regime is available to different categories of individuals who relocate to Spain:

  • Employees who start working for a Spanish company or are transferred to Spain by their foreign employer
  • Digital nomads working remotely for a foreign employer while residing in Spain
  • Investors who become directors of a Spanish company in which they hold a qualifying participation
  • Entrepreneurs carrying out innovative business activities certified by ENISA
  • Highly qualified professionals providing services to Spanish startups or conducting R&D activities
  • Family members (spouse/partner and children under 25) who accompany the main applicant
Key requirement: You must not have been a Spanish tax resident in the 5 tax years prior to your relocation. The tax authorities can verify this requirement even for prescribed tax years. Additionally, professional athletes are explicitly excluded from the regime.

Tax Rates Under the Beckham Law

One of the main advantages of the Beckham Law is the reduced and simplified tax structure:

Income Type Tax Rate Notes
Employment income (up to €600,000) 24% Flat rate instead of progressive (up to 47%)
Employment income (above €600,000) 47% Marginal rate for excess
Savings income (up to €6,000) 19% Dividends, interest, capital gains
Savings income (€6,000 - €50,000) 21% Progressive brackets
Savings income (€50,000 - €200,000) 23% Progressive brackets
Savings income (€200,000 - €300,000) 27% Progressive brackets
Savings income (above €300,000) 28% Top marginal rate
Territorial taxation: Under the Beckham Law, you are generally only taxed on Spanish-source income. Foreign-source income (except employment income) is typically not subject to Spanish taxation, providing significant planning opportunities.

Main Requirements in Spain (What you must prove)

The application focuses on demonstrating eligibility through specific conditions:

📅 5 Years Non-Residence

You must not have been a Spanish tax resident in the 5 tax years prior to your relocation. This can be verified by tax authorities even for prescribed years.

💼 Qualifying Relocation Cause

Your move to Spain must be caused by a qualifying circumstance: employment contract, director appointment, entrepreneurial activity, highly qualified professional services, or remote work for a foreign employer.

🏢 No Permanent Establishment

You must not obtain income that would qualify as obtained through a permanent establishment in Spain (except for entrepreneurs and professionals whose activity gives access to the regime).

📝 Form 149 Filing

You must file Form 149 (Modelo 149) within 6 months from the date of your Social Security registration or the employer's transfer letter. Missing this deadline means losing the regime permanently.

🏠 Spanish Tax Residence

You must become a Spanish tax resident as a consequence of your relocation. The regime applies from the tax year in which you acquire tax residence.

📊 Immigration Link

For certain visa types (digital nomad, entrepreneur), obtaining the specific visa is considered proof of the cause-effect relationship required for the regime.

Eligibility Categories: Who Can Apply

The Beckham Law distinguishes between different categories of applicants, each with specific requirements:

Category 1: Employees

Individuals who relocate due to an employment contract with a Spanish employer or transfer by a foreign employer.

  • Employment contract (ordinary or special)
  • Transfer letter from foreign employer (if applicable)
  • Must be a genuine employment relationship
  • Professional athletes are explicitly excluded
  • Change of employer does not cause exclusion

Category 2: Digital Nomads

Remote workers employed by foreign companies, working from Spain using digital means exclusively.

  • Employment with company outside Spain
  • Work performed remotely via digital systems
  • International telework visa fulfills the requirement
  • Minimum 3 months prior relationship with employer
  • Employer must have 1+ year of real activity

Category 3: Investors

Individuals who become directors of a Spanish non-patrimonial company in which they may hold shares.

  • Director appointment in Spanish entity
  • Entity must not be a "patrimonial company"
  • No linked-party status if patrimonial
  • Investment must justify presence in Spain
  • Active role in company governance preferred

Category 4: Entrepreneurs

Individuals carrying out innovative or economically significant entrepreneurial activities certified by ENISA.

  • Favorable ENISA report required
  • Activity must be innovative or of special economic interest
  • Non-EU citizens need entrepreneur residence first
  • Specific criteria in Order DGM 1/2023
  • Can deduct international double taxation
Highly Qualified Professionals (Category 5): Professionals providing services to Spanish startups (as defined in the Startup Law) or conducting training, research, development or innovation activities. Must have university degree (3+ years) or 5 years equivalent experience. Remuneration from these activities must exceed 40% of total professional and employment income.

Family Members: Spouse and Dependants (2023 Update)

Since the 2022 reform (Startup Law), family members can also benefit from the special regime under specific conditions:

  • Eligible family members: Spouse/partner and children under 25 years old
  • Timing: Family must arrive within the first tax year of the main applicant's regime (can arrive before, but cannot become tax resident before the main applicant)
  • Non-residence requirement: Family members must not have been Spanish tax residents in the previous 5 years
  • No economic activities: Family members cannot carry out economic activities that would create a permanent establishment
  • Income limit: Combined taxable income of family members must be lower than the main applicant's taxable income
  • Individual option: Each family member must file their own Form 149 within 6 months of arrival
Consequences of non-compliance: If a family member fails to meet the conditions (e.g., child turns 25, income exceeds main applicant's), only that family member loses the regime. The main applicant and other compliant family members continue to benefit. However, if the main applicant renounces or the 6-year period ends, all family members are automatically excluded.

Application Process in Spain (Step-by-Step)

The application process requires careful attention to deadlines and documentation:

Verify eligibility and plan timing

Confirm you meet the 5-year non-residence requirement and identify your qualifying category. Plan your arrival timing to optimize the tax year in which you become tax resident. Consider arriving from July onwards to potentially delay tax residence to the following year.

Establish the qualifying circumstance

Depending on your category: sign employment contract, obtain director appointment, secure ENISA favorable report (entrepreneurs), or obtain digital nomad visa. Ensure clear documentation of the cause-effect relationship.

Register with Spanish Social Security

This registration date starts the 6-month countdown for Form 149 filing. Alternatively, the employer's transfer letter date may be used. Keep documentation of the exact registration date.

File Form 149 (Modelo 149)

Submit Form 149 within 6 months of Social Security registration or transfer letter date. This is a strict deadline - missing it means permanent loss of the regime. Include all required documentation proving eligibility.

Communicate to employer/withholding agent

Inform your employer of your election so they apply the correct withholding rates (24% up to €600,000, 47% above). Provide the Form 149 filing confirmation.

File annual tax returns (Form 151)

Each year, file Form 151 (Modelo 151) instead of the regular Form 100. Report only Spanish-source income (except worldwide employment income). Deadlines and procedures follow IRNR rules.

Monitor compliance throughout the regime

Ensure ongoing compliance: no permanent establishment income (unless allowed), maintain qualifying status, track family member compliance. Report any changes that could affect eligibility within one month via Form 149.

Important Limitations and Exclusions

The Beckham Law regime has certain limitations you should be aware of:

  • No Spanish double tax treaty benefits: You cannot claim benefits under Spain's tax treaties as you are not considered a full tax resident for treaty purposes
  • No tax residence certificates: You cannot obtain Spanish tax residence certificates for treaty purposes
  • Limited deductions: Pension plan contributions, reinvestment in habitual residence, rental income reductions, and certain other IRPF benefits do not apply
  • Wealth tax: You are subject to Wealth Tax (IP) and Solidarity Tax (ISGF) only on Spanish-situated assets (obligation "por obligación real")
  • No Form 720: No obligation to report foreign assets via Form 720 (informative declaration)
  • Severance pay: Not exempt from taxation under this regime (unlike regular IRPF)

Renunciation and Exclusion

Understanding when and how the regime ends is crucial for tax planning:

Voluntary Renunciation

Requirements and effects:

  • Must be communicated in November-December of the year before it takes effect
  • File Form 149 for renunciation
  • Also notify the withholding agent
  • Once renounced, cannot re-elect the regime
  • If leaving Spain, file within one month of departure

Mandatory Exclusion

Causes and consequences:

  • Failure to meet ongoing conditions
  • Obtaining PE income (unless allowed)
  • Takes effect in the year of non-compliance
  • Must notify tax authorities within one month
  • Cannot re-elect the regime once excluded
Flexibility between categories: Recent tax rulings confirm that you can change between qualifying categories during the regime (e.g., from employee to director, or from director to employee) without losing the benefit, as long as you always meet one of the qualifying conditions. The cause-effect analysis only applies to the initial relocation.

Frequently Asked Questions (Beckham Law)

Can I rectify my tax returns if I regret choosing the Beckham Law?

No. According to binding ruling V0350-22, once you have opted for the special regime, you cannot rectify self-assessments from non-prescribed years, cancel the Form 151 filings, and declare income via Form 100 to request refunds. The choice is binding for the duration of the regime.

What happens if I change employers during the regime?

Changing employers does not cause exclusion from the regime, as confirmed by multiple tax rulings (V1964-15, V0432-17). Brief periods of unemployment between jobs are also permitted, as long as you subsequently start a new qualifying relationship.

Can I become self-employed under the Beckham Law?

Generally no, unless you qualify as an entrepreneur (with ENISA certification) or a highly qualified professional serving startups or conducting R&D. Ordinary self-employment that would create a permanent establishment causes exclusion from the regime (V2248-24).

How are cryptocurrencies taxed under the Beckham Law?

According to V1662-23, the location of cryptocurrencies depends on where the private keys are custodied. If custodied by a Spanish exchange or by the taxpayer while tax resident in Spain, gains are considered Spanish-source and subject to savings tax rates (19%-28%). This interpretation may evolve with future rulings.

What about the imputed income for my Spanish property?

Recent case law (STSJ Madrid 5575/2024) suggests that the habitual residence exemption from imputed income should apply to Beckham Law taxpayers, as they maintain their status as IRPF taxpayers. This contradicts earlier administrative interpretation but provides a basis for challenge.

Can my family apply if they arrived before me?

Yes, family members can arrive before the main applicant, but they cannot become Spanish tax residents before the main applicant does. If they become tax resident first, they won't qualify for the family regime. Careful timing and planning is essential.

Need help with the Beckham Law in Spain? We assist with eligibility analysis, Form 149 filing, tax optimization strategy, family planning, employer communication, ongoing compliance monitoring, and coordination with immigration procedures (digital nomad visa, entrepreneur visa, etc.).

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Disclaimer

This page provides general information for educational purposes and does not constitute legal or tax advice. Tax law is complex and subject to frequent changes. Requirements and administrative interpretation may vary depending on individual circumstances. For a tailored assessment, contact our team.