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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Relocating to Spain brings up an immediate concern: what your tax bill will look like. For many incoming professionals, the answer comes down to one special rule — the special expat tax regime, better known as 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 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 not have been a Spanish tax resident in the five years before the move, the move has to be tied to a job offer, a posting or a company directorship, and the activity must be performed principally on Spanish territory. The latest changes have widened the scope to digital nomads and some self-employed profiles.

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 the year of arrival and the following five.

It does not suit every case. Where a large part of your wealth web sits abroad, the effect on wealth tax and on the 720 declaration should be calculated before deciding. A short analysis before applying avoids an expensive mistake.

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