WHAT IS THE BECKHAM LAW?
The Beckham Law is known as the Special Regime for workers displaced to Spanish territory which the Personal Income Tax Law regulates in its Article ......).
It is a special tax regime that offers the option to benefit from better taxation for those who move residence to Spain because of a job. It is a very advantageous tax regime because its primary purpose is to offer advantages to attract qualified workers to Spain.
This regime is known as the Beckham Law because the footballer David Beckham was one of the first to take advantage of the benefits of this regime.
HOW TO APPLY FOR THE BECKHAM LAW?
It is an optional regime
It can be applied by submitting an application to the Tax Agency demonstrating that the requirements are met and the administration will review the documentation submitted and issue a resolution.
If approved, the regime will be applicable for 6 years, although it can also be canceled earlier.
What benefits does the Beckham law provide?
Taxation of salaries at a fixed rate of 24% up to 600.000€ (47% of that amount).
Taxation in Spain only for income obtained in Spain (with the exception of salaries).
WHAT ARE THE REQUIREMENTS TO BE ABLE TO APPLY FOR THE BECKHAM LAW?
No residence in Spain during the last 10 years.
There must be a new job that justifies the transfer of the person to Spain.
There are different alternatives to fulfill this requirement, but it is absolutely necessary that there is a job in Spain.
Income cannot be obtained through a permanent establishment located in Spanish territory. That is to say, the applicant cannot have a self-employed activity (cannot be self-employed).
It is advisable to plan this because it is essential to comply with the legal deadlines set by law:
of moving to Spain ........................................................
of starting work .......................................................
of applying for the regime .......................................................
Advantages of the Beckham law
The flat rate is 24% versus the possible 50% tax rate of the general regime.
the general taxable base (which includes earned income, rents, etc.) is taxed at an almost flat rate of 24%, up to a maximum of 600,000 euros. 600,000. What exceeds this amount is taxed at 47%.
Only income obtained in Spain is taxed, with the only exception of earned income (otherwise all worldwide income would be taxed in Spain).
In the Wealth Tax, only assets located in Spain are taxed.
There is no obligation to present the model 720 or Declaration of assets abroad.
Disadvantages of the Beckham Law
Double taxation: double taxation agreements cannot be applied.
There is no right to apply deductions for expenses as in the normal regime.
Dismissal indemnity is not possible as well.
There is no right to deduct the minimum deduction for descendants or relatives.
HOW OUR TAX ADVISOR CAN HELP YOU WITH THE BECKHAM LAW
Our tax advisor must discuss your situation with you in order to be able to evaluate your case and to be able to tell you if you have more advantages than disadvantages.
Once the previous analysis is done, our tax advisors will study if you fulfill all the requirements, and if so, we will help you with the application to the Tax Agency so that it is presented correctly, otherwise it will not be possible to present it again.
Contact us so we can help you.
