Beckham Law: Requirements and Tax Benefits Explained by a Tax Expert

WHAT IS THE BECKHAM LAW?

The Beckham Law is the popular name for the Special Tax Regime for Workers Relocating to Spain, which is governed by the Personal Income Tax (IRPF) Act (Article 93).

It is a special tax regime that offers a more favourable tax treatment for individuals who move their tax residence to Spain for work purposes. It is a highly advantageous regime whose primary aim is to attract qualified workers to Spain.

The regime is known as the Beckham Law because footballer David Beckham was one of the first people to benefit from it.

HOW DO I APPLY FOR THE BECKHAM LAW?

• The regime is entirely optional.
• You can apply by submitting a request to the Spanish Tax Agency (AEAT), providing evidence that all eligibility requirements are met. The tax authorities will review the submitted documentation and issue a formal decision.
• If approved, the regime applies for up to 6 years, although it can also be cancelled earlier.

WHAT BENEFITS DOES THE BECKHAM LAW OFFER?

• Employment income is taxed at a flat rate of 24% on earnings up to €600,000 (47% on any amount above that threshold).
• Only income earned in Spain is subject to Spanish taxation.

WHAT REQUIREMENTS MUST I MEET TO APPLY FOR THE BECKHAM LAW?

1. No tax residence in Spain during the preceding 5 years.
2. There must be a new employment or business activity that justifies the relocation to Spain.
3. The relocation must arise as:
   1. a consequence of carrying out in Spain an economic activity classified as an entrepreneurial activity (Article 70 of Act 14/2013, with a favourable report issued by ENISA).

Is the Beckham Regime the same as Highly Qualified status?

No, they are two distinct frameworks, although they are sometimes confused.

Beckham Regime vs. Highly Qualified employee

Beckham Regime (Art. 93 of the Personal Income Tax Act)

• Taxed as a non-resident (IRNR) at a flat rate of 24% on income up to €600,000

• For individuals who relocate to Spain for employment, economic activity, company director, etc.

• Duration: the year of arrival + 5 years

• The employee resides in Spain but is taxed as a non-resident

• Managed through the Spanish Tax Agency (AEAT) (Form 149)

Highly Qualified Worker (Law 14/2013, the "Entrepreneurs Act")

• This is a residence and work authorisation, not a tax regime

• A special authorisation for non-EU nationals coming to Spain to work in highly skilled positions

• Requirements: higher education qualification or demonstrated experience + minimum salary (generally >€40,000 gross)

• Managed through the UGE (Large Business Unit — Spain's dedicated fast-track immigration unit for major employers)

• A faster processing route than the standard immigration procedure

The Beckham Regime and Highly Qualified status can apply to the same individual: a non-EU national who arrives in Spain with a highly qualified worker authorisation may simultaneously opt into the Beckham Regime and be taxed at 24%. However, the two are distinct things: 

• Highly qualified → residence permit/work

• Beckham → tax regime

ADVANTAGES OF THE BECKHAM LAW:

• flat-rate Social Security contribution (tarifa plana) 24% versus the potential 50% top rate applicable under the general tax regime
• The general tax base (which includes employment income, rental income, etc.) is taxed at a near-flat rate of 24%, up to a maximum of €600,000. Any amount exceeding this threshold is taxed at 47%.
• Only income earned in Spain is subject to tax.
• For Wealth Tax purposes, only assets located in Spain are taxable.
• There is no obligation to submit Form 720 (the declaration of assets held abroad).

Dividends, interest, and other gains arising from the transfer of shares or holdings in Spanish companies are subject to a separate tax scale which, although progressive, is more favourable than that applied under the general regime:

DISADVANTAGES OF THE BECKHAM LAW:

• Double taxation: double taxation treaties cannot be applied.
• There is no entitlement to expense deductions as available under the standard tax regime.
• The dismissal compensation exemption is also unavailable.
• There is no entitlement to the deduction for dependent children or family members.

HOW OUR TAX ADVISER CAN HELP YOU WITH THE BECKHAM LAW

Our tax adviser will review your situation with you in detail to assess your specific circumstances and advise you on whether the benefits outweigh the drawbacks in your case.

Following this initial assessment, our tax specialists will determine whether you meet all the eligibility requirements. If you do, we will assist you in submitting your application to the Spanish Tax Agency (AEAT) to ensure it is filed correctly — as the application cannot be resubmitted if it is rejected.

Contact us so we can help you: https://www.conesalegal.com/es/ 

Alessandro Scherini - Tax Adviser in Barcelona.