Spain's Beckham Law: who qualifies and how to apply

Spain's Beckham Law: who qualifies and how to apply

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Moving to Spain for work raises one question very quickly: what your tax bill will look like. For many incoming professionals, the answer depends on a single regime — the impatriate regime, commonly called the Beckham Law.

The idea is straightforward: 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 percent on the first 600,000 euros with 47 percent applying beyond that threshold. For higher earners, the saving can be considerable.

Not everyone qualifies. As a general rule, you must have been non-resident in Spain for the previous five tax years, 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. Recent reforms opened the door to digital nomads and some self-employed profiles.

The deadline is where most applications fail. You have to apply within six months of starting the activity that triggers aquí 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. If you have significant income outside Spain, the effect on wealth tax and on the 720 declaration should be calculated before deciding. A short analysis before applying is usually time well spent.

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