Are you planning to relocate to Spain but concerned about the potential tax burden? You are not alone. Spain's standard tax rates can reach up to 47% — but there is good news. The Spanish Beckham Law could slash your tax liability while protecting your foreign income.

At Manor Tax, we help expats successfully navigate this special tax regime and save thousands in annual taxes. In this guide, we will cut through the complexity and show you exactly how the Beckham Law works, who qualifies, and how much you could save.

What is the Beckham Law in Spain?

The Beckham Law (officially the "Special Tax Regime for Expatriates") is Spain's powerful tax incentive designed to attract international talent. Named after David Beckham—one of its first beneficiaries when he joined Real Madrid—this regime offers qualified expatriates a dramatically simplified tax situation with substantial savings.
Quick Take: The Beckham Law lets qualifying expats pay just 24% flat tax on worldwide salary up to €600,000 income (instead of up to 47%) and exempts most foreign income from Spanish taxation for up to six years.

How the Beckham Tax Law Spain works

Unlike Spain's standard progressive tax system that can quickly reach high rates, the Beckham Law creates two major advantages:

Application of a flat 24% tax rate on worldwide employment income up to €600,000. Any income exceeding this threshold is taxed at 47%. This represents a substantial reduction compared to Spain's standard progressive tax rates, which begin at 19% and can quickly escalate to 47% at much lower income thresholds (approximately €300,000, depending on the autonomous community).

Exemption from Spanish taxation on most foreign-source income. Under standard Spanish tax residency rules, worldwide income is subject to taxation. However, the Beckham Law treats qualifying individuals as non-residents for tax purposes despite their physical residency status. Consequently, income from foreign investments, overseas rental properties, international business interests, and other non-Spanish sources generally remains outside Spanish tax jurisdiction.

This means if you qualify, you will not only pay significantly lower rates on your Spanish earnings, but your foreign investments, rental properties, and other international income sources often remain outside Spanish tax jurisdiction entirely.

The special status applies for up to six years—the tax year in which the individual becomes a Spanish tax resident plus five additional years—giving you substantial time to plan your long-term tax strategy. According to the Spanish Tax Agency (AEAT), this regime was specifically designed to enhance Spain's competitiveness in attracting global talent.

Who can apply for the Beckham Law Spain?

"Will I qualify?" is typically the first question our clients ask. The current requirements are clearer than ever, but specific conditions must be met.

Key eligibility requirements

You are likely eligible for the Beckham Law if you can check these boxes:
  • ✅ You have not been a Spanish tax resident in the last 5 years
  • ✅ Your relocation to Spain is for work purposes
  • ✅ You will perform your work within Spain
  • ✅ You apply within 6 months of starting work activities in Spain
The work-related relocation can take several forms:
  • Employment with a Spanish company
  • Assignment to Spain by a foreign employer
  • Company director position (with ownership restrictions)
  • Digital nomad with proper visa working remotely for foreign employers
  • Entrepreneur or innovator in qualifying activities

📋 Important note

Before making relocation decisions based on anticipated Beckham Law benefits, we strongly recommend obtaining a professional pre-assessment of your eligibility. Tax authorities scrutinize applications carefully, and certain employment arrangements or previous visits to Spain could affect your qualification status.

Who is excluded from the Spain Beckham Law

Not everyone can benefit from this regime. You likely will not qualify if you:
  • ❌ Are a professional athlete (ironically, Beckham himself would not qualify today)
  • ❌ Work as a traditional freelancer without proper employment contracts
  • ❌ Own more than 25% of the company you manage if it is a passive income/holding company without a business activity
  • ❌ Generate income through a permanent establishment in Spain

Comparative table: Standard IRPF vs. Beckham Law

Income level Standard IRPF Beckham Law regime
Up to €60,000 Up to 37% 24% flat
€60,000-300,000 Up to 45% 24% flat
€300,000-600,000 Up to 47% 24% flat
More than €600,000 47% 47%
Foreign income Taxable Exempt

Main advantages of the Beckham Law for foreigners

The benefits of Spain's Beckham Law extend far beyond simple tax reduction.

The 24% flat tax rate benefit

The immediate advantage most expats notice is the flat 24% rate on Spanish income up to €600,000. This creates particular value for:

  • High-earning professionals: The difference between 24% and potential rates of 45%+ creates enormous savings
  • Variable income earners: No concerns about crossing into higher tax brackets during bonus years
  • Career accelerators: Take that promotion without worrying about diminishing returns due to progressive taxation

Foreign income exemptions

This is where the Beckham Law truly shines. While living in Spain, you can generally receive these types of foreign income tax-free:

  • Dividends from international investments
  • Interest from overseas accounts
  • Rental income from properties abroad
  • Capital gains from non-Spanish assets (with some exceptions)
  • Business profits from international operations (restrictions apply)

This creates unprecedented flexibility for international professionals, allowing you to maintain global financial interests while enjoying Spanish residency.

Family benefits under Spain Beckham Law

A lesser-known advantage is how the regime can benefit your entire household:

  • Spouse/partner eligibility: Your partner can qualify under the same conditions
  • Children under 25: Can also benefit from the special regime
  • Multiplied savings: Each qualifying family member creates additional tax efficiency
  • Simplified family finances: Consistent tax treatment across the household

Beckham Law Spain application process

Successfully applying for the Beckham Law requires careful attention to detail and timing.

Required documents and forms

To apply for the Spanish Beckham Law, you will need:

  • Tax form 030: Initial tax registration form
  • Tax form 149: Specific application for the special tax regime
  • NIE (Foreigner ID Number): Obtained before or during the process
  • Employment documentation: Contract or assignment proof
  • Passport and residency documentation: Including visa if applicable
  • Social Security registration proof: If employed in Spain
  • Supporting evidence: For specific circumstances (entrepreneurial activities, etc.)
Common pitfall: Many applicants struggle with properly documenting their work relationship. We recommend having employment contracts reviewed by a specialist before submission, as even small inconsistencies can lead to rejection.

Application timeline and deadlines

Timing is absolutely critical for Beckham Law applications:

  • 6-month window: Applications must be submitted within six months of starting work in Spain or registering with Social Security
  • Annual filing: Once approved, you will file taxes yearly using tax form 151
  • 6-year benefit period: The special regime applies for the application year plus five more years
  • No extensions: After this period, standard tax rules automatically apply

Planning insight

We frequently recommend our clients coordinate their relocation timing carefully. Starting your Spanish employment near the beginning of a tax year can maximize your benefit period by capturing nearly six full years of tax advantages.

Practical case: Significant tax savings

Example: Technology Director relocated to Barcelona
  • Annual salary: €150,000
  • With standard Income Tax: ~€59,000 in taxes (effective rate ~39%)
  • With Beckham Law: €36,000 in taxes (flat rate 24%)
  • Annual savings: €23,000
  • Total savings over 6 years: €138,000

In this way, the tax difference can be substantial for high-income professionals, allowing them a more favorable financial adaptation during their first years in Spain.

In cases of conflicts or tax discrepancies related to the application of the special regime, it is essential to have expert advice to resolve the situation favorably.

⏱️ Important note: The 6-year benefit period passes quickly. We recommend beginning transition planning in year 4 of your Beckham Law regime to prepare for the shift to standard taxation. This might include restructuring investments, considering company formation options, or exploring other tax optimization strategies.

Next steps: Is the Beckham Law right for you?

The Spanish Beckham Law offers substantial benefits, but maximizing its advantages requires specialized expertise. At Manor Tax, we have guided expat clients through successful applications, helping them save thousands while avoiding common pitfalls.

Our team of bilingual tax specialists can:

  • Assess your eligibility based on your specific circumstances
  • Structure your relocation timing for maximum benefit
  • Handle the complete application process
  • Provide ongoing tax compliance support
  • Collaborate with your employer by providing payroll services

Want to know exactly how much you could save? Contact us for a personalized Beckham Law assessment. Our tax specialists will analyze your specific situation and show you how to maximize your benefits under Spanish special expatriate tax regime.