The Beckham Law (Ley Beckham) is a special tax regime in Spain that offers significant tax benefits to qualified foreign workers and high-skilled professionals relocating to Spain. Here are the key details:
🎯 What is the Beckham Law?
The Beckham Law (Ley Beckham) is a special tax regime in Spain that offers significant tax benefits to qualified foreign workers and high-skilled professionals relocating to Spain. It allows qualifying expatriates to be taxed as non-residents for income tax purposes, enabling them to pay a flat tax rate of 24% (instead of the progressive resident tax rates that can go up to 45%) on Spanish-sourced income.
Key Eligibility Criteria:
🛑 You must not have been a tax resident in Spain in the 5 years preceding your move.
💼 You’re moving to Spain to work for a Spanish company or as an employee.
🔬 The work performed is considered “high-value” professional services.
Specific Eligibility for Different Nationalities:
🇪🇺 EU Citizens: Eligible if meeting the work and residency requirements.
🇬🇧 UK Citizens: Can apply post-Brexit if meeting conditions.
🇺🇸 US Citizens: Eligible if meeting professional and residency criteria.
Tax Benefits 💰:
📌 Flat 24% tax rate on Spanish-sourced income.
📌 Only Spanish-sourced income is taxed.
📌 Potential exemption for income earned outside Spain.
📌 Applicable for up to 6 tax years.
Important Limitations ⚠️:
🔑 Must be employed or have a work contract in Spain.
🚫 Not applicable for independent contractors.
💵 Income must be primarily from employment.
📝 Must apply within the first 6 months of becoming a tax resident.
🛠️ Application Process:
1️⃣ Obtain a work permit/contract in Spain.
2️⃣ Register as a tax resident.
3️⃣ File form 149 to opt into the special tax regime.
4️⃣ Maintain eligibility conditions for 6 consecutive tax years.
Recommended for:
👨💻 Highly skilled professionals
👩💼 Executives
💻 Tech workers
🏃♂️ Professional athletes
🔬 Researchers
🛠️ Specialized consultants
📊 Potential Savings Example:
A professional earning €100,000 annually might save significantly compared to standard progressive tax rates, potentially reducing their effective tax rate by 15-20%.
📌 Recommendation:
Always consult with a local tax advisor who specializes in expatriate taxation, as individual circumstances can vary significantly.