«The Beckham Law» or how to save taxes in Spain if you are a foreigner

Tax benefits

The Beckham Law offers attractive tax advantages for both employees and companies hiring international talent. The key benefit? Even if you spend more than 183 days in Spain, you’re taxed only on income earned within Spanish territory—not on your global income.

The tax rate is also appealing:

• 24% flat rate on income up to €600,000
• 47% on any amount above that, according to the Spanish Tax Agency

Originally, this regime aimed to attract skilled professionals and entrepreneurs, and gained fame because David Beckham was one of the first high-profile beneficiaries (hence the name). However, after several reforms, professional athletes are now excluded and governed under their own tax framework (Royal Decree 1006/1985).

Requirements

• The expatriate cannot have been resident in Spain for the last 5 years. This five-year prior non-residence requirement is set out by the Spanish Tax Agency.
• Must have an employment contract. With the exception of professional sportsmen and women who are governed by their own regulations.
• This employment contract must be signed with a Spanish company.
• Regarding the administrators of an entity: they cannot own a stake that classifies the company as a related entity (25% or more under Article 18 of the Corporate Income Tax Law, as explained by the Spanish Tax Agency) for the law to be applicable and thus be able to benefit from the tax saving.
• It does not apply to income obtained through a permanent establishment located in Spain.
• The core of the employees’ professional activity must be in Spain. However, it is possible to obtain work and income from abroad, as long as it does not represent more than 15% of the total income.

Who can apply for the application of this law?

Basically any foreigner who moves to Spain and who is under the following situations:

• Foreign workers who have just moved to Spain.
• Expatriates with high incomes who occupy executive or management positions.
• Administrators who come to work in a company.

In contrast, the following individuals are excluded:

• Self-employed workers.
• Professional sports athletes.
• Directors of business entities.

How to apply for the Beckham Law

Once it has been verified that the established requirements have been met, the application must be submitted through form 149 within thefirst 6 months of registration as an employee of a Spanish company.That is to say, from the date of registration with the Social Security, as established by the Spanish Tax Agency. Otherwise, if there is a delay, the application and its privileges may be denied.

In addition, the Tax Agency must be informed by means of the form 149 filling in the following data:

• Passport and NIE
• Social security number
• Employment contract with the Spanish company

From that moment on, the taxpayer will enjoy the benefits of this law for a period of 6 years during which he/she will have to formalize his/her non-resident tax returns annually by means of form 151.

FAQs

Straightforward answers to the things everyone asks.

In essence, any foreign person who moves to Spain and is in any of the following situations:
– Foreign workers recently arrived in Spain.
– Expatriates with high income who occupy executive or management positions.
– Administrators coming to work in a company.
On the other hand, the following individuals are excluded from this law:
– Self-employed individuals.
– Professional sportsmen.
– Company directors.

Both the waiver or exclusion from the special regime must be communicated to the tax authorities by filing form 149 within a maximum period of six months from the date of commencement of the activity recorded in the registration with the Social Security in Spain.
The taxpayer may opt for the national regime as long as this is done during the months of November and December and with application from January of the following year, with the consequence that it will no longer be possible to opt for it again.

Beckham Law and the income tax return

If you’re covered by the Beckham Law, you don’t file the standard tax return like most residents. Instead, you’re required to submit Form 151 electronically, within the official income tax filing period each year.

Before filing, make sure you’re registered in the Census of Taxpayers. If not, you’ll need to register first by submitting Form 036.

📌 Remember: being under this special regime means you skip the regular IRPF return and handle everything through Form 151.

At TaxDown, we take care of all the steps for you—from registration to filing—so you can save time, avoid errors, and take full advantage of your tax benefits. Questions? Reach us anytime at support@taxdown.es.

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