«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. There is one key exception: all your employment income, even for work done abroad, is treated as earned in Spain.

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
• 19% to 30% on dividends, interest and gains from selling assets, which have their own scale

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 move for an employment contract, with the exception of professional sportsmen and women, who are governed by their own regulations. Moving to become a company director, to run a business classed as entrepreneurial or to work as a highly qualified professional for start-ups or in training, research, development and innovation also qualifies.
• The employment contract does not have to be with a Spanish company: having an employer in Spain, being assigned to Spain by your employer (with an assignment letter) or working remotely using only telematic means all qualify.
• Regarding the administrators of an entity: if the entity is a holding company (entidad patrimonial), 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). If the company is not a holding company, there is no such limit.
• You must not obtain income through a permanent establishment located in Spain, that is, a fixed place in Spain from which you run your own business, such as an office or premises. If you do, you cannot opt for the regime, unless that income comes from your entrepreneurial activity or your work as a highly qualified professional.
• There is no cap on income from work abroad: the old 15% limit was removed in 2015. All your employment income, including pay for work done abroad, is treated as earned in Spain.
• You must live in the common tax territory. If your habitual residence will be in the Basque Country or Navarre, your income tax is governed by their own regional (foral) rules and this State regime does not apply.

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, unless their business is classed as entrepreneurial or they are highly qualified professionals working for start-ups or in training, research, development and innovation.
• Professional sports athletes.
• Directors of a holding company (entidad patrimonial) with a stake of 25% or more.

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 the first 6 months from the start date of your activity shown in your registration with the Spanish Social Security (or in the documents that let you keep your home country's 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
• Document from your employer confirming the employment relationship, or the assignment letter

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, unless their business is classed as entrepreneurial or they are highly qualified professionals working for start-ups or in training, research, development and innovation.
– Professional sportsmen.
– Directors of a holding company (entidad patrimonial) with a stake of 25% or more.

Yes. The waiver is filed on form 149 during November and December and takes effect from January of the following year; once you waive the regime, you cannot opt for it again. If you stop meeting any of the conditions, you are excluded from the regime and must report it on form 149 within one month.

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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