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

Thanks to the so-called ‘Beckham Law’ or ‘Impatriate Law’, foreigners who come to work in Spain pay less tax and do not have to declare their earnings in other countries. And so much for the summary in a single sentence. If you want to know more, we recommend you read on 😉.  

What is the Beckham Law?

The Beckham Law, officially known as the Impatriates Regime, is a special tax scheme regulated under Article 93 of the Spanish Personal Income Tax Law (IRPF), introduced in 2004.

It’s designed for professionals who move to Spain for work and become tax residents. Under this regime, they can opt to be taxed like non-residents, even though they live in Spain for more than 183 days. This means they pay tax only on income earned in Spain, not worldwide income. The regime applies for the year they arrive and the following five years, offering significant tax advantages.

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
• 45% on any amount above that

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).

David has just saved €482 on his tax return thanks to the Beckham Law.

Learn how to save >

Requirements

• The expatriate cannot have been resident in Spain for the last 5 years.
• 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 more than 24% of the company 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 the first 6 months of registration as an employee of a Spanish company.That is to say, from the date of registration with the Social Security. 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.

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.