What is the Beckham Law and what are the requirements to apply it when moving to Spain?

The so-called Beckham Law (Ley Beckham) is the special tax regime for people relocating to Spain, set out in Article 93 of Law 35/2006 on Personal Income Tax (IRPF) and developed in the IRPF Regulations. Those who opt in are tax resident in Spain but are taxed under rules very similar to those of Non-Resident Income Tax.

Main requirements

• Not having been tax resident in Spain in any of the five tax years before the move.
• The move must be for one of the qualifying reasons: an employment contract (including remote working for a company using digital means), becoming a director of a company (with shareholding limits if it is an asset-holding company), carrying out an innovative entrepreneurial activity, or providing services as a highly qualified professional to start-ups or in training, research or development activities, on the terms set by law.
• As a general rule, not earning income through a permanent establishment in Spain, except in the permitted cases.

Since 2023, the regime can also be extended to the spouse and children who move with the main applicant, provided they meet the legal conditions.

Deadline to apply

You opt in by filing Modelo 149 (Beckham Law application form) within six months of the start of the activity shown in your registration with Spanish Social Security (or in the documents allowing you to remain under your home country's social security). If you miss the deadline, the regime cannot be applied.

How you are taxed

• Duration: the year in which you become tax resident in Spain and the following five.
• Employment income: 24% up to €600,000 and 47% on the excess.
• Dividends, interest and capital gains from the sale of assets: taxed at the specific savings rates set out in Article 93.
• Other foreign-source income, apart from employment income, is generally not taxed in Spain.
• The annual return is filed on Modelo 151, not on Modelo 100 (the standard Spanish income tax return).
• For Wealth Tax (Impuesto sobre el Patrimonio), only assets and rights located in Spain are taxed.

Points to bear in mind

The regime does not allow the deductions or the personal and family allowances of the standard income tax, so it is not always the better option: it is worth comparing both before opting in. In addition, later changes to your employment relationship or how you invoice may put the regime at risk, so it is advisable to review them with an adviser before making them.