he Beckham Law is a special tax regime in Spain designed to provide expatriates with significant tax advantages when they move to the country for work. Officially regulated under Decree 687/2005, this regime was initially introduced to attract international talent, inspired by the arrival of football star David Beckham at Real Madrid. Below, we’ll explain how this tax regime works, its requirements, and its benefits.
The Beckham Law offers expatriates relocating to Spain a favorable tax regime for the first six years of residence. It ensures that foreign professionals, including company directors and highly skilled workers, are taxed as non-residents on their income, leading to reduced tax rates and exemptions on foreign earnings.
To qualify for the Beckham Law, you must meet the following criteria:
1. Work in Spain:
2. Recent Residency:
3. Apply within Six Months:
1. Reduced Income Tax:
2. Non-Resident Status for Tax Purposes:
3. Capital Gains Tax:
4. Five-Year Duration:
The process to apply for the Beckham Law is straightforward and typically completed online.
Here’s how it works:
After the sixth year, you will transition to Spain’s general tax regime as a resident taxpayer.
Only gains earned within Spain are taxed, making the regime particularly advantageous for expatriates with significant foreign investments.
This regime offers expatriates significant tax savings, especially for high-income professionals or directors relocating to Spain. It simplifies tax obligations, particularly for those with substantial assets or income abroad.