Non-resident status: The applicant must not have been a Spanish resident in the last 5 years before moving to Spain.

Eligible condition:

No Income from any worldwide businesses: The individual must not derive income from any business that could be understood as freelance income under the Spanish rules unless they work under a formal employment contract.

High-level executives and skilled workers: Although the regime initially targeted highly skilled professionals, recent amendments now allow more general foreign workers to apply, provided they meet the other criteria.

Spouse and kids can be included under the main Beckham Law regime applicant.

Reduced tax rate: The 24% flat rate on the first €600,000 significantly reduces tax liability for high-income expatriates compared to Spain's progressive tax scale.

Exemption on foreign income: Non-Spanish sourced income is not subject to Spanish income tax under this regime, allowing expatriates to retain the full benefit of their foreign earnings.

Wealth tax and temporary solidarity tax on large fortune exemptions: Non-residents are generally only taxed on assets located within Spain, exempting Beckham Law beneficiaries from Spanish taxes on foreign wealth.

Application deadline: Applications must be submitted within six months from the start date they are in any eligible situation.

Submission process: Complete and submit Form 149 to the Spanish tax authorities. This form declares the intent to apply for the Beckham Law and must include details about employment, proof of residency outside of Spain for the prior 5 years, and proof of the eligible condition.

Annual Tax filing: Those accepted into the Beckham Law regime will need to file their annual tax return using Form 151, rather than the usual Form 100 that residents use. This ensures that they are taxed according to the non-resident flat rate and are not subject to progressive resident tax rates.

Supporting documentation: The application may require proof of residency outside Spain for the previous 5 years, employment contracts, and statements from the employer regarding the purpose of the individual’s relocation to Spain.

No deductions for personal expenditures: As non-residents, individuals under the Beckham Law cannot benefit from certain tax deductions available to Spanish residents, such as deductions for housing or family expenses.

Exit strategy: The Beckham Law provides tax benefits for only six years. After that period, individuals are taxed as residents, potentially facing a much higher tax rate.

Impact on Social Security contributions: Beneficiaries of the Beckham Law are subject to Spanish social security contributions if they are employed by a Spanish company. However, there may be exceptions based on bilateral agreements with other countries.

Ineligibility for some professions: Freelancers, self-employed workers, and those with significant business interests in Spain may find themselves ineligible.

Eligibility assessment: We’ll assess your situation to determine if you qualify for the Beckham Law under the latest criteria, including those introduced by the 2023 Startup Law. This includes analyzing your employment, residency history, and specific conditions as a freelancer, remote worker, or entrepreneur.

Comprehensive application support: From gathering the required documentation to filing Form 149 with the Spanish Tax Agency, we handle the entire application process. We make sure your application is accurate, timely, and in compliance with all requirements, giving you the best chance for approval.

Tax efficiency and optimization: Our international tax attorneys are well-versed in the intricacies of the Beckham Law and Spanish tax regulations. We’ll advise you on structuring your income to maximize the regime’s benefits, including strategies for managing foreign income, deductions, and other assets.

Guidance on related benefits: Our team helps you take advantage of additional benefits that may apply, like exemptions on foreign income and wealth tax on non-Spanish assets. We ensure that you understand the full range of advantages under the Beckham Law and how they apply to your unique financial situation.

Personalized, expert support: Our team’s deep understanding of the Beckham Law means we can provide personalized advice and clear answers to any questions you may have, simplifying even the most complex tax matters.