The Beckham Law in Spain: who qualifies and how to apply

The Beckham Law in Spain: who qualifies and how to apply

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Taking a job in Spain raises one question very quickly: what your tax bill will look like. For a lot of expats, the answer comes down to one special rule — the impatriate regime, commonly called the Beckham Law.

The idea is straightforward: rather than paying progressive resident rates on everything you earn globally, you are taxed like a non-resident on the income you earn in click Spain, at a flat rate of 24 percent on the first 600,000 euros and 47% above that. If your salary is significant, the difference is substantial.

Not everyone qualifies. As a general rule, you must not have been a Spanish tax resident in the five years before the move, your relocation must be linked to an employment contract or a director role, and the activity must be performed principally on Spanish territory. The latest changes opened the door to remote workers and certain entrepreneurs.

Timing is the part people get wrong. You have to apply within six months of starting the activity that triggers residence. Let that window close and you cannot recover it later. Once granted, it applies for a total of six tax years.

It is not automatically the better option. Where a large part of your wealth sits abroad, the effect on wealth tax and on the 720 declaration needs to be modelled first. A short analysis before applying is usually time well spent.

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