The “Beckham Law” is a special tax regime in Spain designed to attract foreign talent and capital to the country. This regime allows individuals who relocate to Spain for work or entrepreneurial reasons to benefit from significant tax advantages. Among the key benefits of the “Beckham Law” is the opportunity to pay a flat tax rate of 24% on the first €600,000 of annual employment income, while income exceeding this amount is taxed at 47%. Under the general tax regime, individuals with high incomes are typically subject to progressive rates that can reach or exceed 47%. Consequently, the flat 24% rate represents a significant tax saving for beneficiaries of this law. Additionally, it exempts from taxation capital income generated abroad (such as dividends, interest, or rental income) as well as wealth held outside of Spain.
This regime is recommended for individuals with annual incomes exceeding €60,000, those with substantial wealth, or individuals who generate capital gains abroad. To qualify for the “Beckham Law,” applicants must relocate to Spain for work or entrepreneurial purposes, acquire fiscal residency in the country, and not have been a tax resident in Spain in the previous five years. This regulation applies to both foreign nationals and Spanish nationals who meet these criteria, without any restrictions based on nationality.
For more information on the details of the “Beckham Law,” its tax benefits, and its implications for individuals considering a move to Spain, you can download the comprehensive analysis prepared by our team. This document, authored by Álvaro Crespo and Lidia Bazán, specialists in Tax Law at our firm, provides an in-depth guide to the fiscal framework of the “Beckham Law.”