The so-called “Beckham Law” is the special tax regime for people who move to Spain for work and become Spanish tax residents. Those who opt for it remain personal income tax (IRPF) taxpayers, but calculate the tax under the rules of the Non-Resident Income Tax: a flat rate of 24% on employment income up to €600,000 and, in general, they are only taxed on income obtained in Spain. It is governed by Article 93 of the Personal Income Tax Act and Articles 113 to 120 of its Regulations.
In brief
- For people who move to Spain and have not been tax resident here in the previous five years.
- It lasts for the year of the move and the following five years.
- Employment income and other general income: 24% up to €600,000 and 47% above that.
- You apply with Form 149 within six months of registering with Spanish Social Security.
- The annual tax return is filed on Form 151.
Who can apply
Under Article 93.1, a person who becomes tax resident in Spain as a result of moving to Spain may opt for it if they meet these conditions:
- Not having been resident in Spain during the five tax periods before the year of the move.
- The move, in the first year of the regime or the year before, must be due to one of these reasons: an employment contract with an employer in Spain (or a move ordered by the employer, or remote work, including holders of the international teleworking visa); becoming a director of a company (with limits if it is a holding company); an entrepreneurial activity; or being a highly qualified professional who provides services to start-ups or carries out training, research, development and innovation activities.
- Not earning income through a permanent establishment in Spain, except in the cases of entrepreneurial activity and highly qualified professionals.
Professional athletes under the special employment relationship of Royal Decree 1006/1985 are excluded.
How you are taxed
Under Article 93.2 , the following special rules apply:
- Income obtained in Spain during the year is added up, without offsetting one item against another.
- All employment income and, where applicable, income from the entrepreneurial activity obtained during the regime is deemed to be obtained in Spain.
- The general tax base is taxed at 24% up to €600,000 and 47% from €600,000.01.
- Dividends, interest and capital gains are taxed on the savings scale: from 19% to 30%.
- Withholding on salaries is 24% (47% on amounts paid by the same payer above €600,000 a year).
In addition, those who opt for this regime pay Wealth Tax on a non-resident basis, that is, only on assets and rights located in Spain.
Your family can also apply
Your spouse and children under 25 (or of any age if they have a disability), or the other parent if you are not married, may opt for the same regime if they move with you or later, within its first year of application, become tax resident in Spain and the sum of their taxable bases is lower than yours (Article 93.3).
Deadline and how to apply
The option is notified to the Spanish Tax Agency on Form 149 within a maximum of six months from the start date of the activity shown in your registration with Spanish Social Security or in the documents that allow you to keep the social security of your home country (Article 116 of the Personal Income Tax Regulations). For family members, the deadline is six months from their arrival in Spain, or the main taxpayer’s deadline if later. The notice must be accompanied by the documents listed in Article 119, such as the employer’s document confirming the employment relationship and the registration date.
Every year, those in the regime file their personal income tax return on Form 151.
Opting out
You can opt out of the regime during November and December before the year in which it is to take effect, and anyone who opts out cannot apply again (Article 117 of the Regulations).
How we help you
We assess whether your case fits the regime before you move, prepare and file Form 149 on time and take care of your Form 151 every year. We meet in Barcelona or by video call, in Spanish and English. You can book your first consultation or see our service for Beckham Law.
Legislation
- Law 35/2006, of 28 November, on Personal Income Tax, Article 93.
- Royal Decree 439/2007, of 30 March, Personal Income Tax Regulations (Articles 113 to 120).
- Order HFP/1338/2023, of 13 December, approving Forms 149 and 151. Spanish Tax Agency: Form 149 and Form 151.
This article is for information only and is not a substitute for advice on your specific case.