If you’re planning to relocate to Spain, whether through your employer or by working remotely under the Digital Nomad Visa, it’s worth exploring one of the country’s most attractive tax incentives: the Beckham Law.

What Is the Beckham Law?

The Beckham Law, officially known as Spain’s Special Expat Tax Regime (Régimen fiscal aplicable a los trabajadores desplazados a territorio español), allows eligible foreign workers to pay a flat 24% tax rate on Spanish income up to €600,000 per year for up to six years.

Any income earned outside of Spain is generally exempt from Spanish taxation, making the regime especially appealing for international professionals, remote workers, and executives relocating to Spain.

The nickname “Beckham Law” comes from soccer legend David Beckham, who famously benefited from it after joining Real Madrid in 2003.

How does the Beckham Law work?

The Beckham Law is designed to tax only income earned in Spain, excluding most income generated abroad. Under this regime, expatriates are treated as nonresidents for tax purposes, meaning they pay taxes only on income from Spanish sources rather than on their worldwide earnings.

Key benefits include:

• Flat 24% tax rate on Spanish income up to €600,000

• 47% rate on income above €600,000

• No tax on foreign income, such as dividends, interest, or rental earnings outside Spain

• Valid for six tax years (the year of arrival plus the next five)

There is, however, an important exception. Any employment or business income earned while the Beckham Law is in effect is considered to be obtained in Spain—even if the work was performed abroad. This means that income is still subject to Spanish tax. To avoid double taxation, Spain allows a deduction for foreign taxes already paid, as long as certain conditions are met.

Income earned before moving to Spain or after leaving the country is not covered by the Beckham regime, unless it’s considered Spanish-sourced under general tax rules. It’s also important to note that capital gains and investment income earned in Spain may be subject to tax at rates ranging from 19% to 28%.

For many high-earning professionals, the Beckham Law can offer significant tax advantages. But for those with lower or primarily local income, Spain’s progressive tax system might actually be more beneficial. It’s also worth noting that those under the Beckham regime don’t qualify for some common Spanish tax deductions or double-taxation treaty benefits, which can be a key factor when planning finances internationally.

New development: Property ownership now under scrutiny

A recent development has raised concerns for Beckham Law participants who own property in Spain. According to new interpretations by Spanish tax authorities, expats covered under the Beckham Law may now be taxed on the “imputed income” of their primary residence—even if they own and occupy it themselves.

This means that if you purchase a home in Spain while under the regime, the notional rental value of that property could be treated as taxable income, similar to how nonresidents are taxed on second homes or investment properties.

The issue has drawn European Union scrutiny, as critics argue that taxing expats under the Beckham regime as if they were nonresidents while also taxing their personal residence could create double taxation risks and discourage foreign investment.

Tax experts recommend that expats under the Beckham Law review their property ownership structures and seek professional advice to avoid unexpected tax liabilities.

Who should consider it?

The Beckham Law can be particularly beneficial for:

• Foreign workers who relocate to Spain to perform an economic activity or take up employment.

• Expatriates in managerial or executive roles, considered employees or administrators under the law.

• Remote workers who move to Spain to work for a foreign employer.

• Highly qualified professionals who provide services to start-ups or engage in research, development, and innovation (R&D&I) activities, earning at least 40% of their income from these services.

• Company administrators who assume roles in Spain, provided they own no more than 25% of a company classified as asset-managing. Those who exceed that threshold may still qualify if the company carries out active business operations (for example, through a wholly owned limited liability company, or SL); or, if they apply under a startup or entrepreneur visa.

• Family members of qualifying remote workers, including spouses and dependents.

While Spain’s Beckham Law offers notable tax benefits for expatriates, certain groups are excluded. Freelancers and self-employed workers, including holders of a digital nomad visa, do not qualify. Professional athletes are also ineligible, regardless of income or status.

Because of these complexities, it’s best to consult an international tax advisor to assess whether the Beckham Law fits your situation.

Who can apply for the Beckham Law?

You may be eligible if you:

• Haven’t been a tax resident in Spain during the previous five years

• Move to Spain for work, such as a job transfer, a new employment contract, or as a company director (with certain restrictions)

• Apply within six months of registering with Spanish Social Security or starting your employment

Remote workers may also qualify if they have a formal employment relationship with a foreign company that allows them to work from Spain.

How to apply for the Beckham Law

1. Check your eligibility

   Make sure you meet the requirements: you haven’t been a Spanish tax resident in the past five years and have an employment contract with either a Spanish company or a foreign company assigning you to Spain.

   
   

2. Get your Spanish Foreign Identity Number (NIE)

   Apply for your NIE, required for all tax and financial matters in Spain. The process can take several weeks, depending on appointment availability.

   
   

3. Register with the Spanish tax authorities

   Before applying for the special regime, complete Form 030 with the Agencia Tributaria. This step officially records your tax status, assigns your tax ID number, and ensures your income is taxed correctly.

   
   

4. Apply for the Special Expat Regime

   Fill out Form 149 to request inclusion in Spain’s Special Expat Tax Regime (Beckham Law). Double-check your information, and consider seeking help from a tax advisor.

   
   

5. Submit your application online

   You can file Form 149 electronically through the Agencia Tributaria’s online portal.

   
   

6. Wait for approval

   Processing typically takes one to two months, though it can vary. Once approved, you’ll be taxed as a nonresident for up to six years.

Should you apply for the Beckham Law?

For professionals relocating to Spain, the Beckham Law can significantly reduce tax costs and simplify reporting. However, with recent changes affecting property ownership and imputed income taxation, it’s more important than ever to seek expert tax advice.

A qualified advisor can help ensure your move to Spain remains both financially efficient and compliant with evolving tax regulations.