The Beckham Law Explained: Spain's Tax Regime for New Residents

The Beckham Law (officially the régimen especial de trabajadores desplazados, or special regime for inbound workers) is one of the main reasons professionals choose Spain. It can significantly reduce your tax in your first years here, but only if you apply on time.

What it does

Under the regime, you are taxed in Spain broadly like a non-resident, for the year you become resident plus the following five years:

• A flat 24% on Spanish-source employment income up to €600,000 a year (47% above that)
• Most foreign-source income is not taxed in Spain
• Wealth tax applies only to assets located in Spain

Compare that with Spain’s standard progressive income tax, where rates in Catalonia exceed 45% at higher incomes.

Who may qualify

The rules were widened in 2023. In general you must:

• Not have been tax resident in Spain in the previous five years
• Move to Spain because of:
  • an employment contract with a Spanish company, or a posting from a foreign employer
  • remote work for a foreign company, for example on the digital nomad visa
  • becoming a director of a Spanish company (with conditions)
  • certain entrepreneurial or highly qualified professional activities
• Your spouse and children under 25 may also be able to join the regime in some cases

The deadline that catches people out

You must apply (with form 149) within six months of registering with Spanish Social Security, or from the start date shown on your posting documents. Miss it and you cannot apply later.

That is why, for my clients, I track this date from day one and introduce them to an experienced tax advisor before they register, not after.

Is it right for you?

The Beckham Law is not always the best choice. For example, it may not suit someone with significant Spanish deductions or certain types of income. A good tax advisor will compare both options for your situation.

If you are planning a move and want the timing right, book a free discovery call. The Settle and Belong relocation packages include tax advisor introductions and deadline tracking.

This article is general information, not legal or tax advice. Rules change, so always confirm your situation with a qualified lawyer or tax advisor. Diana can introduce you to trusted professionals.