What is Spain Beckham Law?

How it works

The "Beckham Law" — formally Régimen Especial para Trabajadores Desplazados (Article 93 of the Spanish Personal Income Tax Law, IRPF) — was introduced in 2005 and has since become a magnet for inbound executives, tech professionals, and (since 2023) digital nomads.

Core mechanic: a Spanish tax resident who qualifies under the regime is taxed as if a non-resident on Spanish-source income for 6 years (year of arrival + 5 following years). Foreign-source income is exempt from Spanish tax during the regime.

Spanish-source income tax under the regime:

• 24% flat rate on Spanish-source income up to €600,000.
• 47% flat rate on the excess above €600,000.
• No personal allowances or family deductions during the regime — the 24% applies on gross.

Eligibility (post-2023 expansion)

The regime was expanded in late 2022 (Startups Act / Ley 28/2022, in force from 1 January 2023). Current conditions:

1. Not Spanish tax resident in the 5 prior tax years (reduced from 10 years pre-2023).
2. Move to Spain triggered by:
   • Employment contract with a Spanish employer (including remote-work for foreign employer if Spanish-tax-resident), OR
   • Director appointment at a Spanish company (≤ 25% ownership of the company), OR
   • Digital nomad activity (post-2023 expansion) — high-skill remote work for non-Spanish employers, OR
   • Highly qualified self-employed or "innovative entrepreneurial activity".
3. Apply within 6 months of becoming Spanish tax resident.

Family extension (post-2023)

Spouse and dependent children under 25 can also opt into the regime as long as they meet the same non-residence prior period condition and family income doesn't exceed thresholds.

What's included

• Spanish-source employment / business income: 24% flat (up to €600k).
• Spanish-source other income: standard Spanish progressive rates apply (interest, dividends, rentals).
• Foreign-source income: exempt from Spanish IRPF during the regime.
• Foreign assets: exempt from Spanish wealth tax (in regions where wealth tax applies).
• No Modelo 720 foreign-asset reporting obligation during the regime.

What's NOT included

• Spanish-source dividends, interest, capital gains: standard rates apply (19%–28% progressively).
• Spanish-source rental income (from Spanish real estate held by the regime resident): standard rates.
• After year 6, full standard Spanish taxation applies — and foreign-source income comes back into scope unless the resident leaves Spain.

Examples

• Indian SaaS founder hired by a Spanish startup at €200k/year. Eligible (not Spanish-resident in 5 years, employment contract). Opts in. €200k taxed at 24% = €48k Spanish tax. Foreign dividends and capital gains: exempt. After 6 years, Spain rates jump to standard (47% top). Plans to relocate to Italy lump-sum or UAE before year 7.
• British digital nomad working for non-Spanish clients at €120k/year. Post-2023 expansion qualifies under the digital nomad / freelance limb. Opts in. €120k Spanish-source (under freelance for Spanish-tax purposes) taxed at 24%. Foreign-source side projects: exempt.

Common mistakes

• Missing the 6-month application window. Filing late means default standard Spanish taxation; the regime can't be retroactively claimed.
• Confusing the 24% rate with all-in tax. Spanish-source dividends, interest, and capital gains stay at standard rates (19%-28%). The 24% covers employment / business income only.
• Forgetting the year-6 cliff. Standard Spanish tax (47% top + autonomous community surcharge in some regions) hits at year 7. Plan exit or alternative regime well before.
• Overlooking the 25% director-ownership cap. A founder who is also majority shareholder of the Spanish company they're directing is disqualified from Beckham. Workaround: structure the equity below 25% (with valid commercial rationale).