Beckham Law will truly help you to save taxes should you be interested in moving to Spain to work. Fortunately for all expats, Spanish Beckham law (whose regulation you can consult here) creates great opportunities to save money in taxes both for them and their families. Our team in Golden Partners explains to you how to apply for the Beckham Law in Spain and assist you on the process.
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What is the Beckham Law in Spain
The Beckham Law is the name given to a special regime for workers displaced to Spanish territory in the Personal Income Tax Law and which offers a series of tax benefits to those who move their residence to Spain for work or investments (i.e., foreign income, salary received for moving to Spain or capital gains obtained as Spanish tax resident).
This special tax regime was named after the former Real Madrid footballer, David Beckham, who was one of the first taxpayers to benefit from it.
Beckham Law's tax benefits
The new Beckham Law today benefits both foreigners who have moved to Spain, as well as the expatriate Spaniards themselves who return after having had their tax residence abroad for 10 years. Specifically, these are your benefits during the tax period in which Spanish tax residence is acquired and the following five:
1. Taxation of income generated in Spain
The worker displaced to Spain will only be taxed in Spain on income from Spanish sources, that is, by those generated in Spanish territory during their stay. You will not be taxed on income produced abroad, normally generated in your country of origin.
2. Personal income tax rate at 24%
You will save taxes by paying a flat rate of 24% instead of the progressive rate. From EUR 600,001 onwards, at 47%.
3. Wealth tax only for assets located in Spain
The impatriate must file a Wealth Tax declaration in Spain but only for the assets that are in Spanish territory and taking into account that in some regions such as the Community of Madrid, the exemption percentages are considerable.
4. Model 720 is not mandatory
Those displaced to Spanish territory who acquire tax residence in Spain are not required to present form 720 (formal information declaration of assets and rights located abroad) as other tax residents, including Spaniards, must do.
5. Tax benefits for the spouse and children of the impatriate
The spouse of the main taxpayer and their children under 25 years of age (or any age in case of disability) can choose to pay the Spanish Non-Residents Income Tax, however maintaining their status as Spanish tax residents. Thus, the family of the impatriate can pay tax at lower tax rates than the marginal Personal Income Tax rate (depending on the type of income). They only have to travel to Spain with the main taxpayer and acquire tax residence here.
Beckham Law's requirements
The Beckham Law in 2024 requires compliance with the following requirements:
- Not having had tax residence in Spain during the last 10 years
- Not having a self-employed activity as self-employed or freelance
- Have a new job that justifies the move to Spain
- Comply with a series of deadlines for moving, applying for the regime and beginning work in Spain
How to apply for the Beckham Law
To achieve the maximum benefits of this special tax regime, you must inform the Spanish Tax Agency. To this end, you must provide the following documentation:
- Form 149
- Passport and NIE (Foreigner’s identification number)
- Social Security Number
- Employment contract with a Spanish company
At Golden Partners, as expert lawyers in taxation and immigration, we offer you the necessary legal advice to make the best decision for you and your family, avoiding risks and complying with Spanish and European legislation. For instance, a special form must be submitted to the Spanish Tax Agency (Model 151) when declaring income tax.
We know how to help you move to our country with the Beckham Law in Spain.
At Golden Partners, we know how to take care of your assets. We remain at your entire disposal in our contact form. Do not hesitate to write to us in English, French or Spanish.
