Beckham Law
If Spain is your desired destination to work and/or for your business development, the Beckham Law is specially designed for you for two main reasons:
- You will save taxes by paying a flat rate of 24% instead of the progressive rate
- You will only pay taxes on income from origin in Spain, excluding the profitability of the assets you have abroad.
In summary, Beckham Law is a special tax regime for expats that will generate great advantages for you working or establishing your company in Spain:
- Save taxes compared to a resident of Spanish nationality
- Tax as a non-resident only on income generated in Spain for a period of 6 years or more
Requirements of the Law
It is known as Beckham Law as the first person who benefited from it was the football player David Beckham in 2003.
Better technically known as the Special Regime for workers posted to Spanish territory in the Personal Income Tax Law, you can benefit from it if:
- You have not had tax residence in Spain during the last 5 years.
- You do not have a self-employed activity as a self-employed person or freelancer.
- You must have a new job that justifies the relocation to Spain
- You must meet a series of deadlines for relocation, application for the regime or the beginning of work activity
Taxes
The Beckham law allows you to pay taxes at a lower tax rate than any other person in Spain with similar income would pay.
Some of the benefits involved:
- Lower tax rates, you will only pay 24% up to a maximum of 600,000 EUR
- Tax only on income generated in Spain, excluding those generated abroad
- The amount that exceed 600,000 EUR is taxed at 47%
- Wealth Tax is only taxed on assets that are in Spain
- It is not mandatory to present Form 720
Where to apply for it?
To make the most from this special regime, you must inform the Spanish Tax Agency
To do this, you must present the following documents:
- Form 149
- Passport and NIE (Foreigner’s identification number)
- Social Security Number
- Employment contract with a Spanish company