Spain's Beckham Law: requirements, deadlines and what it actually saves you

Spain's Beckham Law: requirements, deadlines and what it actually saves you

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Relocating to Spain raises one question very quickly: how much tax will you actually pay. For a lot of expats, the answer comes down to one special rule — the special expat tax regime, commonly called the Beckham Law.

The idea is straightforward: instead of being taxed as a Spanish resident on your worldwide income, you are taxed like a non-resident on the income you earn in Spain, at a flat rate of 24% up to 600,000 euros and 47% above that. For higher earners, the difference is substantial.

The conditions are strict. In broad terms, you must have been non-resident in Spain for the previous five tax years, the move has to be tied to a job offer, a posting or a company directorship, and the activity must be performed principally on Spanish territory. The latest changes click have widened the scope to remote workers and certain entrepreneurs.

Timing is the part people get wrong. You have to apply within six months of registering with Spanish social security. Miss it and you cannot recover it later. Once granted, it applies for a total of six tax years.

It is not automatically the better option. If you have significant income outside Spain, the effect on wealth tax and on the 720 declaration needs to be modelled first. Running the numbers in advance is usually time well spent.

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