What Is the Beckham Law?
The Beckham Law (officially Regimen Especial de Trabajadores Desplazados, or Article 93 of the Spanish Income Tax Law) is a special tax regime for individuals who move to Spain for work. Named after David Beckham, who famously benefited from it when he joined Real Madrid, the law allows qualifying new residents to be taxed as non-residents for up to six tax years.
Key Tax Benefits
- Flat 24% income tax rate on Spanish-sourced income up to €600,000
- Income above €600,000 taxed at 47%
- Foreign-sourced income is generally exempt from Spanish tax (except dividends, interest, and capital gains from foreign sources, which are taxed at specific rates)
- No wealth tax on assets located outside Spain
- No obligation to report foreign assets (Modelo 720)
Compare this to the standard Spanish progressive tax rates, which range from 19% to 47% depending on your autonomous community. For someone earning €80,000, the savings can be substantial.
Who Qualifies?
To be eligible, you must meet all of the following conditions:
- You have not been a Spanish tax resident in the previous five tax years
- Your move to Spain is motivated by an employment contract or a company directorship (with ownership limits)
- The work is performed in Spain (at least partially)
- The employer is a Spanish entity or a foreign entity with a permanent establishment in Spain
Since the 2023 Startup Law, digital nomad visa holders and certain entrepreneurs also qualify, broadening the scope significantly.
Application Process
You must apply within six months of starting work in Spain. The application is made to the Spanish tax authority (Agencia Tributaria) using Form 149. Required documents include:
- Form 149 completed and signed
- Copy of your employment contract or company appointment
- Copy of your NIE and social security registration
- Proof of registration as tax resident in Spain
The tax authority typically responds within one month. Once approved, you file annual tax returns using Form 151 instead of the standard Form 100.
Duration and Renewal
The regime applies for the tax year of your move plus the following five tax years. There is no renewal. After six years, you revert to the standard Spanish tax system. Plan your finances accordingly for this transition.
Implications for Dutch Expats
The Netherlands and Spain have a double taxation treaty. Under the Beckham Law, your treatment differs from standard residents when it comes to treaty benefits. Consult a tax advisor who understands both Dutch and Spanish tax law to optimize your position. Key considerations include pension taxation, investment income, and the treatment of Dutch property.
Use our free calculator to estimate your total costs and see how the Beckham Law could affect your tax position in Spain.
Common Pitfalls
Missing the six-month application window is the most common mistake. You lose this benefit permanently if you apply late. Also note that the Beckham Law affects your double taxation treaty position, sometimes unfavorably for certain income types. Professional tax advice is essential.