The Beckham Law Spain offers significant tax advantages for qualifying business owners, freelancers, and high-earning professionals moving to Spain from the US and other non-EU countries. This special tax regime allows eligible expats to be taxed as non-residents at a fixed 24% tax rate on up to €600,000 of Spanish-sourced income.
Originally introduced to attract foreign talent, the Spain Beckham Law can help expats reduce their tax burden while benefiting from Spain’s lifestyle and business opportunities.
In this guide, we’ll break down who is eligible, how to apply for the Beckham Law, and key tax benefits to help you determine whether this tax regime is right for you.
What Is the Beckham Law?
The Beckham Tax Law in Spain, officially known as the Régimen Fiscal Especial para Trabajadores Desplazados a Territorio Español, was introduced in 2005 to attract foreign professionals by offering a tax-friendly status.
On January 1st, 2023, the Spanish government expanded eligibility to a broader range of expatriates, including those employed by foreign companies. Not coincidentally, this expanded application coincided with the launch of the Spain digital nomad visa.
Under this regime, eligible expats are taxed as non-residents at a flat Beckham law tax rate of 24% on Spanish-sourced income up to €600,000. The 24% replaces the usual progressive tax system, which Spain applies at a rate of up to 47%. However, the highest marginal tax rate applies on income exceeding €600,000.
A Case Study: The Beckham Law – Applied to David Beckham in 2023
“The Beckham Law” is so-called today because David Beckham was the first high-profile person to benefit from the regime when he moved to Spain to play for Real Madrid in 2003.
When David Beckham transferred to Real Madrid, he reportedly did so on a £25 million contract. (1) Without the benefits, his extremely lucrative contract would have been taxed at the normal Spanish tax rates.
Beckham Law Eligibility Criteria
Qualifying individuals may claim the Beckham Law for themselves and qualifying family members, including their spouse and children aged 25 and under. The benefit is extended for six years, at which point standard Spain income tax rates apply.
Spanish Income Tax Rates 2025
As noted by PwC: “For general taxable income, progressive tax rates are applied (which are the sum of the applicable rate approved by the state and the applicable rate approved by each autonomous community of Spain in their progressive tax rate scales).
| Income (in euros) | Tax Rate |
| 0 to 12,450 | 19% |
| 12,450 to 20,200 | 24% |
| 20,200 to 35,200 | 30% |
| 35,200 to 60,000 | 37% |
| 60,000 to 300,000 | 45% |
| 300,000 and above | 47% |
Additionally, there are 17 autonomous communities in Spain. Tax liability may therefore differ from one autonomous community to another.
General Eligibility Requirements
The Beckham Law eligibility criteria are designed to attract highly skilled foreign professionals to Spain. To qualify, applicants must:
- Be newly tax resident in Spain with continuous residence intent and have not been a Spanish resident in the previous five years.
- Have a formal employment contract with a Spanish company or be assigned to Spain by a foreign employer. (These employment contracts are typically for highly skilled executives.)
- Be a company director with less than 25% ownership in the business or hold a start-up/entrepreneur visa. (Generally, you cannot qualify for Beckham Law if you are the employee of a company you own.)
- Be a specialized professional in research, development, and/or innovation.
Note: Athletes are no longer eligible for the Beckham Law regime.
The Beckham Law and Remote Work: Can Freelancers and Remote Workers Apply?
The Beckham Law was originally designed for employees and executives, making it difficult for self-employed professionals to qualify. However, after the 2023 updates to the Beckham Law went into effect, self-employed individuals may be able to qualify.
These recent updates to Spain’s tax regulations have expanded eligibility to include digital nomads and remote workers under certain conditions. Individuals holding a Digital Nomad Visa (DNV) may now apply for the Beckham Law’s tax benefits.
Criteria Required for Individuals to Qualify for the Beckham Law
- Self-employed professionals with innovative projects, certified by ENISA
- Highly qualified professionals working with startups or in research and development (R&D)
- Company directors who hold less than 25% of the company’s shares, provided other requirements are met
Given the complexities and evolving nature of these regulations, digital nomads and remote workers should consult a Spanish tax attorney and cross-border tax professionals familiar with both Spanish and U.S. tax laws to assess their eligibility and ensure compliance.
How to Apply for the Beckham Law
Applying for the Beckham Law requires careful planning to meet eligibility criteria and submit the necessary documentation within the required deadlines. Below is a step-by-step guide and what to expect during the process.
How to Apply for the Beckham Law
- Confirm Eligibility
- Ensure you meet the criteria, including employment by a Spanish company or qualifying under the Digital Nomad Visa.
- Verify that you have not been a Spanish tax resident in the last five years.
- Gather Required Documentation
- Copy of your passport and NIE (Número de Identificación de Extranjero).
- Employment contract from a Spanish company or proof of remote work eligibility (for digital nomads). Note that the contract must be structured in a way that qualifies the employee for the beneficial regime.
- Proof of social security registration in Spain
- Modelo (Form) 149: The official request to opt into the Beckham Law tax regime.
- Modelo 030: Tax Residence Declaration
- Modelo 149: Beckham Law Election Form
- Submit the Application
- Applications for the Beckham Law must be submitted to the Spanish Tax Agency (Agencia Tributaria) within six months of registering with Spanish Social Security.
- In most cases, this must be handled in Spain, but some applications may be completed remotely through a legal representative.
- Wait for Approval
- Processing times vary, but applications are typically reviewed within a few months.
- If approved, you will be granted non-resident tax status and taxed under the Beckham Law tax rate from the year of approval.
- File Taxes Under the Beckham Law
- Once enrolled, you must file taxes under the Beckham Law framework each year, ensuring compliance with Spanish tax authorities.
- US taxpayers must also ensure compliance and optimization of their US tax filing with the IRS, often requiring close collaboration with a seasoned cross-border tax professional.
Critical Filing Deadlines
As noted previously, applications for the Beckham Law must be submitted to the Spanish Tax Agency (Agencia Tributaria) within six months of registering with Spanish Social Security.
Annual compliance considerations once accepted
- Form 714 (Foreign Asset Declaration)
- U.S.-Spain Totalization Agreement documentation
What Happens If Your Application Is Denied?
If your Beckham Law application is denied, you still have options. The rejection may be due to incomplete documentation, eligibility issues, or missed deadlines. Here’s what to do next:
- Review the Reason for Rejection
- The Spanish Tax Agency (Agencia Tributaria) will provide a reason for denial.
- If the issue is documentation-related, you may be able to correct and resubmit your application.
- File an Appeal
- If you believe the decision was incorrect, you can submit an appeal within one month of receiving the rejection notice.
- Appeals must be filed with the Spanish Administrative Economic Court (TEAC) or through legal representation.
- Consider Alternative Tax Strategies
- If you cannot qualify for the Beckham Law, explore other tax-efficient structures, such as becoming a full tax resident in Spain and leveraging the Foreign Tax Credit (FTC) in the U.S. to reduce double taxation.
The appeal process can be complex. Working with a Spanish tax lawyer can improve your chances of securing approval or finding alternative solutions.
Beckham Law: Tax Benefits and Limitations
The Beckham Law tax rate offers significant advantages for eligible expats, but it also comes with limitations.
Key Tax Advantages
For those who qualify, the Beckham law tax rate is highly advantageous. Instead of paying Spain’s progressive tax rates (which can exceed 45%), Beckham Law beneficiaries enjoy a flat 24% tax rate on Spanish-sourced income up to €600,000.
Income above the €600,000 threshold is subject to Spain’s highest tax bracket at 47%.
Beckham Law Spain: Foreign Income Tax Advantage
One of the biggest benefits of the Beckham Law is that Spain does not tax foreign income. This makes it an attractive option for high-net-worth individuals with investments, rental properties, or business income abroad.
What Taxes Still Apply?
While the Beckham Law offers a favorable 24% flat tax rate on Spanish employment income, it does not exempt all types of income from taxation. Expats benefiting from this regime must still comply with certain tax obligations, particularly when it comes to capital gains and social security contributions.
Capital Gains Tax Under the Beckham Law
The Beckham Law capital gains rules mean that while employment income is taxed at 24%, investment income, dividends, and real estate gains are subject to Spain’s standard tax rates:
| Income Type | Tax |
| Capital Gains Tax | Profits from selling stocks, real estate, or other investments are taxed at 19% to 28%, depending on the amount. |
| Dividends and Interest Income | Any dividends from Spanish companies or bank interest earned in Spain are taxed at the same progressive rates |
| Rental Income | If you rent out a property in Spain, rental income is taxed at non-resident tax rates (24%), without deductions available to tax residents. |
Although the Beckham Law exempts foreign income, Spanish-sourced capital gains and investment income remain taxable.
Social Security Contributions Under the Beckham Law
The Beckham Law social security rules require that beneficiaries still pay into Spain’s social security system, which impacts both employees and business owners:
- Employees: If you work for a Spanish company, social security contributions will be deducted from your salary, typically 6-7% for employees and 30-35% for employers.
- Freelancers and Digital Nomads: If you qualify for the Beckham Law under a Digital Nomad Visa or work as an autónomo (self-employed), you must register and pay self-employed social security contributions. These contributions start at 80 euros per month for the first year and increase in the second year before increasing again to 230 euros per month and up in the 3rd year, depending on your income.
- U.S. Social Security and Totalization Agreements: The U.S.-Spain Totalization Agreement may allow certain expats to avoid double social security taxation by continuing to contribute to U.S. Social Security instead of Spain’s system. (2)
Bottom Line: What Taxes Still Apply?
The Beckham Law offers a flat 24% tax rate on salary income and exemptions on foreign income. Taxes on capital gains, dividends, and rental income fall outside the purview of the Beckham Law and are subject to different taxation. Additionally, social security contributions are still required.
Proper tax planning is essential to maximize savings and ensure compliance with both Spanish and U.S. tax laws.
Is the Beckham Law Worth It? Who Should Apply?
The Beckham Law provides significant tax advantages, but it is not the right fit for everyone. While it can greatly reduce Spanish tax liability for high earners, it also comes with limitations that may make it less beneficial for certain expats.
Who Benefits the Most?
The Beckham Law is particularly advantageous for:
- High-Earning Expats in Spain: Professionals working for multinational companies can benefit from the fixed 24% tax rate, avoiding Spain’s progressive tax brackets, which reach up to 47% for higher incomes.
- Business Owners with Strategic Income Structuring: U.S. expats who own less than 25% of a company and receive a salary may qualify for non-resident tax status, helping them lower their Spanish tax burden.
- U.S. Freelancers and Digital Nomads (if Eligible): Under recent changes, digital nomads on Spain’s Digital Nomad Visa may now apply for the Beckham Law, making it a tax-efficient option for remote workers who primarily earn from foreign companies.
When It May Not Be Ideal
While the Beckham Law offers a clear tax advantage for certain expats, it may not be the best choice for:
- Long-Term Residents: The Beckham Law applies for a maximum of six tax years, after which beneficiaries must transition to Spain’s standard tax regime, which taxes worldwide income at progressive rates. Those planning to stay indefinitely may find other tax planning strategies more beneficial.
- Expats with Low Spanish-Sourced Income but High Foreign Income: Since the Beckham Law only applies to Spanish-earned income, individuals who derive most of their earnings from foreign investments, real estate, or overseas business activities may not see substantial benefits.
Final Thoughts – Should You Apply for the Beckham Law?
If you meet the narrow but valuable requirements of the Beckham Law, you should absolutely take advantage of it — it’s one of the most effective ways for high earners, business owners, and digital nomads to reduce their tax burden in Spain. But even if you don’t qualify, don’t lose hope: with the right structuring, we can still help reduce your overall Spanish tax liability.
Contact us today to explore your best cross-border tax strategies.
Bonus: If the wheels for your move to Spain are in motion, we offer joint, paid consultations with our Spanish tax and immigration partner, Mar Pomerol i Miralles, to address all of your cross-border tax and Spanish immigration questions. Please let us know on our contact page if you are interested in this option.
References
- David Beckham at Real Madrid: The story of how Goldenballs became a Galactico | FourFourTwo
- Totalization Agreement with Spain | International Programs | SSA
- Research Gate, May of the Autonomous Regions in Spain
