The Beckham Law in Spain is the popular name for the special tax regime for workers and professionals who move to Spain, regulated in article 93 of the Personal Income Tax Act. It allows eligible individuals who become tax resident in Spain to be taxed, for a limited period, under rules similar to those applied to non-residents. For executives, entrepreneurs and highly qualified professionals relocating to Mallorca, it can make a substantial difference to the tax cost of the move. Raso Investments analyses eligibility, prepares the application within the deadline and advises on the annual obligations and on the interaction with other taxes.
The regime was significantly broadened from 2023, so information written before that date may no longer be accurate. Each case must be reviewed against the requirements in force at the time of the move.
Who qualifies for the Beckham Law in Spain
In general terms, an individual may opt for the regime if the following conditions are met:
- They have not been tax resident in Spain during the five tax years preceding the year in which they move.
- The move is due to one of the qualifying reasons, which include an employment contract with a Spanish or foreign employer (including remote work under the international teleworking rules), appointment as a director of a company subject to certain limits on shareholding, carrying out an entrepreneurial activity classed as innovative, or providing services as a highly qualified professional to start-ups or for research and development activities.
- They do not obtain income that would be considered obtained through a permanent establishment in Spain, except in the specific cases allowed by the rules.
The spouse and children under 25, or children of any age with a disability, may also be able to opt for the regime under certain conditions when they move with the main applicant.
How the regime works
Taxpayers under the regime are tax resident in Spain but are taxed broadly as non-residents. In particular, they are taxed only on income obtained in Spain, with the exception that all their employment income is considered obtained in Spain. Employment income is currently taxed at a flat rate of 24% up to 600,000 euros a year, with a higher rate above that amount. Dividends, interest and capital gains obtained in Spain are taxed under the savings rules. Income from foreign sources other than employment income generally remains outside the Spanish tax net during the regime.
The regime applies to the tax year in which the individual becomes tax resident in Spain and the following five years. For wealth tax purposes, beneficiaries are generally taxed only on assets located in Spain. Our page on wealth tax in the Balearic Islands explains that tax.
How and when to apply
The option must be exercised within six months of the start of the activity in Spain, as shown in the registration with the Spanish Social Security or, where applicable, with the equivalent documentation. The application is made to the Tax Agency using a specific form, and after approval the taxpayer files a specific annual return instead of the ordinary income tax return. Missing the six-month deadline generally means losing the right to the regime, so planning should begin before the move.
What we review
- Your residence history during the previous five years.
- The reason for the move and the documentation supporting it.
- Your shareholding in any company of which you will be a director.
- Your expected income and assets, both in Spain and abroad, to confirm that the regime is beneficial in your case.
- The position of your spouse and children.
- Your residence status, explained on our page on Spanish residency after the golden visa.
Common mistakes
- Applying after the six-month period has expired.
- Assuming that the regime is always better. Taxpayers with low salaries or significant deductible expenses may pay less under the ordinary rules.
- Overlooking that foreign income may still have to be reported in some cases, or that obligations to report foreign assets may apply.
- Ignoring the tax position in the country being left, including exit taxes or continuing residence there.
- Not documenting correctly the qualifying reason for the move.
Tax aspects to consider together
The Beckham Law is one part of a broader analysis. The date on which you become tax resident, the treatment of assets held abroad, any planned property purchase in Mallorca and future succession should all be considered together. Our page on tax residency and moving to Spain explains the general rules on residence. The rates and conditions described are those currently in force; every case is reviewed individually.
It is also worth reviewing the position of family members and of any company through which the applicant will work. The regime is personal, so each eligible family member must meet the requirements and opt separately. Where the applicant will be a director of a company, the shareholding limits and the type of company must be checked carefully, as they can determine whether the regime is available at all.
Frequently asked questions
Can a remote worker for a foreign company apply?
Since the 2023 reform, remote workers who move to Spain under the international teleworking rules can generally qualify, provided the remaining conditions are met.
Can I apply if I am self-employed?
Self-employment in general does not qualify, but entrepreneurial activities classed as innovative and highly qualified professionals serving start-ups or research and development activities may qualify under specific conditions.
What happens after the regime ends?
From the following year you are taxed under the ordinary rules for residents, including on worldwide income and assets. It is advisable to plan for that transition in advance.
Can I buy a property in Mallorca while under the regime?
Yes. The purchase itself is unaffected, although the structure and financing of the acquisition should be considered together with the regime. See our page on buying property in Mallorca.
Next steps
To assess whether the Beckham Law can apply to you, write to info@raso.law. Describe your move and situation: your nationality, current residence, the reason for moving, the expected start date in Spain, your family members and, if relevant, the property you intend to buy. We will review your case individually and reply in writing. Our tax law page contains further information.