What is the Beckham Law?

The Beckham Law (officially the Régimen Especial para Trabajadores Desplazados a Territorio Español, Article 93 LIRPF) is a Spanish tax regime that allows qualifying expatriates to be taxed as non-residents on most of their income, even while living in Spain. Approved in 2004 and named after footballer David Beckham (one of the first high-profile applicants when he joined Real Madrid), the regime offers a flat 24% tax rate on Spanish-source employment income up to €600,000 per year — well below the standard progressive IRPF rates that climb to 47%. This guide explains how it works in 2026–2027, who qualifies, what changed under the 2023 Startup Law, and how to apply.

---

How the Beckham Law Works

Under standard Spanish tax law, anyone who spends more than 183 days per year in Spain is a tax resident. Tax residents pay IRPF (Impuesto sobre la Renta de las Personas Físicas) at progressive rates ranging from 19% to 47%, and they pay on their worldwide income — salary, foreign dividends, foreign rental, foreign pensions, everything.

The Beckham Law breaks that rule. If you qualify, you become a Spanish tax resident (you live here) but you are taxed as if you were a non-resident. That means:

• Spanish employment income is taxed at a flat 24% up to €600,000 per year (47% above that threshold).
• Foreign income — dividends, interest, capital gains, rental income, pensions sourced outside Spain — is not taxed in Spain at all.
• Wealth Tax (Modelo 714) only applies to assets located in Spain, not your worldwide net worth.
• You do not have to file Modelo 720 (the annual declaration of foreign assets) — a major compliance burden saved.
• The regime runs for the tax year of arrival plus the following five years — up to 6 fiscal years of preferential taxation.

You file your annual return using Modelo 151 (the Beckham Law annual return) instead of the standard Modelo 100. The original application is made via Modelo 149, which must be filed within 6 months of registering with Spanish Social Security.

---

Key Benefits of the Beckham Law

The headline benefit is the tax rate, but the real value comes from the combination of rules:

• Flat 24% rate on Spanish salary up to €600,000. Compare with standard IRPF where, on a €200,000 salary in Catalonia, the marginal rate exceeds 45% — Beckham Law typically saves €40,000–€55,000 per year at that level.
• Zero Spanish tax on foreign passive income. Your UK stock portfolio dividends, US 401(k) withdrawals, German rental income, or Irish dividends are entirely outside Spanish tax during the regime.
• No Modelo 720 (foreign asset declaration). Standard residents must declare every foreign account, security, and property worth over €50,000 — with fines up to 150% of unreported value for omissions. Beckham Law taxpayers are exempt.
• Wealth Tax limited to Spanish assets. Standard residents pay Wealth Tax on global net worth above the regional threshold. Beckham Law residents pay only on their Spanish-held assets.
• Stable for 6 years. Once approved, the rate and rules are locked in for the regime period, regardless of future Spanish tax reforms (subject to specific transitional provisions).
• Family inclusion since 2023. Spouse and children under 25 can also apply, with their own preferential regime under specific income conditions.
• Compatible with most visa types. Works with EU Blue Card, Digital Nomad Visa, work permits, and intra-company transfers.

Note on Wealth Tax: as of the 2023 reform, shares in non-resident entities whose assets consist (directly or indirectly) of at least 50% Spanish real estate are now considered Spanish-located for Wealth Tax purposes. If your structure involves foreign holding companies owning Spanish property, specialist review is essential.

---

Who Qualifies for the Beckham Law in 2026–2027

To apply, you must meet all of the following conditions:

1. Not have been a Spanish tax resident in any of the 5 fiscal years immediately before the year of relocation.
2. Move to Spain as a result of one of the qualifying triggers (see below).
3. Become a Spanish tax resident in the year of arrival (i.e., spend more than 183 days in Spain that year or have your centre of economic interests in Spain).
4. Not earn income through a Permanent Establishment in Spain that would disqualify the regime (with limited exceptions for entrepreneurs and freelancers post-2023).
5. File Modelo 149 within 6 months of your first Spanish Social Security registration.

Qualifying Triggers (Why You Are Moving)

• Employment contract with a Spanish company (the original use case).
• Posting to Spain by a foreign employer — intra-company transfers, international assignments.
• Remote work for a foreign company (Digital Nomad Visa, post-2023 Startup Law).
• Appointment as a director of a Spanish entity, provided you do not hold a controlling interest (generally less than 25% direct or indirect shareholding).
• Entrepreneurial activity in Spain — requires a certificate from ENISA confirming the activity qualifies as innovative/entrepreneurial.
• Highly qualified professionals providing services to Spanish startups or scale-ups.

Detailed eligibility for each profile is covered in the complete requirements guide. For a quick eligibility check tailored to your situation, use our free 2-minute eligibility tool.

---

2023 Startup Law: Major Expansion of the Regime

Spain's Startup Law (Ley de Startups) approved in December 2022 and effective January 2023 was the most significant expansion of the Beckham Law since its creation. It opened the regime to four new categories of professionals:

• Freelancers (autónomos) relocating to Spain who provide services primarily to foreign clients or companies, and whose activity does not generate a Spanish Permanent Establishment.
• Remote workers and digital nomads employed by non-Spanish companies, working remotely from Spain. Typically combined with the Spanish Digital Nomad Visa, which requires at least 80% of income from foreign clients.
• Highly qualified professionals providing services to Spanish startups or innovative scale-ups (specific qualification criteria apply).
• Entrepreneurs launching certified innovative business activities (ENISA certification required).

The 2023 reform also extended family inclusion: the spouse/partner and children under 25 (or with disabilities, regardless of age) can now apply alongside the primary taxpayer, subject to specific income and residence requirements. Even partners with zero Spanish income must still file an annual tax return — a frequent oversight.

---

How Much Can You Save? Three Real Examples

Example 1: Tech executive in Madrid — €180,000 salary

• Standard IRPF (Madrid): approx. €73,500 income tax (effective rate 40.8%)
• Beckham Law: €180,000 × 24% = €43,200
• Annual saving: €30,300 · Over 6 years: €181,800

Example 2: Senior consultant in Barcelona — €120,000 salary + €25,000 foreign dividends

• Standard IRPF (Catalonia): approx. €46,800 on salary + €5,500 on dividends = €52,300
• Beckham Law: €120,000 × 24% = €28,800 on salary + €0 on foreign dividends
• Annual saving: €23,500 · Over 6 years: €141,000

Example 3: Director with global portfolio — €250,000 salary + €80,000 foreign capital gains

• Standard IRPF: approx. €107,000 on salary + €19,200 on capital gains = €126,200
• Beckham Law: €250,000 × 24% = €60,000 on salary + €0 on foreign capital gains
• Annual saving: €66,200 · Over 6 years: €397,200

Run your own numbers with the free Beckham Law tax calculator.

---

Beckham Law vs. Other European Expat Tax Regimes

Spain's regime is one of the most competitive in Europe, but not the only option. Quick comparison with the main alternatives:

Country	Regime	Rate	Duration	Foreign Income
Spain	Beckham Law	24% flat (≤€600k)	6 years	0% in Spain
Portugal	NHR 2.0 (IFICI)	20% flat	10 years	Conditional exemption
Italy	Impatriati regime	50% income exemption	5 years (+5)	Worldwide taxed
Netherlands	30% Ruling (now reduced)	30% tax-free allowance (decreasing)	5 years	Box-3 partial exemption
France	Inpatriate regime	30% income exemption	8 years	Limited foreign exemption

For a deeper comparison see Beckham Law vs Portugal NHR 2.0. Spain typically wins for high earners with significant foreign passive income; Portugal can be more attractive for very long stays and specific tech roles.

---

How to Apply: 5 Steps

1. Confirm eligibility — especially the 5-year non-residency rule. Use the free eligibility tool or book a free consultation.
2. Move to Spain and register — obtain your NIE, register at the local town hall (empadronamiento), sign your employment contract, and enrol with Spanish Social Security.
3. File Modelo 149 — the formal application, due within 6 months of your Social Security registration date. See the complete Modelo 149 application guide.
4. Wait for AEAT confirmation — typically 1–3 months. Once approved, your employer applies the 24% withholding.
5. File Modelo 151 annually — between 3 April and 30 June each year for the previous fiscal year. See the Modelo 151 annual return guide.

---

Common Misconceptions About the Beckham Law

"The 24% rate applies to all my income." — No. The 24% applies only to Spanish-source employment income up to €600,000. Above €600,000 the rate is 47%. Spanish dividends, interest, and capital gains follow the standard savings income rates (19–28%).

"If I move to Spain, I automatically benefit." — No. You must actively apply within 6 months of Social Security registration. Missing this deadline forfeits the regime for the entire stay (no retroactive application possible under standard rules).

"Foreign income is completely tax-free." — In Spain, yes. But your country of origin or the source country may still tax that income. Always check the relevant double taxation treaty — sometimes the tax savings are partially offset.

"Once I'm in the regime, I can stay forever." — The regime ends after 6 years. After that, you transition to standard IRPF with worldwide income taxation. Plan your stay (and any major capital events) accordingly.

---

Frequently Asked Questions

Can I switch to the Beckham Law mid-year if I have already filed standard IRPF?

No. The election is made at the start of your tax residency via Modelo 149 within the 6-month window. Once you file a standard IRPF return for the year, the option is generally lost for that year.

Does the regime cover stock options and bonuses paid by my Spanish employer?

Yes, provided they are classified as Spanish employment income. Stock options vested while under the regime are typically taxed at the 24% flat rate at exercise. Complex cases involving multi-jurisdictional vesting periods need specialist review.

What happens to my Spanish-located property during the regime?

Spanish rental income or capital gains on Spanish property are taxed under the rules applicable to non-residents (typically 19% for EU residents, 24% for non-EU). Imputed income on personal-use Spanish property also applies. Foreign-located property remains entirely outside Spanish taxation.

Can I leave Spain temporarily without losing the regime?

You can travel, but you must remain a Spanish tax resident each year (typically >183 days in Spain). Permanent emigration before the 6 years end terminates the regime from the date you cease to be resident.

Do I need a Spanish bank account?

Practically yes — for receiving salary, paying Spanish taxes, and day-to-day life. Not legally required for the regime itself, but expect your employer and AEAT to assume one exists.

What if AEAT rejects my Modelo 149 application?

You can appeal within statutory deadlines. Common rejection grounds are missed deadline, insufficient documentation, or AEAT's view that the move is not for a qualifying reason. Specialist representation greatly increases success on appeal.

---

Get expert advice on the Beckham Law

DPLL Tax & Legal specialises exclusively in the Beckham Law. AEAT Social Collaborator, Barcelona Bar Association (ICAB) registered, English-speaking team. We handle Modelo 149 applications, annual Modelo 151 returns, and full strategic tax planning for cross-border situations.