Beckham Tax Law

The Beckham Law: Tax Incentives for Foreign Professionals in Spain

The Beckham Law, formally known as the Tax Regime for Impatriates (or Tax Regime Applicable to Workers Displaced to Spanish Territory), was introduced in 2005 to attract highly skilled foreign professionals—such as athletes, executives, and specialists—by offering a favourable tax regime.

Key Features

Reduced Flat Tax Rate: Eligible individuals pay a flat 24% tax on Spanish income up to €600,000 per year, with income above this taxed at 47%, compared to Spain’s higher progressive rates.

Exemption for Foreign Income: For the first six years, income earned outside Spain is not taxed, making it attractive for global professionals.

No Wealth Tax on Foreign Assets: Assets held abroad are exempt from Spain’s wealth tax.

Family Member Benefits: Dependents may also qualify for certain tax advantages under specific conditions.

Eligibility Criteria

To qualify for the Beckham Law:

You must not have been a Spanish tax resident in the five years prior to moving.

You must move to Spain for work, either with a Spanish employer or an international employer with a presence in Spain.

You must hold high-level or specialized positions.

Purpose of the Beckham Law

Spain introduced this law to:

Attract Top Talent: Draw skilled professionals in sectors such as sports, technology, and finance.

Boost Economic Growth: Encourage innovation and productivity through an influx of foreign expertise.

Enhance Spain’s Global Image: Position Spain as a competitive destination for business and investment.

Support the Sports Industry: Enable international athletes to work in Spain, strengthening the sports sector and media exposure.

Although famously associated with footballer David Beckham, the law has since been used by professionals across various industries. Over time, it has been modified, but it remains a strategic tool for attracting foreign talent and stimulating economic development in Spain.

Note: This summary is informational and does not constitute legal advice. Regulations may change, so consult a legal expert for up-to-date guidance specific to your situation.