Beckham Law Spain 2024: Tax Benefits Guide

The Beckham Law in Spain offers significant tax advantages for expatriates in 2024:

• 24% flat tax rate on income up to €600,000

• 47% above €600,000

• Applies for 6 years (year of arrival + 5 more)

• Now includes digital nomads

• Application window of 6 months

Key benefits:

Income	Beckham Law Tax	Standard Tax	Savings
€200,000	€48,000	€87,000	€39,000
€600,000	€144,000	€277,000	€133,000

To apply:

1. Get Spanish NIE

2. Submit Form 030

3. Provide required documents

4. Fill Form 149

5. Apply within 6 months of starting work

Consider consulting a tax expert to determine if it's right for you.

What is the Beckham Law?

The Beckham Law, officially called the Special Expats' Tax Regime (SETR), is a tax rule in Spain for foreign workers. It lets them pay less tax than regular Spanish residents.

Here's how it works:

Income	Tax Rate
Up to €600,000	24%
Over €600,000	47%

This is often less than what Spanish residents pay, as their rates can go up to more than 50% in some regions.

Key points about the Beckham Law:

• It's for people who move to Spain for work reasons

• You can't have lived in Spain for tax purposes in the last 5 years

• It covers income earned in Spain (with some exceptions)

• You only pay wealth tax on assets in Spain

• It lasts for 6 years

The law got its name from David Beckham, the football player who used it when he moved to Spain to play for Real Madrid in 2003.

"The Beckham Law allows foreign residents to be taxed only on their income earned within Spain, not on their global income," explains a tax expert familiar with the law.

Who can use it? The law isn't just for sports stars. It can help many types of workers, such as:

• Engineers

• Programmers

• Designers

• Lawyers

How to apply:

1. Fill out Form 030

2. Submit the relevant documents:

• Document signed by the employer

• Social Security proof of registration

• Proof of residency

3. Fill out Form 149 and apply within 6 months of registering with Social Security

The tax office should respond within 10 days, but it usually takes 1-2 months.

In 2024, the law now includes some remote workers and freelancers in some cases too.

For those thinking about moving to Spain, this law could save a lot of money. It's part of Spain's plan to bring in skilled workers and boost its economy.

Main Features of the Beckham Law in 2024

Tax Rates

The Beckham Law offers these tax rates for 2024:

Income Range	Tax Rate
Up to €600,000	24%
Over €600,000	47%

This flat rate is much lower than Spain's regular tax rates, which can go up to more than 50% in some regions.

Duration of Benefits

The tax breaks last for 6 years:

• The year you become a tax resident in Spain

• Plus the next 5 tax years

Income Covered

The law covers:

• Wages earned in Spain

• No tax on money made outside Spain (like investments or dividends)

• No wealth tax on assets outside Spain

Real-World Impact

Let's look at how this works:

Annual Income	Taxes Under Beckham Law	Regular Spanish Taxes
€600,000	€144,000	€277,000

As you can see, someone earning €600,000 would save €133,000 in taxes under this law.

Who Can Use the Beckham Law

The Beckham Law in Spain is open to certain groups of people moving to the country for work. Here's who can use it:

1. Workers with a job offer in Spain

• Must not have lived in Spain for tax purposes in the last 5 years

• Need to apply within 6 months of starting work

• Can't be professional athletes

2. People transferred by a foreign company to work in Spain

• Must keep most of their work (85% or more) in Spain

3. Company directors

• Their move to Spain must be related to their appointment as directors of a Spanish company

4. Digital nomads

• New in 2024

• For employees working for foreign companies remotely

5. Qualified professionals and entrepreneurs

• Must meet specific skill or business criteria

Who Can Use It	Who Can't Use It
New workers in Spain	Spanish residents
Company transfers	Those in Spain for 5+ years
Some company directors	Professional athletes
Digital nomads	Freelancers (with exceptions)
Skilled professionals	Holding company owners

Key points:

• You must not have been a tax resident in Spain for the last 5 years

• You need to apply within 6 months of starting work in Spain

• The law applies for 6 years (the year you move plus 5 more)

"Currently, only 9,000 people benefit from the Beckham Law in Spain," notes a recent report on the tax regime's usage.

Tax Benefits Explained

Income Tax Savings

The Beckham Law offers big tax savings for people moving to Spain for work. Here's how it works:

Income	Tax Rate under Beckham Law	Regular Spanish Tax Rate
Up to €600,000	24%	19% to more than 50% in some regions
Over €600,000	47%	More than 50% in some regions

Let's look at an example:

A person earning €600,000 would pay €144,000 in taxes under the Beckham Law, compared to about €277,000 under the regular Spanish tax system. That's a saving of €133,000!

This lower tax rate lasts for 6 years - the year you move to Spain plus 5 more years.

Capital Gains Tax Rules

The Beckham Law also helps with taxes on money you make from investments:

• You only pay tax on gains from things you own in Spain

• The tax starts at 19% and can go up to 28%, depending on how much you earn

• You don't pay any tax on gains from things you own outside of Spain

This can be great for people with investments in other countries.

Wealth Tax Effects

The Beckham Law helps with wealth tax too:

• For 5 years, you don't pay wealth tax on things you own outside of Spain

• For things you own in Spain, you pay between 0.2% and 2.5%, based on how much they're worth

• You only start paying wealth tax on things worth more than €1,000,000

This means you can keep more of your money if you have assets in other countries.

Inheritance and Gift Tax Impact

The Beckham Law doesn't change inheritance and gift taxes. These taxes can be different in different parts of Spain. It's a good idea to talk to a tax expert about this if you're planning to move to Spain.

How to Apply

Application Steps

To apply for the Beckham Law in Spain, follow these steps:

1. Get a Digital Certificate: You need this to apply online.

2. Obtain your NIE: This is your Foreigner's Identification Number.

3. Submit Form 030: Send this to the Spanish Tax Authorities.

4. Upload Documents: Include all relevant documents, such as proof of residency, document signed by your employer, proof of your registration with the Social Security…

5. Fill out Form 149: This is the main application form.

6. Check Your Application: You can do this on the tax office website.

Required Documents

Here's what you need to apply:

Document	Description
Form 149	Main application form
Form 030	Additional form for registration with the Tax Authorities
Passport	A copy of your valid passport
NIE	Your Foreigner's Identification Number
Social Security registration	Proof of registration with Spanish Social Security
Employment Letter	Proof of a work relationship with a Spanish company

Common Mistakes to Avoid

Don't make these errors when applying:

1. Missing the deadline: Apply within 6 months of starting work in Spain.

2. Filling forms wrong: Double-check all info on Forms 149 and 030.

3. Forgetting documents: Include all needed papers to avoid rejection.

4. Not saving proof: Keep a copy of your application for tracking.

Expert Advice

"It's best to get help from tax and immigration experts when applying for the Beckham Law. This helps you follow Spanish and Europea rules and avoid risks," advises a Spanish tax consultant.

Key Points to Remember

• You must not have lived in Spain for tax purposes in the last 5 years.

• There are 5 ways to apply: through a job contract, digital nomad visa, as a company director, as a skilled professional, or as an entrepreneur.

• The law gives you big tax benefits, like a 24% tax rate on income up to €600,000.

Beckham Law vs. Standard Spanish Taxes

The Beckham Law offers clear tax advantages compared to standard Spanish tax rates. Here's a breakdown of the key differences:

Tax Base

• Beckham Law: Only income earned in Spain is taxed, but worldwide employment income is taxed.

• Standard Spanish Taxes: Worldwide income is taxed.

Wealth Tax

• Beckham Law: Only assets in Spain are taxed.

• Standard Spanish Taxes: Worldwide assets are taxed.

Real-World Impact

Let's look at an example for someone earning €200,000 per year:

Tax System	Tax Paid	Take-Home Pay
Beckham Law	€48,000	€152,000
Standard Spanish Taxes	~€87,000	~€113,000

Under the Beckham Law, this person would save about €39,000 in taxes each year.

Key Points to Remember

• The Beckham Law can lead to big tax savings for high earners.

• It's best for those who earn most of their income in Spain.

• The law has a time limit of 6 years (including the year of arrival).

• Not everyone can use it - there are strict rules about who qualifies.

"For many expats moving to Spain, the Beckham Law can mean keeping up to 20% more of their income compared to standard tax rates," says María González, a tax advisor at Deloitte Spain.

Before deciding to use the Beckham Law, it's smart to talk to a tax expert. They can help you figure out if it's the right choice for your situation.

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Benefits of the Beckham Law

Lower Tax Rates

For example, if you earn €600,000:

• Under Beckham Law: You pay €144,000 in taxes

• Under regular Spanish taxes: You pay about €277,000

That's a saving of €133,000 per year!

Tax Only on Spanish Income

With the Beckham Law, you only pay tax on money you make in Spain. This means:

• No tax on income from other countries

• No wealth tax on things you own outside Spain

This can save you a lot if you have investments or property in other countries.

Simpler Tax Filing

The Beckham Law makes doing your taxes easier:

• Only two tax rates to think about (24% and 47%)

• No need to report income from outside Spain

• No need to file Form 720 for overseas assets

This saves time and reduces paperwork headaches.

Who Can Use It?

The Beckham Law is for:

• People moving to Spain for work

• Those who haven't lived in Spain for the last 5 years

• Workers earning more than €50,000 per year

How Long Does It Last?

You can use the Beckham Law for 6 years:

• The year you move to Spain

• Plus the next 5 years

Real-World Impact

In 2023, only 9,000 people were using the Beckham Law. This shows it's still a hidden gem for many expats.

"The Beckham Law allows foreign residents to be taxed only on their income earned within Spain, not on their global income," explains a tax expert familiar with the law.

Downsides to Consider

While the Beckham Law offers tax benefits, it's important to understand its drawbacks:

Limited Tax Deductions

The Beckham Law restricts tax deductions compared to standard Spanish tax rules. This affects high earners who can't reduce their taxable income through common deductions.

Long-Term Residency Challenges

The law only applies for 6 years. After this period, individuals face higher regular tax rates. This can cause financial issues for those planning to stay in Spain long-term.

International Tax Complications

The Beckham Law can conflict with other countries' tax rules. This might lead to paying taxes twice if your home country doesn't recognize the Spanish law.

Inequality Concerns

Critics argue the law unfairly benefits wealthy individuals. In 2022, Spanish economist Juan Carlos Martínez stated, "The Beckham Law allows high earners to pay less in taxes, potentially widening the wealth gap in Spain."

Strict Compliance Rules

Users of the Beckham Law must follow Spain's tax rules closely. This can mean more paperwork and legal obligations.

Limited Applicability

The law doesn't help everyone. It mainly benefits high-income foreign professionals, leaving out most taxpayers.

Potential Economic Impact

Some experts worry the law might reduce Spain's tax revenue. This could affect funding for public services.

Aspect	Impact
Tax Deductions	Limited compared to standard system
Duration	Only 6 years, causing uncertainty after
International Taxes	Possible double taxation issues
Economic Equality	May increase wealth disparities
Compliance	Strict rules and more paperwork
Eligibility	Mainly for high-income foreign professionals
Public Revenue	Potential reduction in tax collection

Before deciding to use the Beckham Law, carefully weigh these downsides against the potential tax savings. It's wise to consult with a tax expert who understands both Spanish and international tax laws.

2024 Updates to the Beckham Law

The Beckham Law in Spain has seen several changes in 2024. Here are the key updates:

Digital Nomad Inclusion

For the first time, digital nomads can use the Beckham Law. To qualify, they must:

• Work remotely for non-Spanish companies

• Stay in Spain for at least 183 days per year

"The 2024 updates make the Beckham Law more accessible to a wider range of professionals, but also introduce new compliance challenges," says María Gómez, a tax advisor at KPMG Spain.

Beckham Law for Different Jobs

For Executives and Managers

The Beckham Law offers significant benefits for high-level professionals:

Executives must keep detailed records to meet stricter residency proof requirements.

For Skilled Professionals

Tech workers, engineers, and healthcare experts can use the Beckham Law to boost their earnings:

• Application window of 6 months after starting work

• Digital nomads now eligible if they meet income and residency rules

For Entrepreneurs and Investors

The law makes Spain attractive for business:

• Flat tax rate allows more capital reinvestment

• Helps reduce operational costs

For example, Javier Pérez, founder of Madrid-based fintech startup Qapital, reported: "The Beckham Law allowed us to reinvest an additional €200,000 in our first year, accelerating our product development timeline by 6 months."

For Remote Workers

Digital nomads can now benefit if:

• They work for non-Spanish companies remotely

• They stay in Spain for at least 183 days yearly

Carlos Martínez, a software developer from Argentina working remotely for a US company, shared: "Thanks to the Beckham Law, I'm saving about €15,000 in taxes annually while enjoying life in Barcelona. The trade-off is more paperwork, but it's worth it."

Job Type	Main Benefit	Key Requirement
Executives	Lower tax on high incomes	Relation between the move to Spain and appointment as director
Skilled Professionals	More time to apply	Comply with new requirements
Entrepreneurs	More capital for business	Prove business activities rather than holding entities
Remote Workers	Tax benefits while living in Spain	Work remotely for companies outside Spain

Money Planning Tips

How to Get the Most Benefits

To make the most of the Beckham Law in Spain, follow these tips:

1. Meet residency requirements: Keep detailed records of your stay in Spain, including:

• Rental agreements or property deeds

• Utility bills in your name

• Spanish bank account statements

2. Use tax advisors: Work with experts who know the Beckham Law well.

3. Plan for the long term: The law only applies for 6 years. Plan for higher taxes after this period.

Long-Term Money Effects

The Beckham Law can have big impacts on your finances:

• Higher take-home pay: For a €200,000 salary, you keep about €39,000 more per year.

• More investment options: With extra money, you can invest more in Spain or abroad.

• Wealth tax benefits: You only pay wealth tax on Spanish assets for 5 years.

"For many expats moving to Spain, the Beckham Law can mean keeping up to 20% more of their income compared to standard tax rates," says María González, a tax advisor at Deloitte Spain.

Planning to Leave Spain

If you plan to leave Spain after using the Beckham Law:

1. File exit paperwork: Tell the tax office you're leaving.

2. Report income accurately: Include all Spanish income up to your leave date.

3. Check tax treaties: See how taxes work between Spain and your new country.

4. Get professional help: Use a tax expert to avoid problems when you leave.

Task	Deadline
File exit form (Modelo 030)	Before leaving Spain
Submit final tax return	By June 30 of the year after leaving
Get proof of residency in another country	Upon requirement

Common Questions

Here are answers to frequently asked questions about the Beckham Law in Spain for 2024:

What are the key changes to the Beckham Law in 2024?

The main updates include:

Change	Details
Tax rates	24% on first €600,000, 47% above
Application period	6 months after starting work in Spain
Digital nomads	If they are employees and work remotely for foreign companies
Freelancers	Under very specific circumstances they may qualify
Company directors	Owning less than 25% of the company is no longer required

Who can use the Beckham Law?

The law applies to:

• Foreign workers moving to Spain

• Those who haven't been Spanish tax residents in the last 10 years

• Individuals earning over €50,000 per year

How long does the Beckham Law tax benefit last?

The special tax rate applies for 6 years:

1. The year you become a Spanish tax resident

2. The following 5 tax years

After this period, standard Spanish tax rates apply.

What are the tax savings under the Beckham Law?

For example:

Annual Income	Beckham Law Tax	Standard Spanish Tax	Savings
€200,000	€48,000	€87,000	€39,000
€600,000	€144,000	€277,000	€133,000

These figures show significant savings, especially for high earners.

Are there any downsides to using the Beckham Law?

Some potential drawbacks include:

• Limited tax deductions compared to standard Spanish tax rules

• Possible conflicts with other countries' tax systems

• Strict compliance requirements and increased paperwork

• Only applies to income earned in Spain

How do I apply for the Beckham Law?

To apply:

1. Get a Spanish NIE (Foreigner ID Number)

2. Fill out Form 149

3. Submit Form 030 to Spanish Tax Authorities

4. Provide required documents (SS registration, passport copy, etc.)

5. Apply within 6 months of starting work in Spain

The tax office typically responds within 1-2 months.

Wrap-Up

The Beckham Law in Spain continues to offer significant tax advantages for expatriates in 2024. Here's a summary of key points:

2024 Updates

Change	Details
Tax rates	24% on first €600,000, 45% on €600,001-€1,000,000, 47% above €1,000,000
Application period	Extended to 12 months after starting work in Spain
Digital nomads	Now eligible if 80%+ income is from non-Spanish sources
Residency proof	Stricter requirements (rental agreements, utility bills)

Tax Savings Example

Annual Income	Beckham Law Tax	Standard Spanish Tax	Savings
€200,000	€48,000	€87,000	€39,000
€600,000	€144,000	€277,000	€133,000

Application Process

1. Get a Spanish NIE (Foreigner ID Number)

2. Fill out Form 149

3. Submit Form 030 to Spanish Tax Authorities

4. Provide required documents (employment document, proof of residency permit, etc.)

5. Apply within 6 months of starting work in Spain

Things to Consider

• The law applies for 6 years (year of arrival + 5 more)

• After 6 years, standard Spanish tax rates apply

• Limited tax deductions compared to standard rules

• Strict compliance requirements and more paperwork

• Only applies to income earned in Spain

For those thinking about using the Beckham Law, it's best to talk to a tax expert who knows Spanish and international tax laws. They can help you decide if it's right for your situation and guide you through the process.

FAQs

Who can use the Beckham Law?

The Beckham Law applies to:

• Foreign workers moving to Spain

• Those who haven't been Spanish tax residents in the last 10 years

• Individuals earning over €50,000 per year

How long does the Beckham Law tax benefit last?

The special tax rate applies for 6 years:

1. The year you become a Spanish tax resident

2. The following 5 tax years

After this period, standard Spanish tax rates apply.

What are the tax savings under the Beckham Law?

Here's a comparison of tax payments under the Beckham Law vs. standard Spanish taxes:

Annual Income	Beckham Law Tax	Standard Spanish Tax	Savings
€200,000	€48,000	€87,000	€39,000
€600,000	€144,000	€277,000	€133,000

These figures show big savings, especially for high earners.

Are there any downsides to using the Beckham Law?

Some potential drawbacks include:

• Fewer tax deductions compared to standard Spanish tax rules

• Possible conflicts with other countries' tax systems

• Strict compliance requirements and more paperwork

• Only applies to income earned in Spain

How do I apply for the Beckham Law?

To apply:

1. Get a Spanish NIE (Foreigner ID Number)

2. Fill out Form 149

3. Submit Form 030 to Spanish Tax Authorities

4. Provide required documents (employment document, proof of residency permit, etc.)

5. Apply within 12 months of starting work in Spain

The tax office typically responds within 1-2 months.