When should you apply for the Beckham Law?

Now that you’re familiar with the Beckham Law and have decided it’s the right choice for you, you might be wondering when the best time to apply is.

Don’t worry, this is a common question, and we’ll answer it in this article.

But first, if you’re still unsure whether the Beckham Law is the right fit for you, we recommend checking out this previous article from our blog: Should You Apply for the Beckham Law?

Now, back to the main question this article addresses: When should you apply for the Beckham Law?

The sooner, the better

It may not come as a surprise, but when it comes to the Beckham Law our recommendation is simple: apply as early as you can.

There are several reasons behind this recommendation, but two stand out.

The first is that you have a 6-month window to submit your Beckham Law application. This period begins from either:

1. The date you register with the Spanish Social Security system, or
2. The start date of your activity in Spain if you have a Coverage Certificate

This cannot be stressed enough. The Spanish tax authorities have set a strict deadline for applications, and missing it could mean losing out on substantial tax savings.

It's crucial to mark this date on your calendar and set reminders.

Procrastination could cost you dearly, as applications submitted after this 6-month period are likely to be rejected without much consideration.

The second reason is that due to the popularity of the Beckham Law, many tax offices in Spain are experiencing a high volume of applications. This has led to significant processing times, with some offices reporting waits of over two months.

By submitting your application early, you're giving yourself a buffer against these potential delays.

Discover if you qualify for the Beckham Law

Understanding tax residency and its impact

A key factor in determining when the Beckham Law regime begins to apply is your date of entry into Spain.

This date plays a key role in establishing your tax residency status, which in turn affects the timing of your tax benefits.

Let's consider two different scenarios:

• Scenario 1 - Arriving before July 1st: If you arrive in Spain before July 1st, you're likely to spend more than 183 days in the country during that calendar year. This would classify you as a tax resident for that year. In this scenario, if your Beckham Law application is approved, you'll be able to enjoy the tax benefits from that same year.

• Scenario 2 - Arriving after July 1st: If your arrival date is after July 1st, you'll spend less than 184 days in Spain that year. Consequently, you won't be considered a tax resident for that particular year. In this case, the Beckham Law benefits would take effect from the following year.

A common misconception

A frequent question we receive is whether it's advantageous to delay submitting the application, especially for those arriving in the latter half of the year.

Our answer is unequivocal: do not wait to submit your application, regardless of your arrival date.

Here's why:

1. The entry date into Spain, not the application date, determines when you can start benefiting from the regime.
2. Delaying your application only increases the risk of missing the 6-month deadline.
3. Processing times can be lengthy, so earlier applications give you more peace of mind.

Common pitfalls to avoid

1. Assuming the application process is simple and can be done last-minute
2. Neglecting to properly document your entry date into Spain
3. Failing to understand the tax residency rules and their impact on your application
4. Underestimating the time required for gathering necessary documentation
5. Not seeking professional advice, especially if your situation is complex

The benefits of an early application

1. Peace of mind knowing you've met the deadline
2. Potentially faster access to the tax benefits once approved
3. Avoiding the stress of last-minute rushes and potential mistakes

Conclusion

The Beckham Law offers a fantastic opportunity for expatriates to benefit from a favorable tax regime in Spain.

However, timing is crucial when it comes to the Beckham Law application.

By understanding the importance of early application and the factors that influence when the regime takes effect, you can ensure you maximize your benefits under this law.

Remember, whether you arrive in January or December, the best time to apply for the Beckham Law is always as soon as possible.

Don't let procrastination or misunderstandings about timing cost you this valuable opportunity.

Get started with your Beckham Law application today