Beckham Law Explained: How to Pay Just 24% Tax as a Newcomer to Spain
Learn how Spain's special tax regime lets qualifying newcomers pay a flat 24% tax rate instead of progressive rates up to 47%. Eligibility, application process, and common mistakes.
What is the Beckham Law?
The Beckham Law (officially Régimen Especial de Impatriados or Ley Beckham) is a special tax regime in Spain that allows qualifying newcomers to pay a flat 24% income tax rate instead of the progressive Spanish tax rates that can reach up to 47%.
The nickname comes from footballer David Beckham, who famously benefited from this regime when he joined Real Madrid in 2003. While the law has evolved since then, it remains one of Europe's most attractive tax incentives for skilled professionals and entrepreneurs relocating to Spain.
Who Qualifies: The 5-Year Non-Residency Rule
To be eligible for the Beckham Law, you must meet these criteria:
- Non-resident for 5+ years: You must NOT have been a Spanish tax resident for the 5 tax years preceding your move
- New employment or business activity: Your move must be due to a work contract, corporate director position, or qualifying entrepreneurial activity
- Spanish-sourced income: Your main income must come from work performed in Spain
- Application deadline: You must apply within 6 months of starting work in Spain
Eligible Visa Types
- Digital Nomad Visa: Eligible (remote work for foreign employers qualifies)
- Startup Visa: Eligible (entrepreneurial activity qualifies)
- Highly Qualified Professional Visa: Eligible
- Intra-company Transfer: Eligible
- Non-Lucrative Visa: NOT eligible (no work activity)
The 24% Flat Rate vs Progressive Spanish Tax
Here's where the Beckham Law really shines. Compare the tax you'd pay:
Tax Rate Comparison
Beckham Law Rate:
- 24% on income up to €600,000/year
- 47% on income above €600,000/year
Regular Spanish Tax Rates (2026):
- 19% on €0 - €12,450
- 24% on €12,451 - €20,200
- 30% on €20,201 - €35,200
- 37% on €35,201 - €60,000
- 45% on €60,001 - €300,000
- 47% on €300,000+
Example: On €100,000 annual income:
- Beckham Law: €24,000 tax
- Regular rates: ~€32,000 tax
- Savings: €8,000/year
Which Income Types Are Covered?
Understanding what's covered is crucial for tax planning:
Income Taxed at 24%
- Employment income from Spanish sources
- Self-employment income from activities in Spain
- Director fees from Spanish companies
- Remote work income if you're physically in Spain
Foreign Income (Exempt from Spanish Tax)
- Dividends from foreign companies
- Interest from foreign bank accounts
- Rental income from foreign properties
- Capital gains from foreign assets
Important: Under Beckham Law, you're treated as a non-resident for foreign income, meaning Spain doesn't tax it at all. This is a major advantage over regular tax residency.
How to Apply: Form 149 and Deadlines
The application process requires attention to detail and timing:
Step-by-Step Process
- Obtain NIE and register with Social Security — You need these before applying
- Complete Modelo 149 — Declaration form to opt into the regime
- Submit within 6 months — From the date you start working in Spain
- Receive confirmation — Tax agency processes within 10 business days
- File annual tax returns — Using Modelo 151 instead of the regular form
Required Documents
- Completed Modelo 149 form
- Copy of NIE (foreigner identification number)
- Employment contract or business registration
- Proof of Social Security registration
- Certificate of non-residency for prior 5 years (recommended)
Duration: 6 Years of Tax Benefits
The Beckham Law benefits last for:
- Year of arrival + 5 following tax years = 6 years total
After 6 years, you automatically transition to regular Spanish tax residency with progressive rates. Plan ahead for this transition, especially if you have significant foreign assets or income.
Common Mistakes to Avoid
Don't let these errors cost you the tax benefits:
- Missing the 6-month deadline — The deadline is strict; late applications are rejected
- Previous Spanish residency — Even 1 day as tax resident in the prior 5 years disqualifies you
- Not understanding covered income — Some income types still face regular taxation
- Forgetting Modelo 720 — You may still need to declare foreign assets over €50,000
- Assuming automatic qualification — You must actively apply; it's not automatic
- Working before visa approval — The 6-month clock starts when you legally begin work
Pro tip: Work with a Spanish tax advisor (asesor fiscal) who has experience with the impatriate regime. The savings from proper planning far exceed the advisory costs.