What is the Beckham Law ?

Article author
Nneka
  • Updated

The Beckham Law or Régimen Especial para Trabajadores Desplazados is a special tax regime, that benefits individuals obtaining Spanish tax residency through employment or contracts within Spanish territory. This article explains how tax is calculated for employees under the Beckham law, requirements and conditions, how to apply and what to expect once the employee is taxed under this regime.

Note: The special tax regime is granted on an individual basis and does not apply to all family members.

Table of contents

How is tax calculated under the Beckham law?

  • Individuals under the Beckham Law are taxed at a flat rate of 24% on their income up to €600,000.
  • For income exceeding €600,000, the tax rate is 45%.

Eligibility and conditions

Employees who establish their tax residence in Spain as a result of their employment in the country must fulfill certain requirements to be taxed under the Beckham regime:

  1. The employee must not have been a resident in Spain during the 5 tax years prior to the one in which they move to Spanish territory.
  2. The reasons for the employee's move to Spanish territory include:
    • Beginning an employment relationship or being sent to work in Spain with a letter confirming the assignment.
    • Becoming a director of an entity in which they hold a stake of no more than 25%.
    • Benefiting from a Nomad VISA.
    • Having a spouse who is under the Beckham law.
  3. The employee cannot earn income in Spain that is considered to have been obtained through a Permanent Establishment located in Spain.
  4. Employees have a 6-month window to apply for the regime after they register for social security and begin working and in Spain.

How can I apply for the Beckham Law regime?

During the onboarding process, employees will be asked to provide the necessary information to Remote to apply for the Beckham Law. Once the employee provides the necessary details, Remote will then gather the required information to determine the employee's eligibility for the Beckham Law. If the employee is eligible, Remote will apply for the Beckham Law on behalf of the employee.

If you have already completed your onboarding and haven't applied for the regime, you can reach out to us so we can guide you through the process. You can contact our team via email at help@remote.com.

Tax liability as a non-tax resident

If an individual is granted the special tax regime, they will pay taxes as a non-tax resident for a period of six years (the year when residence is acquired and the following 5 years), unless they are excluded from or waive the right to be taxed under the special tax regime.

Transition to ordinary resident status

After the six-year period, the individual will be considered an ordinary resident in Spain for tax purposes and will be subject to progressive tax rates on worldwide income.

To learn more about the Beckham law see, Beckham Law in Spain: Who Can Apply, Main Tax Benefits & More.

See also: IRPF guide

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