Beckham Law in Spain: A Guide for Expats in Malaga

Relocating to Spain for work, entrepreneurship, or remote employment can have significant tax implications. For many international professionals, the Beckham Law—formally the Special Tax Regime for Displaced Workers—is a key factor in Spain’s appeal as a destination for global talent.

That said, the Beckham Law is not suitable for every profile. Its real impact depends on income level, employment structure, source of earnings, family circumstances, and long-term plans in Spain, and in some cases, it may lead to higher costs or compliance risks.

The sections below explain how the regime operates in practice, who can apply, how different types of income are treated, and which issues should be carefully assessed before opting for the Beckham Law.

What is the Beckham Law in Spain?

The Beckham Law is a special tax system that allows individuals relocating to Spain for work to be taxed as non-residents for income tax purposes, even if they stay in Spain for more than 183 days each year.

Under this regime, instead of being subject to Spain’s progressive personal income tax rates—which can reach up to 47% depending on the autonomous community—eligible taxpayers are taxed at a flat rate of 24% on employment income earned in Spain, up to €600,000 per year. If there’s income that exceeds this threshold, it is subject to a higher tax rate.

The regime can be applied for up to 6 tax years, including the year of arrival in Spain and the 5 subsequent fiscal years.

Legal basis and recent updates

The Beckham Law is regulated under Law 35/2006 (LIRPF). However, it was substantially amended by the Startup Law (Law 28/2022), which came into force in 2023.

These reforms expanded the scope of the regime, making it accessible to a wider range of professionals, including digital nomads, entrepreneurs, and certain company directors, while also relaxing some eligibility restrictions.

What are the requirements to benefit from the Beckham Law?

According to Article 93 of the LIRPF, the main requirements to apply for the Beckham Law are the following:

• No prior tax residency in Spain: As a general rule, the taxpayer must not have been a Spanish tax resident in the five tax years preceding their relocation to Spain.
• Relocation to Spain for professional reasons: The move to Spain must be due to professional activity. This requirement is met when the taxpayer relocates:
  • Under an employment contract
  • As a consequence of their appointment as a director or administrator of a Spanish company.

Special rule for directors and shareholders

A key change introduced by the Startup Law affects company directors. Since 2023, the previous limitation preventing directors with more than 25% shareholding from accessing the regime has been removed. This restriction now applies only to asset-holding or purely patrimonial companies. For operating companies, directors may apply the Beckham Law regardless of their ownership percentage.

Taxation of employment income

Employment income is subject to Spanish taxation under the Beckham Law if the work is effectively performed in Spain. This includes salary income generated both in Spain and abroad. The regime does not exempt employment income from Spanish tax; instead, it applies special non-resident tax rules to that income.

Because income classification and factual circumstances are critical, professional advice is strongly recommended before applying for the regime.

Highly qualified professionals and entrepreneurs

International professionals, whether EU or non-EU citizens, may also qualify for the regime when they are considered highly qualified professionals and:

• Provide services to Spanish-based startups, or
• Carry out an economic activity on a self-employed basis, or
• Develop an activity classified as entrepreneurial, in accordance with current regulations.

How Spanish taxation can be affected by the Beckham Law

Below is an overview of how the Beckham Law impacts the main areas of Spanish taxation for qualifying individuals.

Wealth tax implications y el Impuesto de Solidaridad

Under the Beckham Law, taxpayers are only subject to the Spanish Wealth Tax on assets located in Spain, such as real estate in Marbella or bank accounts held with Spanish financial institutions.

Worldwide assets—including foreign real estate, shares in overseas companies, or international investment funds—are not subject to Spanish Wealth Tax.

The same territorial limitation applies to the Solidarity Tax on Large Fortunes, significantly reducing the tax exposure of high-net-worth individuals who hold most of their assets outside Spain.

Capital gains and savings income

The taxation of dividends, interest, and capital gains follows a specific source-based approach under this regime:

• Foreign-source income: not taxed in Spain.
• Spanish-source income: taxed under the Spanish savings income scale, with rates ranging from 19% to 28%.

This includes, for example, capital gains derived from the sale of Spanish shares or Spanish real estate.

Beckham Law Spain calculator and tax examples

As illustrated below, the Beckham Law becomes increasingly advantageous as income rises, particularly for high earners relocating to Spain. The flat 24% rate on employment income creates a substantial gap compared to the progressive rates under the General Regime.

The comparison is based on net annual salary after expenses and Social Security contributions and highlights how marginal tax pressure increases significantly under standard Spanish taxation.

Key takeaway for expats and high-income professionals

The higher the employment income, the greater the potential tax efficiency under the Beckham Law. However, results vary depending on income structure and personal circumstances.

Beckham Law Spain – Real Case Studies

At Tejada Solicitors, we have successfully managed Beckham Law applications for professionals at the Málaga TechPark (PTA), as well as executives residing in premier areas such as Málaga’s Soho or Marbella.

Termination compensation under the Beckham Law

A frequent planning issue arises when a taxpayer under the Beckham Law receives statutory dismissal compensation.

Real case example based in Málaga 

A senior executive in Malaga is dismissed and is required to pay a mandatory compensation of €180,000.

• Under the General Regime, the compensation is fully exempt, resulting in €0 tax.
• Under the Beckham Law, the full amount is treated as employment income and taxed at 24%, leading to a tax liability of €43,200.

Financial impact

In this scenario, remaining under the Beckham Law results in an additional tax cost of € 43,200 compared to standard taxation.

Strategic planning

When a dismissal occurs, it is essential to assess whether voluntarily opting out of the Beckham Law or triggering exclusion from the regime before the end of the tax year could lead to significant tax savings, provided the legal requirements are met.

The application is submitted using Form 149 (Modelo 149) and must be filed within the first six months from the start of employment or professional activity in Spain. The form requires information about the employer, start date, nature of the activity, and the employment offer or appointment.

After submission, the Spanish Tax Office must issue a resolution confirming the application of the special regime. Although the law provides a 10-day period, in practice the process usually takes between 1 and 2 months.

The issued certificate formally confirms the taxpayer’s status under the Special Regime for Displaced Workers and serves as official proof for future tax filings.

Application deadlines and required documentation (Model 149)

The Beckham Law application process is strictly regulated, and deadlines are non-negotiable.

The “6-Month Deadline” and the Supreme Court Ruling

According to the Spanish Supreme Court’s 18 May 2020 ruling, the six-month deadline to file Form 149 is mandatory and preclusive. Submitting the application even one day late will result in denial of the regime.

Essential Documentation for a Successful Application

To ensure approval by the Spanish Tax Agency, the following documents must be carefully prepared:

• Employment contract or a relocation letter, clearly stating the start date and thereason for relocation.
• Passport and NIE, for the applicant and eligible family members.
• Social Security registration certificate, or proof of coverage from the home country.
• Certificate of prior tax residency, demonstrating compliance with the five-year non-residency rule.
• Company documentation, for directors, confirming whether the company is operational or asset-holding.
• Digital nomad evidence, for DNV holders, proving remote work arrangements and the nature of the foreign employer.

Model 151: Annual tax return under the Beckham Law

Taxpayers applying the Beckham Law must file Model 151, which replaces the standard personal income tax return (Model 100). The filing deadline follows the general Spanish income tax calendar, typically running from April to the end of June each year.

Income exempt from taxation under the Beckham Law

According to binding ruling CV 0589-20, taxpayers under the Beckham Law may benefit from flexible remuneration schemes, including exempt benefits in kind regulated under Articles 42.2 and 42.3 of the IRPF. Qualifying items are not subject to taxation, increasing the employee’s purchasing power.

Exemption for reinvestment in primary residence

Under the Beckham Law, taxpayers cannot apply the reinvestment exemption to capital gains from the sale of their main residence, as they are taxed as non-residents (binding ruling V0384-10). However, once the special regime ends and the taxpayer returns to the general regime, the exemption may apply if all standard legal requirements are met, making post-regime planning essential. (binding ruling V1953-10)

Flexible remuneration and remuneration in kind

Taxpayers under the Beckham Law may benefit from certain in-kind benefits that increase net income without increasing employer costs. Key items include stock options (exempt up to €12,000 per year, or €50,000 for certified startups), private health insurance for the employee and immediate family, childcare and education services, collective transport, professional training, and meal vouchers, all subject to statutory limits and conditions.

Downsides and limitations of the Beckham Law

Despite the attractive 24% flat rate, the Beckham Law is not always the optimal option. Its effectiveness depends on income level, family situation, and overall tax structure.

When the Beckham Law may not be advantageous.

For taxpayers with moderate employment income, significant family deductions, or situations where exemptions under the general IRPF regime are more valuable, standard taxation may result in a lower overall tax burden. A case-by-case analysis is essential before opting into the regime.

Key risks and limitations of the Beckham Law

• Global employment income trap: All worldwide employment income is subject to tax in Spain. If salary is also taxed abroad, relief depends entirely on the applicable Double Tax Treaty, which may result in a higher-than-expected tax burden.
• Lower salaries and family situations: For incomes below roughly €50,000–€60,000, the regime is often inefficient. The 24% flat rate applies from the first euro, and personal and family deductions are not available, unlike under the General Regime.
• Dismissal compensation risk: Severance payments are fully taxable under the Beckham Law, whereas they may be exempt under standard IRPF, making prior planning essential.

Exclusion from the regime

According to binding ruling V2663-19, obtaining income through a permanent establishment in Spain (e.g., starting a self-employed activity after employment ends) results in automatic exclusion from the regime.

Voluntary exit from the Beckham Law

The regime applies for five years unless cancellation is requested. To opt out, the taxpayer must notify the Tax Agency via Form 149 in November–December, with effect from the following year. Failure to do so may trigger penalties