Spain's Beckham Law: the pros and cons

What is the Beckham Law?

Royal Decree 687/2005, better known as the "Beckham Law," was introduced in 2005 for foreigners living in Spain. The country designed a special tax regime to attract talented people from around the world. David Beckham was the first to take advantage of the preferential arrangement, which is how the law came to bear his name.

How does the Beckham Law work?

The law allows foreigners to pay the standard tax rate only on income earned in Spain, rather than on their worldwide income. Individuals can benefit from the regime for up to six years from the date they become Spanish tax residents.

Who can use the Beckham Law?

To qualify as a beneficiary of this tax regime, you must meet the following requirements:

• you must not have been a Spanish resident during the five years before relocating to the country;
• you must be present in Spain in one of the following capacities:
  • employees hired by a Spanish company;
  • individuals holding management positions in a Spanish company;
  • entrepreneurs;
  • highly qualified professionals or researchers providing services to innovative companies and startups.

What is the application deadline?

The standard deadline for applying to the regime is six months from the date you obtain Spanish tax residency. For relatives of the main taxpayer, the deadline is six months from their arrival in Spain.

Advantages of the Beckham Law

• Tax is levied only on income earned in Spain. Under the ordinary regime, all worldwide income is taxable.
• The tax rate is 24% on income up to 600,000 euros. Anything above that threshold is taxed at 47%.
• Wealth tax applies only to assets located in Spain.
• There is no obligation to file a tax return declaring foreign assets.
• The applicant's spouse and children can also benefit from the regime.

Drawbacks of the Beckham Law

• Most double taxation treaties do not apply to taxpayers using this regime.
• The applicant cannot claim the tax reliefs available to other taxpayers under the ordinary regime.
• Anyone who opts for this regime forgoes the exemption on severance pay and the minimum family allowance deduction.

Applying the special tax regime for foreigners under the Beckham Law always depends on the applicant's personal circumstances. Every case should be assessed individually. It is essential to obtain sound advice before you begin, because your future tax planning depends on it.

The Beckham law in 2026: rates and deadlines

In 2026 Spain's special tax regime for inbound workers works like this: income taxed under the regime pays 24% up to €600,000 a year and 47% above that. The regime lasts 6 tax years: the year of arrival and the following five. Only someone who has not been a Spanish tax resident in the previous 5 years can use it. The application must be filed within 6 months of registering with Spanish social security; missing it loses the regime for the whole period.

Who can use it after the 2023 reform

The 2023 Startups Law widened the circle. Besides employees moving under a contract with a Spanish employer, the regime is now open to:

• digital nomad visa holders working remotely for foreign clients or an employer;
• entrepreneurs whose activity is recognised as innovative or of special economic interest to Spain;
• highly qualified professionals providing services to start-ups or carrying out training and research there;
• family members of the main applicant moving with them.

More on the remote work visa is on our Spain digital nomad visa page.

What is taxed under the regime and what is not

The regime mainly taxes income from the work or activity that brought the person to Spain. Income from foreign assets, such as dividends and capital gains outside Spain, is not taxed in Spain under the regime. Wealth tax is paid only on assets located in Spain. So the regime is most valuable for people with large capital abroad and adds little for someone whose main income is Spanish-source and below the threshold where the ordinary scale is already close to 24%.

How to apply, step by step

1. Register with Spanish social security for the new job or activity: the 6-month deadline runs from that date.
2. File form 149 with the Spanish tax agency to opt into the special regime, with documents on the move and the basis of the work.
3. Receive the tax agency's confirmation, which you then give to the employer or use in your own filings.
4. File a special-regime return every year instead of the ordinary one, for all 6 years.

Family members moving with the main applicant can use the regime if they meet their own conditions, so we prepare their applications at the same time.

Common mistakes

• missing the 6-month deadline after social security registration;
• Spanish tax residence within the last 5 years, even a short one the applicant forgot about;
• an entrepreneur's activity without confirmation that it is recognised as innovative;
• changing job or basis of stay without checking whether the right to the regime survives.

Murblz specialists check whether the regime suits you, compare the burden on the ordinary scale and under the regime and file the application on time. Spanish taxes in general are covered on our taxes in Spain page.

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