The Beckham Law in Spain: who qualifies and how to apply

The Beckham Law in Spain: who qualifies and how to apply

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Taking a job in Spain brings up an immediate concern: how much tax will you actually pay. For many incoming professionals, the answer comes ver web down to one special rule — the special expat tax regime, better known as the Beckham Law.

The mechanism is simple: rather than paying progressive resident rates on everything you earn globally, you are taxed like a non-resident on your Spanish-source employment income, at a flat rate of 24 percent on the first 600,000 euros and 47% above that. For higher earners, the difference is substantial.

Not everyone qualifies. In broad terms, you must not have been a Spanish tax resident in the five years before the move, the move has to be tied to a job offer, a posting or a company directorship, and the work must be carried out mainly in Spain. The latest changes have widened the scope to digital nomads and some self-employed profiles.

The deadline is where most applications fail. You have to apply within six months of registering with Spanish social security. Let that window close and you cannot recover it later. The benefit then runs for a total of six tax years.

It does not suit every case. If you have significant income outside Spain, the effect on wealth tax and on the 720 declaration should be calculated before deciding. Running the numbers in advance is usually time well spent.

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