How does the Beckham Law work in Spain and who qualifies?

The Beckham Law (officially "Special Tax Regime for Workers Posted to Spanish Territory") is a special tax regime that allows eligible foreign workers in Spain to pay a flat 24% tax rate on Spanish-source income instead of the standard progressive rates (19-47%).

Key Benefits

Tax rate: 24% flat on Spanish-source income up to €600,000 (47% on amounts above)

Foreign income: Completely exempt from Spanish taxation—no tax on foreign investments, rental income, or business income earned outside Spain

Duration: Available for up to 6 years from the year you become a Spanish tax resident

Who Qualifies

Eligibility requirements:

1. Not lived in Spain for the previous 5 tax years
2. Moved to Spain for work purposes (employment, highly skilled work, or innovative entrepreneurship)
3. Must apply within 6 months of starting work or Social Security registration

Who can apply:

• Remote employees with digital nomad visa (must have employment contract)
• Employees of Spanish or foreign companies working in Spain
• Highly skilled professionals in R&D, innovation, or training activities (at least 40% of income from such work)
• Entrepreneurs with innovative business projects validated by Spanish authorities
• Directors and executives of Spanish companies

Who does NOT qualify:

• Freelancers/self-employed contractors (unless highly skilled/innovative projects)
• Digital nomads working as contractors (must be employees)
• Passive income recipients
• Those who lived in Spain within the past 5 years

Tax Savings Example

On €60,000 annual income:

• Standard Spanish tax: ~€13,500 (progressive rates)
• Beckham Law: €14,400 (24% flat)
• Savings: ~€8,000/year (more significant at higher incomes)

On €100,000 annual income:

• Standard Spanish tax: ~€30,000
• Beckham Law: €24,000
• Savings: ~€18,000/year

Application Process

1. Obtain work authorization and residence permit
2. Apply for Beckham Law within 6 months of:

• Starting work in Spain, OR
• Registering for Social Security

1. Submit Form 149 to the Spanish Tax Agency
2. Receive approval (usually 6 months)

Important: The 6-month deadline is strict. Missing it means you cannot apply and will pay standard progressive rates.

Combining with Digital Nomad Visa

Digital nomad visa holders CAN apply for Beckham Law if:

• They have an employment contract (not freelance/contractor)
• They meet all other eligibility criteria
• They apply within 6 months

This combination is very attractive: live in Spain legally with favorable 24% flat tax rate and foreign income completely exempt.