Beckham Special Regime
A Tax Advantage for Non-Residents in Spain
The Beckham Law, officially known as Spain’s non-resident tax regime, offers an attractive tax advantage for individuals relocating to Spain. This system allows certain taxpayers to be taxed as non-residents, benefiting from lower tax rates while residing in the country.
What is the Beckham Special Regime?
Enacted in 2005 and updated through various reforms, the Beckham Law provides a unique tax status for expatriates working in Spain. Under this regime, individuals can enjoy a flat tax rate of 24% on salary income up to €600,000, with a 47% rate applied to earnings above this threshold. Unlike standard Spanish residents, beneficiaries of this law are only taxed on Spanish-sourced income and assets, while their foreign income remains untaxed in Spain.
Who Can Apply?
The Beckham Special Regime applies to professionals who relocate to Spain due to:
- A job assignment from a foreign employer.
- An appointment as a director of a company (with some restrictions on shareholding for non-trading entities).
- Undertaking an entrepreneurial activity.
- Performing highly qualified professional work in startups, research, or innovation sectors.
Family members, including spouses and children under 25 (or of any age if disabled), may also qualify under specific conditions.
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Key Benefits of the Non-Resident Tax Regime
- Lower income tax: A flat 24% tax rate on salary income up to €600,000.
- No tax on foreign income: Capital gains, dividends, and interests from outside Spain are not subject to Spanish taxation.
- Flexible duration: The tax benefits apply for up to six years (the year of application plus five additional years).
Limitations to Consider
- No access to double tax treaties: Spain will not certify tax residency for treaty purposes.
- No capital gains tax exemption on the sale of a primary residence during the Beckham Law period.
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Why Choose CB Law Firm?
At CB Law Firm, our team of tax experts can assess your eligibility, help you apply for the Beckham Special Regime, and design the right corporate structure to maximize benefits. Whether you’re an entrepreneur, investor, or professional, we guide you through the process and provide strategic tax planning to optimize your financial position.
Contact Us Today
If you’re considering moving to Spain and want to take advantage of the non-resident tax regime, contact CB Law Firm for a personalized consultation.