Spain's Beckham Law: requirements, deadlines and what it actually saves you

Spain's Beckham Law: requirements, deadlines and what it actually saves you

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Taking a job in Spain brings up an immediate concern: what your tax bill will look like. For many incoming professionals, the answer depends on a single regime — the impatriate regime, commonly called the Beckham Law.

The idea is straightforward: rather than paying progressive resident rates on everything you earn globally, you are treated as a non-resident for tax purposes on your Spanish-source employment income, at a fixed rate of 24 percent on the first 600,000 euros and 47% above that. If your salary is significant, the saving can be considerable.

Not everyone qualifies. As a general rule, 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 activity must be performed principally on Spanish territory. ver más Recent reforms opened the door to digital nomads and some self-employed profiles.

The deadline is where most applications fail. The election must be filed within six months of starting the activity that triggers residence. Let that window close and the regime is lost for the whole assignment. Once granted, it applies for the year of arrival and the following five.

It is not automatically the better option. If you have significant income outside Spain, the interaction with wealth tax and reporting duties needs to be modelled first. Running the numbers in advance is usually time well spent.

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