What is Beckham law in Spain?

To put it simply, the Beckham tax law Spain allows qualifying employees to pay a lower tax rate while living in Spain. Rather than paying the normal progressive tax, they can opt into the Beckham's Law Spain and pay just 24% on most of their income.

What is the Beckham Law in Spain 2025?

Spain's Beckham Law offers a unique tax break for foreign professionals moving to Spain. If you qualify, you can pay a flat 24% tax rate on Spanish-sourced income—rather than Spain's standard progressive rates that reach as high as 47%.

What is the Beckham rule?

How the Beckham rule works. The Beckham rule allows you to be considered a non-resident in Spain for tax purposes - even if you live there. This means you'll pay a different and flat rate of income tax compared to residents, and you'll pay tax only on income you earn in Spain rather than worldwide.

Who is eligible for the Beckham Law?

Here are the main aspects of the Beckham law:

The legislation applies to any foreigner who moves to Spain and stays for more than 183 days, providing they have not been a tax resident in Spanish territory for the previous five years.

Why is it called Beckham Law?

The "Beckham law" (Spanish: ley Beckham; Royal Decree 687/2005) is a Spanish tax decree passed in June 2005. The law gained its nickname after the footballer David Beckham became one of the first foreigners to take advantage of it.

The Beckham Law in Spain - All You Need To Know: Requirements & Step-by-Step Application Explained

How does Beckham Law in Spain work?

What is Beckham Law in Spain: How does it work? To put it simply, the Beckham tax law Spain allows qualifying employees to pay a lower tax rate while living in Spain. Rather than paying the normal progressive tax, they can opt into the Beckham's Law Spain and pay just 24% on most of their income.

What is the minimum salary for the Beckham Law?

1. Who Can Benefit? While the minimum salary requirement is generally €58,000 per year, the Beckham Law often benefits high-earning professionals such as executives, managers, and specialists in various sectors, including technology, finance, and other industries.

What is the tax loophole in Spain?

Spain's Beckham Law

With the Beckham Law, an expat can apply to be taxed as a non-Spanish resident under the Spanish Non-Resident Income Tax rules, which means they will only be taxed on income they earn in Spain, and not on income they may continue to earn elsewhere in the world.

Do expats pay taxes in Spain?

Taxation in Spain treats residents on worldwide income and nonresidents on Spanish-source income, with progressive bands set by the state and each autonomous community. In practice, your tax rate depends on where you live, while the national savings scale applies uniformly, and key filing deadlines fall in late spring.

What is the 5 year tax exemption in Spain?

Under this regime, the rigid boundaries of tax residency were redefined, allowing qualifying foreign workers to benefit from a more favorable tax treatment, similar to that of non-residents, during the first year they become residents and the following five years, depending on when they arrive in the country.

How to apply for Beckham Law in Spain?

Beckham law application in Spain: step by step

Download form 030. You can find it here. Submit it to the Tax Agency, something you can do online. Once you receive the approval from the Spanish Tax Authorities, you will have to send another application form, form 149.

How to reduce taxes in Spain?

How much is income tax in Spain?

Spanish income tax for incomes ranging from €20,201 to €35,200: 30% Spanish income tax for incomes ranging from €35,201 to €60,000: 37% Spanish income tax for incomes ranging from €60,000 to €300,000: 45% Spanish income tax for incomes over €300,000: 47%

What is the maximum rent increase in Spain 2025?

The first value of the RIUR, which takes November 2024 as a reference, has been set at 2.2%, which will be the maximum limit for rent updates in January 2025.

Does Spain tax US social security benefits?

Frequently Asked Questions. Yes, if you're a tax resident (183+ days/year), Spain taxes US Social Security as ordinary income, subject to progressive rates of 19%–47%. However, the US-Spain tax treaty allows you to claim a foreign tax credit, which can help avoid double taxation.

How do I retire to Spain from UK 2025?

How much money do you need to retire in Spain? Spain is generally more affordable than the UK for retirees, especially when it comes to everyday essentials. Costs vary widely depending on your lifestyle and location, but here are the average estimated monthly costs for 2025: Single retiree – €1,800 to €2,200.

What is the downside of retiring in Spain?

High taxes.

Tax residents in Spain pay taxes on both global and local income on a progressive scale of 19 to 47%. The maximum rate is higher than in the USA, Canada, or Malta. Residents pay a 19% income tax for the first €6,000 of taxable income. A 47% tax rate applies to income over €300,000.

Are retirees taxed in Spain?

In Spain, income tax is charged at the same rate for both general income and pensions. Therefore, pensions in Spain are subject to progressive tax rates ranging from 19% to 47%, as follows: Up to €12,450: 19%

Do you pay house taxes in Spain?

If you are a property owner in Spain, you are required to pay two different taxes; Spanish income tax (including capital gains tax) and annual real estate tax. If you do not reside in Spain, but own Spanish property, you will have to pay an extra tax, known as non-resident property tax.

How far can the taxman go back in Spain?

The statute of limitations for taxes is four years in Spain commencing from the day following the termination of the voluntary tax filing period.

Is Spain a tax haven?

Spanish Tax Authorities only tax you on your income derived within Spanish territory. Meaning, any other source of worldwide income is tax-exempt (just like with the popular UKs non-domiciled tax regime).

What is the Spanish tax for Brits?

What's Spain's 100% Tax All About? The proposed 100% property tax means that non-EU buyers, including British nationals, would need to pay a tax equal to the property's purchase price. So, let's say you choose to purchase a villa costing €200,000, you will need to pay an extra €200,000 in taxes.

What is the rose rule?

"Derrick Rose" Rule. In a rule named after Derrick Rose, accomplished players coming off their rookie contract could earn more money in the 2011 CBA. A Designated Player coming off his rookie contract may be eligible to earn 30% of the salary cap (rather than the standard 25%) if he attains certain criteria.

What is the highest paid law in the UK?

Corporate law remains one of the most lucrative areas, particularly for those working at top-tier international firms. Lawyers in this sector advise businesses on mergers, acquisitions, regulatory compliance, and corporate governance.

How long does Beckham law apply?

How long can the Beckham Law be applied? The Beckham Law regime can be applied for a maximum period of 6 years . This period includes the year in which the employee moves to Spain and the following 5 tax years.