Tax obligations in Spain for individuals covered by the Beckham Law

This special regime allows certain taxpayers who move to Spain to be taxed as non-residents, which can be advantageous depending on their individual circumstances and income levels. Below is a summary of the requirements and tax obligations for taxpayers under the Beckham Law regime.

Beckham Law requirements

Relocation must occur due to:

Employment-related reasons in Spain;

Appointment as a director of a company (not patrimonial or unrelated);

Performing an economic activity in Spain classified as entrepreneurial;

Performing an economic activity as a highly qualified professional, meeting the requirements set by law;

Not having been a tax resident in Spain in the previous five fiscal years; or

Electing this regime within six months of starting the activity in Spain.

Taxation

Taxpayers are taxed as non-residents at a flat rate of 24% on the first EUR 600,000 of income earned in Spain, and 47% on income exceeding this amount. Only income earned in Spain is taxed, excluding worldwide income, which is a significant advantage for this type of taxpayer. However, it is important to note that under this regime, all income from employment or entrepreneurial activities performed in Spain is deemed to be obtained in Spain, even if its source is foreign.

Income tax

Employment income and other earnings obtained in Spain are subject to the Beckham Law. LIRPF progressive rates, which can be much higher, do not apply, making this regime attractive for individuals with certain income levels. 

Taxpayers under the Beckham Law must file a non-resident income tax return using Form 151, following the same deadlines as Spanish residents filing their income tax returns.

Beyond personal income tax, the Beckham Law provides specific treatment for other taxes, such as wealth tax or the solidarity tax on large fortunes, as well as informational obligations concerning assets and rights abroad, including Forms 720 and 721 for virtual currencies.

Wealth tax

Taxpayers are subject to wealth tax on a real obligation basis, meaning only assets located in Spain are taxed, not the taxpayer’s worldwide assets.

Solidarity tax on large fortunes

Taxpayers are liable for the solidarity tax on large fortunes based on the same taxation rules for Spanish-located assets that are taxable under the wealth tax, excluding worldwide assets.

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Javier has a degree in Business Management from the University of Malaga. With over 23 years of experience, he specialises in accounting and tax consultancy for individuals and companies across various sectors. He continuously enhances his expertise.