Living in Spain under the so‑called “Beckham law” can give high‑earning expatriates a six‑year window of reduced tax liability. The regime, originally created to attract elite athletes, now serves anyone who moves to Spain for work and meets specific conditions.
Who can qualify
- Residency gap – you must not have been tax resident in Spain for the previous 10 years.
- Job offer – a Spanish‑based employer must sponsor you; the work must be performed primarily in Spain.
- Company ownership – you cannot own more than 25 % of the sponsoring company.
- Duration – the favorable tax treatment applies for up to six years from the date of registration.
(The rule that only “15 % can be performed outside Spain” is mentioned in the source but not clearly explained; it appears to be a requirement on the proportion of work done abroad.)
Tax rates under the regime
| Income type | Tax rate | Notes |
|---|---|---|
| Earned (salary) income up to €600,000 per year | 24 % flat | Replaces the normal progressive scale that can reach 48 % in Spain. |
| Spanish‑source capital gains (e.g., sale of local assets) | 19 % | Applies to assets located in Spain. |
| Foreign‑source income (dividends, capital gains) | 0 % | Treated as non‑resident income and not taxed in Spain. |
| Foreign‑source income brought into Spain | No restriction | Unlike some remittance‑based regimes, the money can be transferred into Spain without additional tax. |
How the regime compares with other popular programs
- Portuguese Golden Visa – dividends are tax‑free, but capital gains are taxed at 28 %, and the regime is often remittance‑based, limiting the ability to bring foreign earnings into Portugal.
- UK/Irish Non‑Dom – similar remittance restrictions apply; foreign income is only taxed when brought into the country.
- Spain (Beckham law) – offers both dividend and capital‑gain exemption on foreign assets, and allows those earnings to be transferred into Spain freely.
Practical steps and caveats
- Sponsoring company – you need an existing Spanish employer or a foreign firm that can subcontract you to a Spanish entity. Forming your own Spanish company and hiring yourself is not permitted.
- Ownership limit – keep your shareholding below 25 % to remain eligible.
- Work location – the bulk of your duties must be performed in Spain; the exact allowable proportion of remote work is not clearly defined in the source.
- Exit tax – there is no exit tax on assets when you leave Spain after the six‑year period, allowing a clean cash‑out of accumulated wealth.
- Lifestyle considerations – Spain offers a larger market and broader amenities than Portugal, which may be attractive for families relocating from the UK or elsewhere.
Who should consider the Beckham law
- Professionals whose income is primarily salary from a Spanish employer but who also hold significant foreign assets (dividends, capital gains).
- Individuals seeking to bring foreign investment income into Spain without remittance penalties.
- Those who can meet the ownership and residency requirements and are comfortable with a six‑year commitment.
If you meet the eligibility criteria and your financial profile aligns with the benefits outlined, the Beckham law can provide a competitive alternative to other European residency or tax‑advantage programs.
