The Spain Special Expat Regime Tax, also called the Beckham Law, is a special tax benefit designed to attract foreign workers and professionals to Spain. If you qualify, you pay a reduced flat tax rate of 24% on your Spanish income for up to six years instead of Spain’s standard progressive rates, which reach as high as 47%. This means U.S citizens can also enjoy significant tax savings.
This guide will explain who qualifies for the regime, the documents needed, the application process, and more important information to help understand how to take advantage of this tax regime.
This is what will be covered:
- What is Spain special expat regime tax?
- Who qualifies for the Spain Beckham Law?
- What income is taxed under the Spain Beckham law?
- Benefits of Spain Special Expat Regime Tax
- How to Apply for the Special Tax Regime: Step by Step
- Spain Special Tax Regime Requirements
- Spain Special Tax Regime Required Documents
- Spain Special Regime Tax Forms
- When is the deadline for the Spain Beckham Law?
- Double taxation and Spain special expat regime tax
- Beckham law Spain vs regular tax
Quick Facts: Spain Beckham Law
What is the Spain Beckham Law Tax?
The Spain “Beckham Law,” also known as the Special Expat Regime Tax, or the Special Tax Regime for Inbound Worker is a tax incentive for foreign workers who move to Spain for employment. Under this regime, eligible individuals are taxed as non-residents for Spanish tax purposes, even though they live in Spain. This allows them to pay a flat tax rate of 24% on their Spanish-sourced income up to €600,000, and 47% on any amount above that.
Foreign income, such as investment or rental income earned outside Spain, is exempt. The regime is available for up to six years and is designed to attract international talent and skilled professionals to Spain. To qualify, applicants must not have been tax residents in Spain during the previous five years and must have a job offer or assignment from a Spanish company.
Who qualifies for the Spain Beckham Law?
To qualify, applicants must meet the following Beckham Law Spain requirements:
- Not having had tax residence in Spain for the past five years.
- Perform at least 85% of your work in Spain.
- Be moving to Spain for work: Here, you will need to show a job contract with a Spanish company or show evidence of a foreign company assigning you to work in a Spanish branch specifically.
- Does not own over 25% of a Spanish company (for company directors).
In general, freelancers do not meet the criteria for the Beckham Law in Spain, unless they have a Spain Digital Nomad Visa.
Who does not qualify for the Spain Beckham Law?
You cannot benefit from the Spanish Special Tax Regime if you fall into any of these categories:
- Professional athletes under the special employment relationship of RD 1006/1985.
- People who were Spanish tax residents in the last 5 tax years.
- Self-employed individuals who do not fit the expanded Startup-Law categories (entrepreneur, qualified professional, or investor).
- Directors who own 25% or more of an asset-holding company (patrimonial entity).
- For applicants who miss the filing window, failure to opt in on time, such as not filing the Form 149 within 6 months of Spanish Social Security registration/start of work, means you can’t apply.
- Individuals earning income from a Spanish permanent establishment outside qualifying employment (the regime targets employment income, not PE-based business income).
What income is taxed under the Spain Beckham law?
Under this regime, only income earned from Spanish sources is subject to taxation:
Spanish employment Income: This refers to the salary, wages, bonuses, or other compensation you earn from working for a company or employer based in Spain.
- Taxed at a flat rate of 24% on the first €600,000 annually.
- This applies to salaries, bonuses, and other compensation from a Spanish employer.
Spanish-sourced investment income & capital gains: Income from investments located in Spain such as dividends, interest, and rental income, is taxed at the regular progressive rates for capital income:
- 28% above €300,000
- 19% on the first €6,000
- 21% from €6,001 to €50,000
- 23% from €50,001 to €200,000
- 27% from €200,001 to €300,000
Which income is not taxed?
One of the major advantages of the Spain Beckham Law is the exemption on most foreign income, which include:
- Foreign employment income: Salaries or earnings from work performed outside of Spain are not taxed, even if paid during Spanish residency under the regime.
- Foreign investment income & capital gains: Dividends, interest, rental income, and gains from the sale of foreign assets (e.g. stocks, properties) are not taxed in Spain.
- Wealth tax exemption: Foreign assets are generally excluded from Spanish Wealth Tax, a significant benefit for high-net-worth individuals with substantial overseas holdings.
Benefits of Spain Special Expat Regime Tax
The benefits of Spain special expat regime include:
- Lower tax rate: Instead of paying up to 47% in taxes, eligible expats pay a flat 24% tax on income up to €600,000.
- Only Spanish income is taxed: Unlike regular Spanish tax residents, who pay taxes on their worldwide income, those under this regime are taxed only on income earned in Spain.
- Capital gains and foreign dividends are exempt: If you earn capital gains or dividends from foreign sources, you won’t be taxed on them in Spain.
- No wealth tax on foreign assets: While Spain has a wealth tax, under this regime, it only applies to assets located in Spain.
- Six-year validity: The duration of benefits under Beckham Law Spain lasts for the year you move plus the following five years.
Can family members be included in the Spain Special Expat regime?
Yes, family members can be included under Spain’s Special Expat Regime. This includes a spouse or registered partner and children under 25, or any age if they have a disability. They must move to Spain with the main applicant and become Spanish tax residents to receive the same tax benefits.
How to Apply for the Special Tax Regime: Step by Step
If you meet the requirements, you must apply for the Beckham tax treatment within six months of starting your job in Spain. Here’s how:
- Step One: Ensure you qualify: Make sure you meet the eligibility criteria, such as having not been a tax resident in Spain for the past five years and having a job contract with a Spanish company or foreign company assigning you to Spain.
- Step two: Obtain a Spanish Foreign Identity Number (NIE): Apply for your NIE, which is required for all tax-related matters in Spain. This can take a few days to a few weeks, depending on appointment availability.
- Step Three: Register for tax purposes: Complete Form 030 to register with the Spanish tax authorities before applying for the special expat regime. This form officially records your tax residency status, provides your tax identification number, and ensures that your income will be correctly taxed under Spanish law.
- Step four: Fill out Form 149: Complete Form 149 to request the Special Expat Regime tax treatment. Ensure all information is accurate. Consider seeking help from a tax professional to avoid errors.
- Step five: Submit the form online: The Spanish tax authorities (Agencia Tributaria) accept electronic submissions.
- Step six: Await approval: Once submitted, your application will be processed. The estimated processing time is about one to two months, but it may vary. Once approved, you’ll be taxed as a non-resident for up to six years.
If you don’t meet the above criteria but still want to move to Spain, the Spain Non-Lucrative Visa is another option for those with enough funds. This visa is ideal for retirees and those with enough funds to support themselves. The non-lucrative visa is a great option for those wanting to enjoy all Spain has to offer without needing to work.
Spain Special Tax Regime Requirements
All applicants and their dependents are required to spend more than 183 days in Spain to qualify for the special tax, in line with the Spain 183-day rule.
Once you receive confirmation, you are required to submit an annual tax return under Beckham Law Spain for income tax using Form 151.
Each year your tax return must be submitted between the tax period April 6th and June 30th of the year following the tax year. However, it’s important to note that while you can submit a return for your personal income tax you are not eligible for reductions or deductions under the special tax regime.
Spain Special Tax Regime Required Documents
If you obtain income from a Spanish company, you must submit supporting documents from your employer that confirm:
- Employment contract with a Spanish company to show you’re hired to work in Spain.
- Certificate of commencement of employment from your Spanish employer.
- Passport and NIE (Foreigner Identification Number).
- Application form (Modelo 149) to request inclusion in the special tax regime.
- Proof of tax residency abroad for the previous 5 years.
- Social Security registration in Spain or certificate of coverage from your home country (if applicable).
If your employer has assigned you to work in Spain, you must also include a copy of the posting letter from your employer and a supporting document issued by the non-Spanish company.
Spain Special Regime Tax Forms
To apply for Spain’s Special Tax Regime the key tax residence form is:
- Modelo 149 — This is the official application form to request inclusion in the Special Expat Tax Regime. It must be submitted to the Spanish Tax Agency within six months of starting work or registering with Social Security in Spain.
Other relevant forms related to tax residency and income reporting may include:
- Modelo 030 — Used to register or update your personal tax information with the Spanish tax authorities.
- Modelo 100 — Annual personal income tax return form for residents.
- Modelo 210 — For non-residents who have Spanish income. This is not directly related to the special regime but important if you have income in Spain before residency.
When is the deadline for the Spain Beckham Law?
Under the Beckham Law (Spain’s Special Expat Tax Regime), you must apply within six months from the start date of your registration with Spanish Social Security or from the official start of your employment in Spain, whichever applies. Missing this deadline may disqualify you from the regime.
Under the Special Tax Regime, you are required to file an annual income tax return using Modelo 100, declaring your Spanish-sourced income and applying the flat tax rates of 24% on income up to €600,000 and 47% on amounts above that. Additionally, you must keep your tax residence information updated with forms like Modelo 030 if your personal or address details change, and submit any other necessary tax declarations for additional income or assets in Spain.
How long can you benefit from the Spain Special Expat Regime Tax?
Under Spain’s Special Tax Regime eligible people can benefit for a total of six years. This period includes the first year in which you become a tax resident in Spain, plus the following five consecutive tax years. After this six-year period, the special regime cannot be extended or reapplied.
However, if you are excluded from the regime due to non-compliance with its conditions, you will lose the benefits immediately, and the exclusion will take effect in the tax period in which the non-compliance occurs. It’s important to note that once you opt out or are excluded, you cannot reapply for the regime in the future.
Double Taxation and Spain Special Expat Regime Tax
One of the drawbacks of Spain special expat regime tax is that eligible applicants do not benefit from any of Spain’s double taxation agreements.
Despite being a tax resident in Spain, you are essentially a non-resident of Spain, meaning you can’t benefit from the double taxation treaties because of the non-resident income tax regime. What does this mean?
- Foreign income: You’ll still need to report and pay taxes on your foreign employment income in your home country, as Spain will not offer relief under DTA provisions.
- Tax credits: If you’re taxed in your home country on the same taxable income that you earn in Spain, you cannot use Spain’s double taxation agreements (DTAs) to reduce the tax burden of taxes paid abroad. Instead, you may need to rely on tax credits or deductions offered by your home country, depending on the tax laws there.
Working with a tax specialist can help understand what you are liable for and whether applying for Beckham Law Spain with the Spanish tax agency would work for your circumstances.
Beckham Law Spain vs Regular Tax
Understanding Beckham Law Spain vs regular tax can help you see the true expat tax benefits in Spain under Beckham Law:
| Taxation | Beckham Law | Regular Taxation |
|---|---|---|
| Tax rate | 24% (up to €600,000) | 19% – 47% (progressive) |
| Worldwide income taxed? | No | Yes |
| Wealth tax on foreign assets? | No | Yes |
| Max duration | 6 years | Permanent |
| Double taxation treaty benefits | No | Yes |
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