The Spain Special Expat Regime Tax, often called the Beckham Law, is a tax benefit designed to attract foreign workers and professionals to Spain. It allows eligible expats to pay a reduced flat tax rate on their Spanish income for up to six years, which makes it easier and more affordable to live and work in the country.

Some of the benefits include significantly lower tax rates compared to regular residents with a flat rate of 24 percent on income up to 600,000 euros, simplified tax filing, and exemption from taxation on most foreign income.

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?

The Spain Special Expat Regime Tax, also known as the Special Tax Regime for Displaced Workers or the “Beckham Law,” 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?

In order to meet the eligibility for Spain’s special expat tax regime, you must meet the following:

  • Not have 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.
  • Not own more than 25% of a Spanish company (for company directors).

In general, freelancers do not meet the criteria for Beckham Law Spain, unless they have a Spain Digital Nomad Visa.

Read our Spain Digital Nomad Guide

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What income is taxed and what’s exempt under the Spain Beckham law?

Under Spain’s Beckham Law the following income rules apply on which income is taxed and which is exempt from taxation.

Taxed income

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:

  • 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
  • 28% above €300,000

Income that 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 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. 

How to Apply for the Special Tax Regime for Displaced Workers: Step by Step

If you meet the requirements, you must apply within six months of starting your job in Spain. Here’s how:

  1. 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.
  2. 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.
  3. Step three: 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.
  4. Step four: Submit the form online: The Spanish tax authorities (Agencia Tributaria) accepts electronic submissions.
  5. Step five: Await approval: Once submitted, your application will be processed. The estimated processing time is about one to two months but 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.

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

A strip with a lined pattern on the floor and palm trees on the side in Alicante Spain.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 (Beckham Law), 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 right time to apply for the Beckham Law?

The right time to apply for the Beckham Law (Spain’s Special Expat Tax Regime) is 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 in understanding 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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Frequently Asked Questions About Spain Special Expat Regime Tax

What is the Beckham rule in Spain?

The Beckham Rule, officially known as Spain’s Special Expat Regime, is a tax incentive that allows qualifying foreign workers to pay a flat 24% income tax rate on their Spanish-source income for up to six years. This replaces the progressive tax rates which can go up to 47%.

Who is eligible for the Spain Special Expat Regime Tax?

To qualify for Spain’s Special Expat Regime, applicants must meet the following criteria:

  • Not have been a tax resident 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 Spanish branch specifically.
  • Not own more than 25% of a Spanish company (for company directors).

What is the tax rate for expats under the Spain Special Expat Regime?

Applicants under the special tax regime in Spain pay 24% on Spanish income up to €600,000. Income that exceeds this falls under the regular income tax of 47%. Investment income and capital gains tax are taxed between 19%-28%.

What income is taxed under Spain's Special Expat Regime?

Only Spanish sourced income derived from a permanent establishment in a Spanish territory can be taxed under Spain’s special expat regime. Only under special circumstances can the director’s fees be included.

Are foreign-source incomes included in the Spain Special Expat Regime Tax?

No, foreign-source income is not covered under the 24% tax regime. However, capital gains and investment income from foreign sources are still subject to Spain’s standard tax rates, ranging from 19% to 28%.

What is the duration of the Spain Special Expat Regime Tax benefits?

The inbound expatriate regime allows individuals who move to Spain and meet specific requirements to be considered tax residents while benefiting from non-resident tax treatment. This applies for the tax year in which they establish tax residency and the following five tax years.

Does the Spain Special Expat Regime Tax apply to digital nomads?

Yes, but only if they meet the eligibility criteria and have the Spanish digital nomad visa.

Can freelancers benefit from Spain’s Special Expat Regime Tax?

No, freelancers and self-employed individuals do not qualify for the Beckham Rule, as it is designed for employees of companies. However, under Spain’s new digital nomad visa, some remote workers employed by foreign companies may still benefit.

Do expats need to be employed by a Spanish company to qualify for the Special Expat Regime?

Not necessarily. Expats can qualify if they:

  • Are hired by a Spanish company.
  • Are assigned to Spain by a foreign company with a branch in Spain.
  • Become a director of a Spanish company (with ownership limitations).

How does the Spain Special Expat Regime Tax compare to normal income tax rates?

Expats pay a flat 24% tax on Spanish-source income up to €600,000 (47% above this threshold). Non-expat residents in Spain pay progressive income tax rates ranging from 19% to 47%.

Can the Spain Special Expat Regime Tax be extended beyond six years?

No, the special tax regime is strictly limited to six years (the year of arrival plus five additional years). After this period, expats must pay standard Spanish income tax rates as full tax residents.

Are there drawbacks of Spain Special Expat Regime Tax?

Yes, there are pros and cons of Beckham Law Spain. The drawbacks of the special tax regime in Spain include:

  • Six-year limitation
  • No deductions or tax reductions
  • No access to double taxation treaties
  • Foreign salaries transferred to Spain are subject to regular income tax

What is the gross income limit for Beckham Law Spain?

The maximum income under the Spain expat tax scheme is up to €600,000. Under the Beckham Law in Spain, the flat tax rate of 24% applies to income earned in Spain up to €600,000. Any income above this threshold is subject to the regular progressive income tax rates.

What is the process to apply for the Beckham Law in Spain?

The application process is as follows:

  • Ensure you qualify
  • Obtain a Spanish Foreign Identity Number (NIE)
  • Fill out Form 149
  • Submit the form online
  • Await approval