What are the benefits and requirements of the so called “Beckham law”?

The Beckham Law is a special tax regime for foreign people who move to Spain for work, that was nicknamed after David Beckham. He was as one of the persons to take advantage of the special tax regime while playing for Real Madrid in 2003. As a result, he saved approximately 25 % in income taxes. The regime aims to attract highly valued employees to work in Spain.

The Beckham Law offers you the option to choose whether to be taxed as non-tax resident during the current tax year and the following five years. If you choose not to use the possibility the Beckham law offers, you become Spanish tax resident if you live more than six months in Spain. 

Possibility to avoid the wealth tax
Another advantage of the Beckham Law is that wealth tax that may still exist in some parts of Spain will not be applied to the assets you have outside of Spain. Additionally, you are not required to fill the 720 form, which means that you are not required to inform the Spanish tax authorities about the assets located outside of Spain.

The requirements for the application of Beckham Law

The main three requirements to obtain the Beckham Law status and stay non-resident are the following:

  • You have not been resident in Spain during the past 10 years.
  • You come to Spain to work in a Spanish company, where you or your family members do not own for more than 25% in total.
  • You apply for the regime at the latest 6 months after your work contract is officially registered.

Alejandro Puyo explains more on the video:

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