In the video an interview with Marilo Pardo, a Spanish tax lawyer:
What is the Beckham Law?
This is a special tax regime applicable to individuals moving to Spain under which they may be taxed as non-residents.
What are the main advantages of the special tax regime?
Flat rate of 24% up to €600,000 on the income obtained in Spain (in contrast to the regular Personal Income Tax with a progressive tax (19%-48%).
Which income is taxed in Spain?
Spanish source income +
Employment income obtained abroad is also taxed in Spain.
Which income is not taxed in Spain?
Generally speaking, all foreign-sourced income that is not employment income is not taxed in Spain.
Who can benefit from the Beckham Law?
In general, individuals who have not been tax resident in Spain in the 5 years prior to the tax year corresponding to the date of arrival in Spain and any of the following circumstances apply:
- Employees - Labor contract (company managers, employees, artists…) or statutory relationship (public servants)
- Relocations / secondments - Employees who move to Spain to work under the same employment contract as in their country of origin.
Requirements:- Employer letter ordering the transfer to the Spanish territory
- Registration of the employer at the Spanish tax office
- Digital nomads / remote workers -
Requirements- The work must be remote and telematic
- Labor contract between the teleworker and the foreign entity
- Social Security (Spain or abroad)
- Director of an entity
Requirements- Sole director or board of director
- Sole director or board of director
- Entrepreneurial Activity
Requirements- Activity of an innovative nature with special economic interest for Spain.
- Positive report issued by the “Oficina Económica y Comercial” of by the “Dirección General de Comercio Internacional e Inversiones”
- Highly qualified professional freelancers
Requirements- Working as a freelancer
- Providing services to newly created entities or 5 years old (7 for biotechnology, energy or industrial sectors).
- Not listed Graduate or postgraduate from universities and prestigious business schools
- Freelancers developing training, research, development and innovation activities
Requirements:- Services of R&D+I
- The income derived from the activity has to represent more than 40% of the total business, professional and employment income
How to apply for the especial tax regime?
- In general terms, within the 6 months since the date of the registration at the social security.
- Until the 16th June 2024, through the tax form 149.
- For those that already have applied for the Beckham Law regime, they should send the documentation to the tax office until the 16th June 2024
To book a consultation on expat taxes in Spain, go to our services page, choose "Spain" and proceed to book.
