The Beckham Law in Spain: Complete and Updated Guide for 2025
The Beckham Law, officially known as the Special Regime for Workers Posted to Spanish Territory or “impatriate regime”, is one of the most attractive tax tools that Spain offers to attract international talent, investors and highly qualified professionals. Since its creation in 2004 until the recent reforms of 2022, this regulation has evolved to adapt to the economic and social needs of Spain, becoming a key incentive for those looking to establish themselves in Spain without bearing an excessive tax burden. In this article we will explore in detail what the Beckham Law is, its requirements, benefits, limitations, and how it has changed over time.
What is the Beckham Law?
The Beckham Law is named after the famous footballer David Beckham, who was one of the first prominent beneficiaries of this tax regime after his signing for Real Madrid in 2003. However, its scope goes far beyond the sporting field. This is a special tax regime designed for people who move to Spain for work or business reasons, allowing them to pay taxes as non-residents for a certain period, which means paying lower taxes compared to the general Personal Income Tax (IRPF) system.
Essentially, this regime allows beneficiaries to pay taxes only on income generated in Spain at a flat rate of 24% up to the first 600,000 euros (and 47% for the excess), instead of being subject to the progressive IRPF brackets, which can reach up to 47% for high incomes. In addition, income obtained outside Spain is exempt from taxation, making it especially attractive for those with international income, such as dividends, interest or capital gains abroad.
History and Evolution of the Beckham Law
The Beckham Law was introduced by Royal Decree 687/2005, as part of a strategy to make Spain a competitive destination for foreign professionals. Initially, it was intended to attract elite athletes and high-profile executives, but over time it has been expanded to include other groups, such as entrepreneurs and digital nomads.
In 2015, the restriction that prevented professional athletes from benefiting from the regime was removed, marking a significant change. However, the most relevant reform came with Law 28/2022, of December 21, known as the “Startups Law”, which modernized and made the requirements more flexible to adapt to new economic realities. These modifications, in force since 2023, expanded access to the regime to new groups and reduced the minimum period of no prior residence in Spain from 10 to 5 years, among other changes.
Requirements to Benefit from the Beckham Law in 2025
To benefit from this special regime, it is necessary to meet a series of conditions established by the Tax Agency. Below we detail the updated requirements:
1. Not having been a tax resident in Spain for the last 5 years: Before the 2022 reform, this period was 10 years. The reduction to 5 years has opened the door to more people who have recently lived outside Spain.
2. Moving to Spain for work or professional reasons: This includes:
o An employment contract with a Spanish company.
o The performance of activities as a director of a company in Spain.
o Carrying out economic activities as an entrepreneur or highly qualified professional, especially in the context of emerging companies (startups).
3. Formal application to the Tax Agency: The interested party must submit the corresponding form within a maximum period of 6 months from the start of their work activity in Spain or from their registration with Social Security.
4. Not obtaining income classified as derived from a permanent establishment in Spain: This excludes those who operate businesses with a fixed structure in the country, except in specific cases.
5. Effective residence in Spain: Even if you are taxed as a non-resident, the beneficiary must spend at least 183 days a year in Spanish territory to be considered a tax resident and benefit from the regime.
Benefits of the Beckham Law
The appeal of this regime lies in its tax advantages, which make it an ideal option for high-level professionals, investors and entrepreneurs. Some of the most notable benefits are:
1. Favorable Taxation
• Income obtained in Spain is taxed at a fixed rate of 24% up to 600,000 euros, compared to the progressive IRPF brackets that can reach 47% for high incomes.
• From 600,000 euros, the rate rises to 47%, but remains competitive compared to other European countries.
2. Foreign Income Exemption
• Capital gains, dividends or interest generated outside Spain are not subject to taxation, provided they do not come from tax havens. This is especially useful for investors with international portfolios.
3. Duration of the Benefit
• The regime applies during the year of transfer and the following 5 fiscal years, which adds up to a total of 6 years of tax advantages.
4. Attractiveness for New Groups
• Since the 2022 reform, groups such as digital nomads, entrepreneurs and highly qualified professionals who provide services to startups have been included, expanding its scope beyond traditional expatriate executives.
Limitations and Considerations
Although the Beckham Law offers significant advantages, it also has certain limitations that should be taken into account:
1. Non-Application of Wealth Tax: By being taxed as a non-resident, beneficiaries cannot deduct certain Wealth Tax allowances, which can be a disadvantage for those who own large assets in Spain.
2. Exclusion of Local Passive Income: If the beneficiary generates passive income (such as rent) in Spain, these will be taxed under the general regime.
3. Temporary Requirements: The need to not have been a resident in the last 5 years limits its application to those who have recently lived in Spain.
4. Review by the Tax Agency: The Tax Agency can investigate whether the transfer is genuine or whether it is a tax optimization strategy without real economic activity.
Recent Changes: The 2022 Reform
Law 28/2022 brought with it a series of modifications that have revitalized the expatriate regime. These are the main aspects of these modifications:
• Reduction of the Non-Residency Period: From 10 to 5 years, facilitating access to those who have been outside Spain for less time.
• Inclusion of New Groups: Teleworkers (digital nomads), entrepreneurs and professionals who work for startups can now apply, provided they meet the requirements of high qualification or innovation.
• Flexibility for Administrators: Company administrators can benefit, even if they own a minority stake in the company, provided that it is not a patrimonial entity.
These reforms reflect Spain’s interest in attracting talent in strategic sectors such as technology and innovation, aligning with European Union policies to promote economic competitiveness.
How to Apply for the Beckham Law?
The application process requires precision to avoid errors that may lead to rejections. At Vázquez & Barba we are experts in processing these applications. To schedule your consultation and make sure you can be a beneficiary of the Beckham Law, write to INFO@VBILC.COM
The general steps to take into account are:
1. Prepare the Documentation: Includes the employment contract, certificate of registration with Social Security, passport and, in some cases, a certificate of non-tax residence in Spain in the last 5 years.
2. Submit the Corresponding Model: This form must be sent electronically through the electronic headquarters of the Tax Agency within 6 months after the start of the activity in Spain.
3. Wait for Resolution: The Treasury has a period of 10 business days to respond, although in practice it may take longer if clarifications are requested.
We recommend that you have specialized advice to ensure that the application meets all the requirements and optimize tax planning.
Practical Examples
To better understand how the Beckham Law works, let’s look at some hypothetical cases:
1. Expatriate Executive: A Latin American executive moves to Madrid with an annual salary of 400,000 euros. Under the general regime, he would pay up to 47% of personal income tax (approximately 188,000 euros). Under the Beckham Law, he is taxed at 24%, which reduces his tax bill to 96,000 euros, saving 92,000 euros annually.
2. Digital Nomad: An American programmer works remotely for a Spanish startup from Barcelona, earning 100,000 euros per year and receiving 50,000 euros in dividends from the US. He pays 24,000 euros in taxes on his Spanish salary, while the dividends are exempt.
3. Entrepreneurial Investor: A Colombian creates a company in Spain and receives 300,000 euros as an administrator, in addition to 200,000 euros in foreign income. He pays 72,000 euros in taxes on his Spanish salary, but pays nothing on foreign income.
Comparison with Other Countries
Spain is not the only country with attractive tax regimes for expatriates; countries such as Portugal (with its NHR regime, which offers a 20% tax rate for certain incomes) or Italy (with a fixed rate of 100,000 euros per year for foreign income) compete in this area. However, the Beckham Law stands out for its combination of low rates and exemption of foreign income, especially after the 2022 reforms, which align it with global trends in attracting talent.
Expert Opinions
The Beckham Law has been key in cases such as the return of Spanish businessmen who had been abroad for years, such as Enrique Bañuelos, who took advantage of the regime after more than a decade in London. We also highlight its usefulness for non-EU citizens seeking to establish themselves in Spain without losing tax competitiveness.
Conclusion
The Beckham Law in 2025 remains a powerful tool to attract talent and investment to Spain. With its recent updates, it has become a more accessible and flexible option, adapted to the demands of the global market. Whether you are an executive, an entrepreneur or a digital nomad, this regime offers a unique opportunity to optimize your tax burden while enjoying the advantages of living in Spain. However, its application requires careful planning and the support of tax experts such as those you have in the Vázquez & Barba team to maximize its benefits.
Are you thinking about applying for the Beckham Law? Contact us by filling out the contact form below and do not hesitate to schedule a consultation with one of our specialized advisors to take the next step towards your new life in Spain.
