What Is the Beckham Law?
The so-called Beckham Law refers to the special tax regime applicable to individuals who move to Spain for work purposes. It is currently regulated under Article 93 of the Spanish Personal Income Tax Law (Law 35/2006). This measure was designed to attract foreign talent by offering certain tax advantages for a limited period.
This regime allows taxpayers who relocate to Spain for professional reasons to pay taxes only on income earned within Spanish territory, and to do so at a reduced flat rate, instead of being taxed as full tax residents under the general progressive income tax scale.
Origin of the inbound tax regime
This regime was introduced in 2005 with the goal of encouraging the arrival of qualified professionals to Spain, particularly in strategic sectors. It gained media attention when footballer David Beckham took advantage of its tax benefits after signing with Real Madrid, giving rise to the nickname “Beckham Law.”
Although the rules have been amended several times, the regime remains in force—albeit with limitations—and continues to be a relevant option for many foreign workers.
Purpose and legal evolution
The main purpose of the inbound tax regime is to enhance Spain’s tax competitiveness compared to other European countries when it comes to attracting international talent. While it was initially very flexible, reforms over the years have introduced restrictions for certain groups (such as professional athletes), tightened eligibility requirements, and aimed to prevent abuse of the benefit.
Today, it remains a useful tool for companies hiring international profiles, as well as for professionals relocating to Spain for work-related reasons.
Who Can Apply for the Beckham Law?
The special tax regime for inbound taxpayers, known as the Beckham Law, is aimed at individuals who move their tax residence to Spain as a result of a work-related relocation or appointment as company directors. This regime is not applied automatically; it must be expressly requested by the taxpayer before the Spanish Tax Agency.
General Requirements
To benefit from the Beckham Law, the following requirements must be met:
- Not have been a tax resident in Spain during the five years prior to the relocation.
- Move to Spain as a result of a job offer, an international assignment within the same company, or appointment as a director of a Spanish company.
- The work or professional activity must be effectively carried out in Spain.
- The application must be submitted within six months from the date of registration with Social Security or the corresponding scheme.
- Not receive income classified as obtained through a permanent establishment in Spanish territory.
This regime may also apply to employees who work remotely from Spain for a foreign company, provided they meet the legal requirements.
Excluded or Inapplicable Cases
Certain groups or situations cannot benefit from this special tax regime. These include:
- Professional athletes (excluded since the 2010 reform).
- Self-employed individuals and freelancers coming to carry out economic activities on their own.
- Company directors holding a significant share (more than 25%).
These restrictions aim to prevent abuse of the regime by high-income individuals or those with complex tax structures.
Duration of the Special Tax Regime
Following the latest amendment, the duration of the regime has been extended: taxpayers can benefit from the Beckham Law’s tax advantages for six consecutive tax years, starting from the year in which the change of tax residence occurs.
After this period, the taxpayer will be subject to taxation as a regular Spanish tax resident under the standard personal income tax (IRPF) regime.
Tax Advantages of the Beckham Law
The main appeal of the Beckham Law lies in the tax advantages it offers to foreign workers who relocate to Spain. This special regime allows for more favorable taxation compared to the general Spanish income tax (IRPF), which can lead to substantial savings during the first years of residency.
Reduced Tax Rate
Under this regime, the taxpayer is taxed as if they were a non-resident, but with some specific features. Instead of applying the progressive IRPF scale (which can exceed 45% in certain brackets), beneficiaries are taxed at a flat rate of 24% on the first €600,000 of annual employment income. Income exceeding that threshold is taxed at 47%.
This fixed rate is especially advantageous for mid- to high-income earners who, under the general regime, would be taxed at a higher rate based on their income level.
Exclusion of Foreign Income
Another significant benefit is that taxpayers under this regime are only taxed on income earned in Spain. Income generated abroad—such as interest, dividends, or rental income from foreign properties—is not taxed in Spain, unless it originates from Spanish sources.
This feature makes the Beckham Law an effective tool for protecting international assets and efficiently planning global taxation.
Comparison with the Ordinary Tax Regime
| Aspect | Ordinary IRPF Regime | Beckham Law (Inbound Regime) |
| Tax Rate | Progressive scale (up to 47%) | Flat rate 24% up to €600,000, 47% thereafter |
| Taxation of Foreign Income | Yes | No (only income earned in Spain) |
| Duration of Regime | Permanent | 6 years |
| Asset Declaration (Form 720) | Mandatory | Not required |
This comparison highlights why many people relocating to Spain for professional reasons consider the Beckham Law a fiscally attractive option, especially during their initial years in the country.
Procedure for Applying for the Beckham Law
Applying for the special inbound tax regime is not automatic. It requires a formal application to the Spanish Tax Agency, within the deadlines and under the conditions established by law. It is essential to submit the correct documentation, as any error or delay may result in losing the right to benefit from this regime.
Required Documentation
To apply for the Beckham Law, the inbound worker must submit the following:
- Form 149, duly completed, which is the official form to opt for the special tax regime.
- Proof of work-related relocation, such as an employment contract, assignment letter, or appointment as a company director.
- Certificate of residence registration (empadronamiento) or any evidence of effective relocation to Spain.
- In the case of directors, company documentation (shares, corporate structure, etc.) to prove compliance with the requirements.
This documentation must be submitted to the Spanish Tax Agency along with any other supporting documents related to the reason and conditions of the relocation.
Deadlines and Submission to the Tax Agency
The application must be submitted within six calendar months from the date of registration with Spanish Social Security or, alternatively, from registration in the corresponding system if the worker is not contributing to Spanish Social Security.
The submission is done online through the Spanish Tax Agency’s Electronic Headquarters, using a digital certificate, Cl@ve PIN, or legal representation system if processed through an authorized lawyer or tax advisor.
Once the application is approved, the Tax Agency will issue a resolution confirming the grant of the regime. From that point on, the worker must file Form 151 annually, corresponding to the special tax regime for inbound taxpayers.
Legal and Tax Considerations
Although the Beckham Law offers significant tax advantages, it is also important to consider several legal aspects and limitations that may affect its applicability and suitability. A personalized analysis is essential to avoid mistakes and optimize its use within the taxpayer’s overall tax planning.
Special Cases (Remote Workers, Athletes, etc.)
Following recent legal reforms, new pathways have been created for certain professional profiles to access the inbound tax regime:
- International remote workers: The Startup Law has expanded access to the regime for professionals who relocate to Spain to work remotely for a foreign company. In these cases, it is essential to provide evidence of the employment relationship and the link with the company based outside Spain.
- Professional athletes: Since 2010, elite athletes can no longer benefit from the Beckham Law, in response to criticism over its use in highly paid professional sports contexts.
- Company directors: They can only benefit from the regime if they do not hold a significant stake in the company (less than 25%) and meet all other legal requirements.
Consequences of Failing to Meet Requirements
Failure to meet any of the requirements during the application period—such as no longer residing in Spain or receiving income through a permanent establishment—may lead to the automatic loss of the special tax regime.
This would result in retroactive taxation as an ordinary Spanish tax resident, including the need to regularize taxes and potentially pay interest and penalties.
For this reason, it is advisable to conduct an annual review of the taxpayer’s personal and tax situation, especially if circumstances change (e.g., changing employers, modifying residence, or starting a self-employed business activity).
Possible Reforms or Changes in 2025
In the current context, the inbound tax regime continues to be the subject of political and fiscal debate, especially regarding its scope and the types of individuals eligible to benefit from it. Although no immediate changes have been announced for 2025, it is important to stay informed about potential legislative amendments that could restrict, expand, or adjust how this tax regime is applied.
Having up-to-date legal advice is key to ensuring proper application and making the most of its benefits while it remains in force.
Tax Lawyer in Ibiza for the Beckham Law
Having a tax lawyer in Ibiza specialized in the Beckham Law is essential to fully benefit from this regime. In a region like Ibiza, where many foreign professionals, entrepreneurs, and digital nomads live, this kind of tax planning can make a significant difference.
At Rodríguez Tur Abogados, we offer personalized tax advice in Ibiza for inbound workers, executives, investors, and professionals looking to establish their residence in Spain. We analyze each case individually to determine whether the inbound tax regime is the most advantageous option, and we manage the entire application process with the Spanish Tax Agency.
Is It Worth Applying for the Beckham Law in 2025?
The answer depends on the taxpayer’s profile and income. For professionals with medium to high earnings who generate most of their income in Spain and do not have complex international assets, the regime remains highly beneficial in 2025.
On the other hand, for those with significant investments or foreign income sources, it is crucial to analyze whether taxation under the non-resident regime would provide better tax optimization than full residency, or if there is a risk of incompatibility with other tax benefits.
Medium- and long-term planning, the expected length of stay in Spain, and potential legal reforms are also important factors to consider.
Legal and Tax Recommendation
At Rodríguez Tur Abogados, we recommend conducting a prior tax assessment before applying for the regime. We evaluate:
- The origin and nature of your income.
- The feasibility of meeting all requirements.
- The impact of the Beckham Law on your income tax return.
- Tax risks or incompatibilities based on your personal and professional situation.
Proper legal advice helps avoid mistakes, maximizes tax benefits, and ensures peace of mind during your stay in Spain.
Tell us about your case, and we’ll provide the best legal solution.
