What is the Beckham Law about and how does it affect me if I want to move to Spain?

When, at the age of 28, English footballer David Beckham signed for Real Madrid, he probably didn’t imagine that his name would become associated not only with football, but also with a particularly attractive tax regime for foreigners looking to establish themselves in Spain.

In 2004, the Spanish law regulating the Personal Income Tax (IRPF) was promulgated. This law, among other aspects, established a tax benefit that allows foreigners to pay a lower amount of taxes, while declaring them exempt from reporting gains generated in other countries.

This measure not only aims to encourage foreign investment but also seeks to attract specialized talent.

Since the British player was one of the first personalities to benefit from this regime, it became popularly known as the “Beckham Law.”

But how does this regulation affect those of us who are not elite athletes, nor signed for one of the most famous football clubs in the world?

Let’s start by explaining that the main aspects of this law are as follows:

  • A fixed tax rate of 24% applies for incomes up to 600,000 euros, and 47% for amounts exceeding this threshold.
  • Gains obtained abroad, such as stocks, financial investments, properties, and bank accounts, are not subject to taxes in Spain.
  • Individuals under this law must pay taxes on their wealth and large fortunes, considering only assets located in Spain, regardless of the assets they own abroad.

The regulation is available to any foreigner who moves to Spain and resides in the country for more than 183 days, provided they have not been a tax resident in Spanish territory for the last 5 years. Additionally, the main reason for the relocation must be the signing of an employment contract with an employer in the country.

What if you’re interested in a Digital Nomad visa? That is, being able to reside in Spain while maintaining a work relationship with your company (located in another country).

Well, in this case, the Beckham Law also applies: you’ll have the option not to be taxed in the Iberian country for 5 years. This is with the exception of the income you must demonstrate to obtain the visa, which must be higher than 2 Spanish minimum wages (€2,100 per month, at the moment). From those incomes, you’ll have to pay taxes at a rate of 24%.

If you’re interested in the possibility of moving to Spain, either temporarily or permanently, or you want to diversify your assets by investing in this country, get in touch with us. The AIM Global team will advise you throughout the process and accompany you until the last procedure is completed. Our goal is to help you fulfill your international mobility projects for you and your family.

Comparar listados

Comparar