Foreign professionals moving to Spain could be eligible for a flat 24% income tax rate for up to six years – thanks to the Beckham Law.

The special tax regime was launched in 2005, and allows certain expats to be taxed as non-residents while living and working in Spain.

It’s named after footballer David Beckham, who became one of the first high-profile beneficiaries after joining Real Madrid.

So what’s the Beckham Law and why does it matter?

The Beckham Law (Royal Decree 687/2005) was created to attract foreign talent to Spain by offering a reduced and simplified income tax rate.

It applies to employees, remote workers, entrepreneurs, investors, athletes, and other qualified professionals who relocate to Spain. Recent updates to the law have removed the eligibility for most professional athletes – while extending the eligibility pathways for remote workers.

Here are the four main benefits:

• A fixed 24% tax rate on Spanish-source income up to €600,000
• A fixed 47% rate on any Spanish-source income above €600,000
• No tax at all on foreign-source income—including overseas capital gains, dividends, or rental properties (note: employment income from abroad may still be partially taxed, depending on double taxation treaties)
• A six-year duration, covering the year of arrival and five subsequent tax years
• Spouse and children under 25 may also benefit, as long as they generate income in Spain

This compares favourably with Spain’s progressive income tax system for residents, where tax rates rise with income:

1. Up to €12,450 – 19%
2. €12,450 to €20,200 – 24%
3. €20,200 to €35,200 – 30%
4. €35,200 to €60,000 – 37%
5. €60,000 to €300,000 – 45%
6. Above €300,000 – 47% (and even 54% in some regions, like Valencia)

Let’s take an example of someone earning €80,000 in taxable income (i.e. net profit before tax).

Under the standard tax system, your total bill (before deductions) would be around €26,901.50. But under the Beckham Law’s flat 24% rate, you’d pay just €19,200 – a saving of €7,701.50.

At higher income levels, the difference grows significantly.

On €500,000 of taxable income, a resident might pay around €219,901.50. But under the Beckham regime, you’d owe only €120,000 – saving almost €100,000.

These tax savings apply only to income earned in Spain. Foreign-sourced income is excluded from Spanish taxation under the regime.

The 5 eligibility pathways

To qualify, your situation must match one of five eligibility pathways:

1. You’re posted or hired by a company in Spain – either through local recruitment or an international transfer.
2. You’re a remote worker who moves to Spain and continues working for a foreign employer (the 2023 Startup Law expanded eligibility to digital nomads).
3. You offer services to Spanish start-ups or R&D activities, and at least 40% of your income comes from those engagements.
4. You become a company administrator in Spain and don’t own more than 25% of a business classified as asset-managing. If the business isn’t asset-managing, you may hold a larger share.
5. You’re a family member (spouse or child under 25) of a main applicant – which means your income can also benefit from the fixed tax rate.

In addition to one of the above, you must meet four more requirements:

1. You must not have been a Spanish tax resident in the last 5 years.
2. Your main income must come from work performed in Spain. It doesn’t matter if the employer is Spanish or foreign.
3. If you’re employed by a Spanish company, you can’t have an existing employment relationship with them. The move must represent a new or separate engagement.
4. You must apply within 6 months of registering with Spanish Social Security or from your official move date – whichever is earlier.

If any of these criteria aren’t met, your application may be rejected.

Once the six-year period ends, if you remain a tax resident in Spain, you’ll be transferred to the standard resident tax regime.

That means your worldwide income becomes taxable in Spain, and your income generated in Spain is subject to progressive tax bands. You may however qualify for certain deductions (e.g., for dependents, disabilities, or housing expenses) which are unavailable under the Beckham regime

Important note: Even under the Beckham Law, capital gains and investment income from Spanish sources (such as Spanish property sales or dividends from Spanish companies) are taxed at standard rates ranging from 19% to 28%.

So while it’s a generous scheme, it’s not a free-for-all.

You should also consider the opportunity cost of missing out on resident deductions while in the Beckham scheme.

How to apply for the Beckham Law

Applications are made via Spain’s Tax Agency (Agencia Tributaria / AEAT). You must submit your application within 6 months of the start of your work activity or your registration with Spanish Social Security.

You can start the process online here: AEAT Beckham Law Application

You’ll need to prepare the following documents:

• A signed employment contract showing you’ve been hired or transferred to Spain
• Proof of registration with Spanish Social Security (“Alta”)
• A current employment verification letter
• A certificate of previous tax residency (to prove you were not a tax resident in Spain during the past 5 years)
• Your NIE number (Número de Identidad de Extranjero)

This is a powerful but complex tax regime—so it’s worth consulting with a tax advisor who specialises in international or expat taxation.

They can help confirm your eligibility, estimate your potential savings, and make sure your application is accurate and timely.