How to benefit from the so-called "Beckham" tax regime in Spain?

If you are considering moving to Spain for work, you could benefit from the "Beckham" tax regime, which offers a significant income tax reduction for expatriates. In 2023, nearly 10,000 people took advantage of this favorable regime, resulting in a loss of €134 million in revenue for Spain.

What is the Beckham Tax Regime in Spain?

The Beckham tax regime is a tax advantage in Spain for individuals who relocate to the country for professional reasons. This regime allows expatriates to benefit from a reduction in their income tax for a specified period.

Conditions for Benefiting from the Beckham Tax Regime

To be eligible for this advantageous tax regime, the following conditions must be met:

Conditions

Notes

Tax Residence

The individual must declare their tax residence in Spain.

Duration

The tax benefit is granted for a maximum of 6 years.

Prior Residence

The applicant must not have resided in Spain during the previous 5 years.

Employment Contract

The applicant must have signed an employment contract and be working in Spain.

New Features Introduced by the Startup Law

Startup Law No. 28/2022 of December 21st has broadened the scope of the "Beckham" tax regime. The new categories of beneficiaries now include:

  • Company directors with no limit on their shareholding.
  • Digital nomads, who work remotely from Spain.
  • Highly skilled employees, who bring specialized skills to the Spanish labor market.

What Are the Tax Benefits of the Beckham Regime?

The Beckham tax regime offers a capped tax rate of 24% on income up to €600,000. This reduced rate is particularly advantageous compared to the standard income tax in Spain, which can reach over 47%!

What Do I Need to Do to Benefit from the Beckham Tax Regime?

If you believe you are eligible for this tax regime for expatriates in Spain, here are the steps to follow:

  1. Submit Form 149: Within 6 months of your arrival in Spain, you must submit Form 149 to the tax authorities.
  2. Await the resolution: After submitting the form, wait for the tax authorities to send you their resolution confirming your eligibility for the regime.
  3. Communicate the resolution to your "gestor" (administrative manager) or your company's "gestor" so that it can be taken into account.

By following these steps, you can benefit from the tax advantages for expatriates and optimize your tax situation in Spain.

*Image creation : Julien Impératrice.