What is Beckham Law?
It is a special tax regime for inbound employees & digital nomads with contracts moving to Spain.
You will get lower tax rates on income generated in Spain.
Main benefits of the Beckham Law
✓ 24% flat rate: fixed 24% tax rate on total income, including employment and rentals, up to €600,000, with any amount exceeding this taxed at 47%
✓ Only income obtained in Spain is taxed: The Beckham Law primarily taxes income from within Spain, except for work-related earnings. Under the standard system, worldwide income is taxed in Spain
✓ Wealth tax is only taxed on assets located in Spain: Tax payment only on the net value of assets situated in Spain and not on the taxpayer's total global asset value
✓ There is no obligation to present Form 720: under Beckham Law, the taxpayer is treated as a non-resident for tax purposes, so you are not required to file the Form 720 for declaring assets abroad
Main requirements
✓ Residence: The person applying cannot have been a tax resident in Spain during the last 5 years
✓ Employment: The person moving to Spain has a work contract.
✓ Income: The applicant cannot engage in self-employed work, such as being a freelancer.
✓ Timing: meeting specific deadlines for this scheme is crucial, including the move to Spain, commencement of work, and application for the scheme