Spain's Beckham Law: who qualifies and how to apply

Spain's Beckham Law: who qualifies and how to apply

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Taking a job in Spain raises one question very quickly: how much tax will you actually pay. For many incoming professionals, the answer comes down to one web special rule — the special expat tax regime, commonly called the Beckham Law.

The mechanism is simple: rather than paying progressive resident rates on everything you earn globally, you are treated as a non-resident for tax purposes on the income you earn in Spain, at a fixed rate of 24 percent on the first 600,000 euros and 47% above that. If your salary is significant, the difference is substantial.

The conditions are strict. In broad terms, you must have been non-resident in Spain for the previous five tax years, the move has to be tied to a job offer, a posting or a company directorship, and the work must be carried out mainly in Spain. The latest changes have widened the scope to remote workers and certain entrepreneurs.

Timing is the part people get wrong. You have to apply within six months of starting the activity that triggers residence. Miss it and you cannot recover it later. The benefit then runs for a total of six tax years.

It does not suit every case. Where a large part of your wealth sits abroad, the effect on wealth tax and on the 720 declaration should be calculated before deciding. Running the numbers in advance avoids an expensive mistake.

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