What is the Beckham Law and what is it for?
The Beckham Law is a Spanish tax regulation approved in June 2005. Its main purpose is to establish a special tax regime for foreign workers who move to the country to carry out their work. This regime allows these workers to pay a lower tax rate than regular residents. Its curious name derives from the famous footballer David Beckham, who benefited from this law when he was a player at Real Madrid.
With the aim of attracting foreign talent to Spain, this law encourages labor mobility and foreign investment in the country. Thanks to this implementation, workers can only be taxed on income generated in Spain rather than on global income.
At Eres Relocation, we also provide tax advisory services so that you can have a deep understanding of the regulations in an international assignment. We can inform you about whether this law is suitable for your profile.
Requirements to apply the Beckham Law
Wondering what the requirements are to qualify for the tax benefits under the Beckham Law?
Here are the main criteria you need to meet:
- Tax residency: The worker cannot have been a tax resident in Spain for the 10 years prior to their application.
- Temporary restrictions: Once six years have passed since applying under this law, beneficiaries will be required to pay taxes under the general tax regime.
- New job in Spain: The applicant must have a new job in Spain supported by a Spanish company, and if necessary, a visa. This new job must be the main reason for their transfer to the country.
- Incomes generated in Spain: The incomes subject to taxation must be generated in Spain, meaning the individual will only pay taxes on incomes earned within Spanish territory.
Who can apply for this law?
It’s important to keep in mind that not everyone can apply for this law, which is especially aimed at:
- Workers who have just moved to Spain
- High income expatriates
- Executives coming to work for a company
On the other hand, the following people would not be able to apply:
- Self-employed workers
- Professional athletes
- Directors of business entities
How to apply for it?
To apply for this law, you must follow these steps:
- You must download form 030 and submit it to the Spanish tax authorities
- Once you receive approval, you must send the application form 149
- You must attach your passport, NIE, work contract and Social Security affiliation number to the form
- Within 10 days you will know whether your application has been accepted or not.
At eres, we care about providing all the necessary information and keeping companies and workers updated. You can check our tax consulting and advisory services to learn about all the advantages of worker mobility to a new country. We will also make sure that all procedures in this process are carried out correctly. And above all, remember that if you have any questions, we are at your service