The Beckham Law (Régimen de Impatriados): Spain's Tax Incentive for Relocated Executives

The Régimen Especial de Tributación para Trabajadores Desplazados a Territorio Español (popularly known as the Beckham Law, after David Beckham's use of it when he joined Real Madrid in 2003) is a special personal income tax regime for individuals who move to Spain for work-related reasons after not having been resident in Spain for the previous five tax years.

Under the regime, the individual is taxed as a non-resident for Spanish tax purposes — even though they physically live in Spain. This has two main practical effects:

• Flat rate: Instead of progressive IRPF rates (ranging from 19% to 47%), the individual pays a flat rate of 24% on income up to €600,000. Income above €600,000 is taxed at 47% — the same as the top standard IRPF rate, but the €600,000 threshold is far above where standard IRPF hits that rate.
• Territorial scope: As a deemed non-resident, the individual is generally only taxed on Spanish-source income. Foreign-source income (foreign dividends, foreign interest, foreign capital gains, foreign rental income) is generally not taxed in Spain under the Beckham Law. However, employment income from Spanish employment, and Spanish-source dividends and capital gains, are fully taxable.

The application for the Beckham Law regime is made via Modelo 149, filed with the AEAT. The critical deadline is within six months of the date of registration in the Spanish Social Security system (or the date you began providing services in Spain, for the self-employed and digital nomads). Missing this six-month window means you cannot apply for the Beckham Law for that tax year — there is no extension and no retroactive application.

What Documentation You Will Need

• Copy of your employment contract or service agreement establishing the reason for your move to Spain
• Proof that you have not been a Spanish tax resident in the five preceding tax years (typically: tax residency certificates from your prior country, or evidence of filing as a non-resident in Spain)
• NIE (Spanish tax identification number)
• For digital nomads under the 2023 Startup Law: proof that at least 80% of your work is for non-Spanish clients, and relevant client/company documentation
• For startups: ENISA certification of the startup's qualifying status

Tax Filing Under the Beckham Law

While under the Beckham Law, you file an annual IRNR (Non-Resident Income Tax) return — specifically the Modelo 151 — rather than the standard IRPF Modelo 100. The Modelo 151 captures your Spanish-source income and applies the 24% / 47% rates. Foreign income is generally excluded from the Spanish return (with limited exceptions).

Renouncing the Regime

You can voluntarily opt out of the Beckham Law during the application period in any year. However, once you opt out, you cannot re-enter the regime. The regime also terminates automatically if you cease to be employed in Spain, if your employer's activity in Spain ends, or if you lose Spanish residency.

Income That IS Subject to Spanish Tax Under the Beckham Law

• Employment income from your Spanish employer or Spanish-source work
• Income from economic activities performed in Spain (self-employment, freelance)
• Capital gains on Spanish assets (Spanish real estate, Spanish securities)
• Rental income from Spanish property — this IS taxed in Spain even under the Beckham Law
• Interest and dividends from Spanish sources

Income That Is EXCLUDED From Spanish Tax Under the Beckham Law

• Foreign employment income (from work performed outside Spain for non-Spanish employers)
• Foreign dividends and interest (from non-Spanish companies and accounts)
• Foreign capital gains (on non-Spanish assets)
• Foreign rental income (from properties outside Spain)
• No Model 720 obligation — as a deemed non-resident, you are NOT required to file the Model 720 foreign assets declaration during your Beckham Law period