Beckham Law Spain

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Information about Beckham Law Spain

Experience: More than 7 Years with Beckham law.
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Specialised: Foreign clients to obtain their Beckham law
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Reviews for Beckham Law Spain

  • Fantastic professional service to get my Beckham Law Spain!💫 Lucia responded to my enquiry request immediately!!!! The team is super helpful, knowledgeable and a pleasure to deal with. Jackie | British Citizen | Beckham Law Spain in 2022

  • I turned to MSV for help with the Beckham Law Spainand they got back to me immediately. Amazing service from the start. They helped me at every stage and also after my consulate appointment.. Kevin | US Citizen | Beckham Law Spain in 2022

  • I am very happy with the service and support I received from MSV throughout my successful Beckham Law Spain application. I highly recommend it. Ian | British Citizen | Beckham Law Spain in 2022

  • Lucia has been a total professional, very knowledgable, totally responsive to any queries often answering well into the evening, considerate and understanding. Bryan | British Citizen | Beckham Law Spain in 2022

Spanish Tax System

The tax year in Spain operates from January 1st to December 31st. The Spanish tax returns must be filed and paid between the 2nd of May and the 30th of June. The period for declaring and paying PIT is established annually by a ministerial order. It usually ends on 30 June.

The Spanish tax system for individuals is officially composed of two personal income taxes. The first income tax category is the “PIT” or the Spanish Personal Income Tax Reform Bill (Proyecto de Ley de Reforma Fiscal de IRPF). Residents have until June 30th to declare and pay the Spanish PIT tax, which is set by a ministerial order.

The PIT is identified for individuals who reside in Spain for tax purposes. The second income tax category is the Spanish non-residents’ income tax (NRIT). The NRIT is for persons who do not reside in Spain for tax purposes, but who obtain income in Spain.

In other words, persons who receive income in Spain are responsible for paying the Spanish PIT or Spanish NRIT tax income. Residents in Spain also are required to pay global income tax under the PIT category under statutory progressive rates. However, non-residents are liable to pay NRIT only on their income sources in Spain.

The David Beckham Law

Beckham law Spain

Currently, if you are going to move to spain or you plan to work in spain, you can save taxes thanks to the great English soccer player David Beckham. The Royal Decree 687/2005 better known as The Beckham Law spain states that when you are taxed as a non-resident you will pay less taxes than if you were a resident. Legally in Spanish paperwork, the Beckham decree is “Régimen especial para de trabajadores desplazados.”

The Beckham tax mandate was so named because it coincided with David Beckham taking residence in Spain to work for Real Madrid. It is said that he was the first sports celebrity to benefit from this special tax. Foreign workers must first apply before they are accepted for the tax exemption.

When Mr. Beckham moved to Spain, it was his contention that any incomes obtained from any of his global image rights should not be subject to any Spanish income taxation laws. In 2005 the legal Beckham mandate was designed to stimulate the Spanish economy by granting Beckham and foreign entrepreneurs a special tax plan. The Beckham Law was not without its statutory ups and downs. However, it was reinstituted and is currently the new tax income law for well-to-do expats.

Benefits of the David Beckham Law

This tax exemption is recognized in the year of your arrival and applies to the following 5 tax years up until the 6th year. If there are any capital gains received from a Spanish territory, then that income will be taxed at 35%.

The Beckham statute regimen changed the previous tax law for expats in paying taxes. Today, a person with considerable wealth and who has moved from another country to Spain, the option to be taxed either as a Spanish resident or as a non-Spanish resident.

This means that individuals who opt to be taxed as a non-Spanish resident can declare their Spanish income and assets and may avoid tax on their global income up to 6 tax years having met with certain conditions.

Past Tax Laws

Prior to the Beckham law, foreign workers who stayed in the country more than 183 days in a tax year were deemed to be a “tax resident.” This meant that they were responsible for paying a resident income tax on their income in any other country outside of Spain and not just their income and assets from Spanish sources.

When individuals are identified as a tax resident in Spain, their income is subject to the Spanish Personal Income Tax or PIT. What this means, is that a PIT tax is progressively taxed at rates up to 48%. However, under the Beckham Law Spain, foreigners will be taxed as non-residents at a fixed rate of 25% on the income they earned in Spain instead of rising tax scale that ranges from 24% to 43%.

Requirements for the Beckham law?

There are exemptions under the Beckham Law prescript that are applicable during your initial arrival. It continues for a total of 6 years. What requirements must foreign nationals, that is, foreigners who come to work for a company located in Spain, satisfy to take advantage of this tax regime? The requirements include the following:

  • Foreign nationals have moved to Spain to work. All business responsibilities must be carried out in Spain. If any part of a business is doing business outside of the country, then the percentage of income earned from these activities may not exceed 15%.
  • Expats must have relocated to Spain to work under an employment contract. The contracted employer must be a Spanish business. Also, any non-resident company must operate through a permanent establishment in Spain, having acquired tax residence in Spain.
  • Foreigners must not have lived in Spain for the last 10 years.
  • You must have equity in no more than 25% of a company that you are a director of based in Spain.
  • The Beckham Law application must be made within 6 months of starting an employment contract.

Sports – The Beckham Law

How does the Beckham Law affect athletes like Mr. Beckham? Under this generoso decree, individuals who are professional sports players who plan on moving to Spain and who have an annual income of less than €600,000 are able to take advantage of these tax breaks.

The income will break down to athletes being taxed at 24% for the first €600,000 and any remainders taxed at 45%. Remember also that any foreign wealthy person who will be working and living in spain are addressed under the beckham law.

What Forms of Taxation Is Affected?

People from outside of Spain are exempt from paying the regular tax rate because of the following income types that are acquired outside the country of Spain:

  • Capital gains: Expats will be responsible for income tax on profits gained from the sale of assets and dividends located in Spain. However, under the Beckham law as a non-resident, you will not have to pay income tax in Spain on any profits from capital gains outside of Spain.
  • Dividends: The advantages under the Beckham ley for dividends from outside of the country is that they are not taxable. Dividends stemming from Spanish and non-resident subsidiaries are not taxable in Spain. Dividends from the ETVE to non-residents are not taxable in Spain if coming from income generated by the non-resident companies.

ETVE is any spanish company subject to Spanish Corporate Tax rules on its Spanish derived income, but is exempt from taxation on foreign-sourced dividends. Additionally, dividends distributed to foreign investors from Spain’s sociedades capital riesgo (SCR) are not taxable.

  • Rental income: The tax on rental income in Spain for Spanish residents is taxed at 19%. Individuals can also deduct any expenses to help maintain the upkeep of the property. In other words, you would not pay tax on any rental property income.

The change from these sources occurs if they were gained within the country of Spain. If this occurs, then the income tax rate will be affixed at 19%. Please be apprised that to apply as a tax resident in spain, you must live and work longer than 183 days in a spanish territory.

Like David Beckham, any wealth tax category for foreigners experiences a reduction in Spain’s tax rate. Wealth tax is assessed on the net value of your assets. These assets include stocks, savings interest, and properties. But, under the Beckham enactment, this type of asset tax only applies to assets that are or have been acquired in Spain.

The Beckham Law Application Process

To apply for the Beckham law or Special Expats’ Tax Regime (SETR), from the Spanish Régimen Especial para Trabajadores Desplazados, you must take the following steps:

  • First, you must submit a form identified as Form 030. You can download it from the internet.
  • Fill it out and submit it to the Spanish Tax Agency requesting your registration in the Spanish Census of Liable Taxpayers

When you receive your tax income approval for being added to the Spanish census, then you will be asked to submit another application known as form 149 under the Beckham Law spain. In addition, other types of specific documentations, depending on your local spanish territory will be requested. The common documents required include your passport, your NIE number, social security number, and a signed copy of your work contract.

After these processes you will be notified that you can apply the special tax regime. You will then receive a certificate that should be given to your employer in order that they may begin applying the Beckham prescript’s special withholding rate.

Beckham Law Update

The current special Beckham ley tax decree has an income tax rate at a flat 24%. However, in 2021, any income over €600,000 will be taxed at 47%.

34 thoughts on “Beckham Law Spain

  1. Nazan Palas |

    I have my own company in the Netherlands. I want to locate to Barcelona end of this summer. Can I apply for Beckham law? Does this mean that I must locate my company to Spain? Or can I better start a company in Spain? Can you please help me out?

    Reply
    1. Anna |

      Nazan,

      One of our lawyers will contact you to answer your questions about Beckham law in Spain.

      Regards,

      Reply
  2. Giorgia |

    Hi,
    My name is Giorgia I have an dual citizen ( Italian and British ), and I am moving from London to Madrid starting 1st of September for work.
    I am wondering If I can apply for this and how to do it ?
    Thanks,
    Giorgia

    Reply
    1. Anna |

      Giorgia,

      One of our lawyers will contact you to answer your questions about Beckham law in Spain.

      Regards,

      Reply
  3. Alfonso Bertamino |

    Hi,

    I would like to get support to apply for the Beckham law. Could you please reach out to me?

    Thanks a lot

    Regards,
    Alfonso Bertamino

    Reply
    1. Anna |

      Alfonso,

      One of our lawyers will contact you to answer your questions about beckham law in Spain.

      Regards,

      Reply
  4. Federico Budassi |

    I have just realized that I would like to apply for the Beckham Law. Could you support me in doing it? Formally I have started working in Spain on the 20th of September 2021, so I suppose I have no enough time to do it…
    THANKS

    Reply
    1. Anna |

      Federico,

      One of our lawyers will contact you to answer your questions about the beckham law in Spain.

      Regards,

      Reply
  5. Katarina |

    Hello, I have just found information about the Beckham law. I am working in Spain for 1 year now and would like to understand if I can still apply.
    Thank you

    Reply
    1. Anna |

      Katarina,

      One of our lawyers will contact you to answer your questions about the Beckham Law in Spain.

      Regards

      Reply
  6. Sean Davies |

    Please get in touch, interested to know if I am eligible for Beckham Law.

    Reply
    1. Anna |

      Sean,

      One of our lawyers will contact you to answer your questions about the beckham law in Spain

      Regards

      Reply
  7. Tomas |

    Hello,

    I am Czech national considering to move to Spain and applying for Beckham law. I would have some questions regarding tax treaty between Spain and Czech republic to make sure that Beckham law is applicable to me without risk of double taxation.

    Thank you
    Tomas

    Reply
    1. Anna |

      Tomas,

      One of our lawyers will contact you to answer your questions about the beckham law in Spain

      Regards

      Reply
  8. Liz Rosenblum |

    Can you tell me if Beckham’s law applies if I move to Spain while working for the same employer that I currently work for in the netherlands?

    Reply
    1. Anna |

      Liz,

      One of our lawyers will contact you to answer your questions about the beckham law in Spain.

      Regards

      Reply
  9. Martin O´Donnell |

    I was offered a contract to work in Spain as a Autonomo/Freelancer/Independent Contractor for a fixed term of 1 year. I arrived in October, started work and leased an apartment for 1 year. I recently gained my NIE card, does this mean I am a resident?I have not applied for residency as my permanent address is in UK. The company I work for are Spanish but I am NOT an employee, I am self-employed. This company have told me that as I am self employed I do NOT qualify to apply for the “Beckham Law”, is this correct?

    Reply
    1. Anna |

      Martin,

      One of our lawyers will contact you to explain all the process for obtain the Beckham Law Spain.

      Regards,

      Reply
      1. William |

        Hi Anna,
        I have a similar situation than Martin, could you one of your lawyer contact me as well?
        Thanks,
        William

        Reply
        1. Anna |

          William,

          One of our lawyers will contact you to answer your questions.

          Regards,

          Reply
  10. Shiva Saadat |

    I would like to discuss my tax situation if I moved to Spain to see how I could take advantage of Beckham’s law. Please contact me so we could set up initial consultation.

    Reply
    1. Anna |

      Shiva,

      One of our lawyers will contact you to explain all the process for the Beckham Law in Spain.

      Regards,

      Reply
  11. Renata |

    Hi, I have only found out about Beckham’s tax thing but my employment started July 2020. Is there any chance to get this?

    Reply
    1. Anna |

      Renata,

      One of our lawyers will contact you to explain all the process.

      Regards,

      Reply
  12. Tom |

    Hi, I have a question regarding the following requirement: Foreign nationals have moved to Spain to work. All business responsibilities must be carried out in Spain. If any part of a business is doing business outside of the country, then the percentage of income earned from these activities may not exceed 15%. Does that mean the manager who applies for this Beckham law must work 100 % on business that is conducted in Spain? Or can this manager be responsible for the Spanish office and in addition take a leadership role outside Spain, e.g. for a regional team?

    Reply
    1. Anna |

      Hi Stewart,

      One of our lawyers will contact you to explain all the process for Beckham Law.

      Regards,

      Reply
  13. Dirk Smeets |

    Good afternoon,

    I have been offered a position in Spain and believe I would fall in the category of the Beckham law since I am a foreigner. As taxation is different in each country I was wondering if besides the gross->net calculation, there is also an annual personal tax which has to be paid. In my country this is paid separately in around June and costs me a few thousand per year on top of my net salary. I just wanted to understand the full package on how it works in Spain.
    Thank you!

    Reply
    1. Anna |

      Hi Dirk,

      One of our lawyers will contact you to explain all the process for the beckham Law.

      Regards,

      Reply
  14. Cosmin |

    Hello,

    I filled the contact form but there was no indication that it was sent. I need your help with applying for Beckham Law.

    Reply
    1. Anna |

      Hello Cosmin,

      one of our lawyers will be in touch with you shortly to answer your questions about the beckham law.

      Regards

      Reply
  15. David |

    As a french developer doing freelancing and e-commerce can I use this law live in Spain and being tax free on overseas dividends from foreign companies ?

    Reply
    1. Anna |

      Hi David,

      one of our lawyers should be in contact with you shortly for your questions about Beckham Law in Spain.

      Greetings,

      Reply
  16. Jack |

    I am working for an American multinational company as a manager in Holland and they want to open sucursal in Spain , I was thinking if I could benefit from the beckham law, if a go to live to spain, could you help me?

    Reply
    1. Anna |

      Hi Jack,

      one of our lawyers should be in contact with you shortly for your questions for the Beckham law.

      Greetings

      Reply
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