What is the Beckham Law?

The Beckham Law is only applicable to persons considered tax residents in Spain. A person is considered a tax resident in Spain if he/she is in Spain for more than 183 days in a calendar year.

Therefore, individuals who acquire their tax residence in Spain (more than 183 days in a natural year) as a consequence of moving to the Spanish territory, can opt to be taxed according to the Non-Resident Income Tax (fixed rate 24%), maintaining their condition as Spanish Income Tax payer, for the tax period in which they change their residence and become Spanish tax resident and during the 5 following tax periods, provided the individual moving to Spain complies with certain conditions. 

Benefits

  • Only worldwide employment income is subject to taxation in Spain.
  • No requirement to submit the form informing of assets held abroad.
  • Regarding the Net Wealth Tax when applying the Special tax regime, the individuals would only be subject to the assets held in Spain.
  • Gave read use way make spot how nor. In daughter goodness an likewise oh consider at procured wandered. Songs words wrong by me hills heard timed.

Please bear in mind that as of 2023 there has been an amendment to the Wealth Tax Law, to consider shares held in companies representing equity in any type of entity (non- resident entities), not traded on organised markets, which at least 50% of whose assets consist, directly or indirectly, of real estate located in Spain, as being located in the Spanish territory. Therefore, such shares would be understood to be assets within the Spanish territory and be subject to the Wealth Tax.

The employment income is tax in Spain at a fix rate of 24%. Other income from foreign source would not be taxed in the Spanish territory.

In addition, under the special tax regime when an individual owns real estate in Spain for its private use (habitual residence) or when it is not rented (empty), there is an attributed income to be taxed which depends on the cadastral value of the real estate applying a 1,1% or 2% to determine the taxable base.