The Beckham Law is a special Spanish tax regime, formally established under Article 93 of the Personal Income Tax Act (Ley 35/2006), that lets qualifying expats pay a flat 24% rate on Spanish employment income up to €600,000 — instead of progressive rates reaching 47%. It applies for the year of arrival plus five additional years (six years total). To qualify, you must not have been a Spanish tax resident in the previous five years, your move must be linked to qualifying employment, and you must file the application within six months of your Spanish social security registration. Self-employed autónomos are generally excluded, with one notable exception for Digital Nomad Visa holders introduced in 2023.
What is the Beckham Law and what does it actually do?
The "Beckham Law" is the informal name for Spain's Régimen Especial para Trabajadores Desplazados a Territorio Español — the special tax regime for inbound workers. It's not a law in its own right but a chapter of the Spanish Personal Income Tax Act (Ley 35/2006), specifically Article 93, supported operationally by Royal Decree 687/2005 and updated significantly by the Startup Law (Ley 28/2022) at the end of 2022.
The name comes from David Beckham, the English footballer who became one of the first high-profile beneficiaries when he joined Real Madrid in 2003. Athletes have since been excluded from the regime — but the nickname stuck.
The regime exists to make Spain competitive for international talent. Without it, anyone moving to Spain for work would face the standard Spanish tax framework: worldwide income taxed at progressive rates that climb to around 47% at the top bracket, plus reporting obligations on global assets. For high earners — founders, executives, senior professionals, HNWI — that combination is often a deal-breaker.
The 24% flat rate
Under the regime, your Spanish-sourced employment income is taxed at a flat 24% up to €600,000, regardless of the total amount. Income above that threshold is taxed at 47% — the top marginal Spanish rate. There is no progressive ladder up to €600k, no regional surcharges, no deductions to chase. It's a single rate on a clean base.
For someone earning €200,000 in Spain as an employee, that means an effective tax of roughly €48,000 instead of the ~€87,000 they would pay under the standard regime. The saving compounds over six years.
The €600,000 cap
The €600,000 ceiling is the most misunderstood part of the regime. It does not mean "you can earn up to €600k". It means the 24% rate applies up to €600k. Earn €800,000 and the first €600k is taxed at 24%, the remaining €200k at 47%. Earn €500,000 and the entire amount stays at 24%.
This matters in practice because senior founders and executives often hit the cap. Planning the salary structure, equity events, and timing of one-off payments around the threshold is a non-trivial decision — and one the standard articles online rarely address.
Six years of duration
The regime applies for the year of your arrival in Spain plus the five following calendar years. So if you arrive in March 2026, you can use Beckham for tax years 2026, 2027, 2028, 2029, 2030, and 2031 — six years total. From 2032 onward you return to the standard Spanish tax framework.
There is no renewal or extension. This is a hard ceiling. Planning what happens at the end of year six — pending equity vesting, deferred compensation, asset disposals — is part of the strategic exercise, not an afterthought.
What is and isn't covered
The flat 24% rate applies specifically to Spanish employment income — your salary from a Spanish employer, or from a foreign employer if you hold a Digital Nomad Visa under the 2023 reforms. It does not apply to:
- Capital gains realized in Spain (taxed at 19–28% under the savings income brackets)
- Foreign-source income (generally not taxable in Spain during the regime)
- Dividends from your foreign company (taxed separately as savings income)
- Interest, rental income, or other non-employment categories
There is one significant exception in the reporting obligations: Beckham Law filers are exempt from Modelo 720, the foreign asset reporting form that catches many standard Spanish residents off guard. Foreign assets — bank accounts, securities, real estate, crypto in some configurations — don't need to be declared during the regime.
Comparison: Beckham vs. standard Spanish tax
| Gross income | Standard IRPF | Beckham Law | Annual saving | |
|---|---|---|---|---|
| €80,000, ~€23,800, ~€19,200, ~€4,600 | €150,000, ~€55,700, ~€36,000, ~€19,700 | €300,000, ~€127,400, ~€72,000, ~€55,400 | €500,000, ~€221,400, ~€120,000, ~€101,400 | €700,000, ~€315,400, ~€191,000, ~€124,400 |
Standard IRPF figures use combined state + average regional rates for 2026. Regional variation is material — Madrid is generally the lowest, Catalonia higher. Beckham figures use the 24% flat rate up to €600k and 47% above.
The pattern is clear: the saving grows almost linearly until the €600k cap, after which it begins to plateau as the top portion gets taxed at the standard 47%. For a €300,000 earner over six years, that is roughly €332,000 in lifetime savings — enough to justify careful planning even when applying for the regime carries a real cost in advisor fees and sequencing discipline.