Who is eligible for the Beckham Law in Spain?

Foreign workers who have not been tax residents in Spain for the past 5 years and are relocating for an employment contract may be eligible.

What is the flat tax rate under the Beckham Law?

Under the Beckham Law, eligible expats pay a flat income tax rate of 24% on Spanish-sourced income up to €600,000, rather than the progressive tax rates.

What is the Beckham Law and how does it work?

Q: Is my foreign income exempt from Spanish taxation under the Beckham Law?

Under the Beckham Law, foreign rental income, foreign dividends, and capital gains from assets held outside of Spain are not taxed by the Spanish government

Q: Does the Beckham Law protect me from the Wealth Tax?

Under the Beckham Law, you only pay wealth tax on assets physically located in Spain. Your global portfolio is completely safe from Spain's standard worldwide wealth tax.

The Beckham Law, officially known as the Special Tax Regime for Displaced Workers (in Spanish: Régimen Especial de Trabajadores Desplazados a Territorio Español), is considered the most powerful tax planning tool for foreign workers moving to Spain.

How It Works and Key Benefits

The core mechanism of the Beckham Law is that it allows qualifying individuals to be taxed as non-residents for the year of their arrival plus the five subsequent years, offering a total of six years of significant tax advantages.

Flat Tax Rate on Spanish Income: Instead of Spain's high progressive tax brackets, your Spanish-sourced employment income is taxed at a flat rate of 24% up to €600,000, with a 47% rate applying to any excess.
Total Exemption on Foreign Income: Crucially, income generated outside of Spain—such as U.S. dividends, interest, capital gains, and rental income—is completely exempt from Spanish taxation.
Wealth and Solidarity Tax Shield: Any assets you hold outside of Spain are entirely exempt from the Spanish Wealth Tax and the national Solidarity Tax.

Eligibility and Application Requirements

To take advantage of this regime, you must meet a few specific criteria:

Prior Non-Residency: You must not have been a tax resident in Spain for the 5 tax years immediately prior to moving there (this requirement was recently reduced from 10 years).
Application Window: You must officially apply by filing Form 149 within 6 months of arriving in Spain or registering with Spanish Social Security.
Digital Nomads: Recent reforms expanded eligibility to remote workers and digital nomads, provided they hold an employment contract with a foreign company. However, self-employed freelancers (autónomos) face much stricter hurdles and typically must prove their activities are "entrepreneurial" to qualify.

Important Caveats While the Beckham Law shields your foreign assets and income, a recent ruling by the Tribunal Económico-Administrativo Central (TEAC) creates a new complication for property owners: individuals under the Beckham Law are now liable for Non-Resident Income Tax (IRNR) on their own main residence in Spain as "imputed income”, even if it is their primary residence. The rate is calculated as a percentage of the property's cadastral value (valor catastral). It is 1.1% if the cadastral value was updated within the last 10 years; otherwise, it is 2%.

Here are the key questions expats are asking about the Régimen Especial de Trabajadores Desplazados a Territorio Español in 2026:

1. Who is actually eligible in 2026?

The eligibility rules have expanded in recent years. You now qualify if you have not been a Spanish tax resident in the past 5 years (reduced from 10). You must be relocating to Spain for work — this includes having a standard employment contract with a Spanish company, an intra-company transfer, or being a remote worker holding a Digital Nomad Visa. (Note: Professional athletes are no longer eligible, despite the law's namesake).

2. What exactly is the tax rate?

Instead of falling under Spain's standard progressive tax rates (which can reach up to 47% depending on the region), qualifying expats pay a flat 24% on their Spanish-sourced employment income up to €600,000. Anything above that threshold is taxed at 47%. This flat rate lasts for the year you arrive plus the following five tax years (six years total).

3. What happens to my foreign income?

This is the biggest draw for high-net-worth expats. Under the Beckham Law, foreign-sourced income is generally exempt from Spanish taxation. This means your foreign rental income, foreign dividends, and capital gains from assets held outside of Spain are not taxed by the Spanish government.

4. Does it protect me from the Wealth Tax?

Yes. Under this regime, you are treated as a non-resident for Wealth Tax purposes. You only pay wealth tax on assets physically located in Spain. Your global portfolio is completely safe from Spain's standard worldwide wealth tax. You are also entirely exempt from filing Modelo 720 (Spain's strict and often heavily penalized foreign asset reporting form).

5. What is the application deadline?

You must submit your application (Modelo 149) within 6 months of registering with Spanish Social Security or starting work. This deadline is incredibly strict — miss it by a single day, and you are permanently disqualified from the regime.

Read also “Investing for US Citizens in Spain - Cross-Border Wealth Management and Investment Strategy” or ask our research assistant here

Last modified on Jun 30, 2026