What is the Beckham Law?
- Favorable tax regime applicable to foreigners who come to live in Spain.
- It was introduced by Royal Decree 687/2005 that amended the Personal Income Tax Law.
- Application of non-resident income tax during the first 6 tax periods.
- Fixed taxation of income obtained in Spain of 24% up to €600,000 and 47% from that amount.
- The objective is to attract qualified workers to the country.
- The name comes from the footballer David Beckham because he was the first to benefit from this law.
- The regime has been subject to relevant modifications with Law 28/2022, of December 22, for the promotion of the ecosystem of emerging companies.
Which are the requirements?
- Not having resided in Spain during the 5 years prior to moving to Spanish territory.
- The displacement to Spanish territory must occur as a consequence of:
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- An employment contract, except professional athletes (including employees who travel to Spain to work remotely).
- The acquisition of the status of administrator of an emerging company, except that the entity is classified as patrimonial and the administrator has equal to or greater than 25% of the participations.
- Carrying out in Spain an economic activity classified as entrepreneurial (understood as an innovative activity and/or with special economic interest for Spain + favorable report issued by the Empresa Nacional de Innovación S.A.).
- Carrying out an economic activity in Spain by a highly qualified professional who provides services to emerging companies or carries out training or R+D+i activities, receiving a remuneration that together represents more than 40% of business, professional and personal work incomes.
- Not obtaining income through a permanent establishment located in Spain, except in the cases of economic activity qualified as an entrepreneur or the performance of an economic activity by a highly qualified professional.
What possibility do relatives have of benefiting from the Beckham Law?
- Children of the taxpayer (under 25 years of age or disabled)
- Spouse or parent of the children in the absence of a marriage bond.
- During the same period as the one applicable to the taxpayer.
- Requirements:
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- That they move to Spain with the taxpayer or after his displacement and before the end of the first tax period in which the regime is applicable to the taxpayer.
- That they acquire their fiscal residence in Spain.
- That they have not resided in Spain during the 5 years prior to moving to Spanish territory.
- That they do not obtain income through a permanent establishment in Spanish territory, except in the cases of carrying out an economic activity classified as entrepreneurial or carried out by highly qualified professionals.
- That the sum of the taxable bases of the taxpayers in each of the tax periods in which the special regime is applied is less than the taxable base of the taxpayer they accompany.
How to take advantage of the Beckham Law?
- Petition to the Tax Agency using model 149.
- In a period of 6 months from the start date of the activity that is recorded in the registration with the SS.
How to renounce to the Beckham Law?
- Resignation has to be done during November and December for its application from January of the following year.
- Impossibility of benefiting again from this scheme once renouncing.
For any questions or queries, the Mañá Krier Elvira Law Firm puts at your disposal expert professionals in the field.
