Beckham Law in Spain: The Flat Tax Regime That Saves New Residents Thousands

What Is the Beckham Law?

The Beckham Law is the informal name for a special tax regime in Spain that allows new tax residents to pay a flat 24% income tax rate on their Spanish-source income instead of the standard progressive rates that reach up to 47%. Officially known as the "special regime for inbound workers" or "Regimen especial de trabajadores desplazados," it is codified in Article 93 of Ley 35/2006 (the Spanish Personal Income Tax Act, IRPF) and regulated by Royal Decree 687/2005 and subsequent amendments.

The nickname comes from David Beckham, who was one of the most prominent beneficiaries when he moved to Real Madrid in 2003. At the time, the regime applied to sportspersons as well, allowing Beckham to pay a substantially lower tax rate than the standard Spanish rates. The regime was introduced to attract foreign talent to Spain, and despite significant reforms over the years — including excluding sportspersons since 2015 — it remains one of Europe's most attractive tax incentives for relocating professionals.

For anyone moving to Spain for work — whether as an employee, a company director, a self-employed professional, or a digital nomad — the Beckham Law is potentially the single most important tax planning tool available. The savings can be enormous: a professional earning €100,000 per year can save approximately €12,000-€15,000 annually in income tax compared to the standard IRPF regime. Over the full six-year duration, that adds up to €70,000-€90,000 in tax savings.

This guide explains everything you need to know: who qualifies, who does not, how to apply, real calculation examples at different income levels, the interaction with digital nomad visas, comparison with similar regimes in other countries, and the situations where the Beckham Law is actually not beneficial.

The Legal Framework: Article 93 of Ley 35/2006

Understanding the legal foundation matters because the Beckham Law is not a separate law — it is a specific provision within the Spanish personal income tax legislation. Article 93 of Ley 35/2006 establishes that individuals who become Spanish tax residents due to their move to Spain can opt to be taxed under the Non-Resident Income Tax rules (Impuesto sobre la Renta de No Residentes, or IRNR) for a limited period, while technically being tax residents.

This is the key concept: you are treated as a tax resident of Spain for the purposes of tax treaties and residency obligations, but you are taxed as if you were a non-resident. This hybrid status creates several powerful advantages and a few notable limitations that we will explore in detail.

The regime has been amended several times since its introduction in 2004. The most significant changes came in 2010 (capping the flat rate benefit at €600,000 of income), 2015 (excluding sportspersons and expanding eligibility to company directors and entrepreneurs), and 2023 (extending eligibility to remote workers and digital nomad visa holders under Ley 28/2022, the Startups Act). Each reform has shaped the current version of the regime that applies from 2024 onwards.

Tax Rate: The 24% Flat Rate Explained

The headline benefit is straightforward: instead of Spain's progressive IRPF rates, you pay a flat 24% on your Spanish-source employment and professional income up to €600,000 per year. Income above €600,000 is taxed at 47%. For the vast majority of beneficiaries, all their income falls within the 24% bracket.

To understand how significant this is, compare it with the standard IRPF rates for 2025-2026:

Notice something important: for very low incomes — roughly below €17,000-€18,000 — the standard IRPF rate is actually lower than 24%, especially once personal allowances and deductions are factored in. This is one of the situations where the Beckham Law is not advantageous, which we will discuss later.

Capital gains and investment income are taxed differently under both regimes. Under the Beckham Law, Spanish-source capital gains are taxed at 19% for the first €6,000, 21% for €6,001-€50,000, 23% for €50,001-€200,000, 27% for €200,001-€300,000, and 28% above €300,000 — the same rates as under the standard regime. The advantage is that foreign-source capital gains and investment income are simply not taxed in Spain at all.

Duration: Six Tax Years

The Beckham Law applies for the tax year in which you become a Spanish tax resident plus the following five tax years — a total of six fiscal years. Spanish tax years align with calendar years (January to December).

Timing your move strategically can make a significant difference. If you move to Spain in January 2026, your Beckham Law period runs from 2026 through 2031 — six full calendar years. If you move in November 2026, the first year (2026) covers only two months, but you still use up one of your six years. The regime runs from 2026 through 2031 regardless, but your first year captures only a fraction of its potential benefit.

The optimal strategy is clear: if you can choose your move date, aim for early in the calendar year. Moving in January or February maximises the total time under the regime. Moving in November or December wastes almost an entire year of the six-year entitlement.

At the end of the six-year period, you transition automatically to the standard IRPF regime. There is no extension, no renewal, and no way to reapply. Once your six years are up, you are taxed like any other Spanish tax resident. This transition needs planning — particularly if your income is high, because the jump from 24% to 37-47% effective rates is substantial.

Who Qualifies for the Beckham Law

Eligibility has four core requirements, all of which must be met simultaneously:

1. You have not been a Spanish tax resident in the previous five tax years. If you lived in Spain (spending more than 183 days per year or having your centre of economic interests in Spain) in any of the five tax years prior to your move, you do not qualify. This rule exists to prevent existing residents from "leaving and returning" to access the regime.

2. Your move to Spain is caused by one of the following qualifying circumstances:

• An employment contract with a Spanish company or the Spanish branch of a foreign company (the most common route)
• Appointment as a director of a Spanish company, provided you do not hold a 25% or greater stake in the company (added in the 2015 reform)
• Carrying out an entrepreneurial activity in Spain as defined by the Startups Act (Ley 28/2022) — this includes innovative business activities approved by ENISA
• Carrying out a professional activity (self-employment) for a Spanish company or companies, provided this represents the majority of your income (added in the 2023 reform)
• Remote work for a foreign employer carried out from Spain — the "digital nomad" provision added by the Startups Act

3. You do not earn income that would be classified as earned through a permanent establishment in Spain. This technical requirement essentially means you need to be earning income as an employee, director, or independent professional — not through a business structure that would constitute a permanent establishment.

4. The employment income must not be exempt from IRNR. This condition rarely creates problems in practice but technically means that if your income were somehow exempt under the non-resident tax rules, you cannot use the Beckham Law for that income.

The Digital Nomad Expansion (2023 Onwards)

The 2023 expansion through the Startups Act was transformative. Before this change, the Beckham Law was essentially limited to people with a Spanish employment contract. The expansion opened the door to three new categories: remote workers employed by foreign companies, freelancers working for Spanish clients, and entrepreneurs launching qualifying startups. For the growing population of location-independent professionals, this turned Spain from a tax-hostile destination into one of Europe's most attractive options.

Who Does NOT Qualify

Professional sportspersons. Since the 2015 reform (Real Decreto-ley 3/2014, effective from January 2015), professional athletes and sportspersons are explicitly excluded from the Beckham Law. This was a politically motivated change — public anger over football players paying a fraction of the tax rate paid by ordinary workers drove the reform. The irony is that the law still carries Beckham's name despite the fact that someone in his position could no longer benefit from it.

Anyone who has been a Spanish tax resident in the prior five years. No exceptions. Even one year of tax residency in the five years before your intended move disqualifies you.

Self-employed professionals whose majority income does not come from Spanish sources. If you are freelancing primarily for clients outside Spain and choose to live in Spain, the rules are nuanced. The Startups Act provisions require that the work is carried out "for" a Spanish company or that you are working remotely for a foreign employer with authorisation. Pure freelancers working for a mix of global clients may face challenges qualifying unless they can structure their work to meet the requirements.

Company directors with 25% or more ownership. If you own a quarter or more of the company whose board you sit on, you are excluded. This prevents owner-managers from simply appointing themselves as directors to access the regime.

How to Apply: The Modelo 149 Process

Application is made using Modelo 149 (Comunicacion de la opcion, renuncia o exclusion del regimen especial). You must file this with the Agencia Tributaria (Spanish Tax Agency, AEAT) within six months of the date you are registered with Spanish Social Security or start your work activity in Spain — whichever comes first.

This deadline is strict. If you miss the six-month window, you lose the right to apply for the Beckham Law entirely for this move to Spain. There is no appeal, no extension, and no second chance. This is the single most common mistake people make, and it is irreversible.

Step-by-Step Application Timeline

1. Before moving: Confirm you have not been a Spanish tax resident in the previous five tax years. Gather documentation proving your prior tax residency in another country (tax returns, residency certificates, employment records).
2. Arrive in Spain and obtain your NIE (Numero de Identidad de Extranjero). This is your foreign identification number, required for all tax and administrative matters. You can apply for a NIE at the Spanish consulate in your home country before moving or at the Oficina de Extranjeria in Spain.
3. Register with Social Security or begin your qualifying work activity. The six-month clock starts ticking from this date.
4. Prepare Modelo 149. The form requires your personal data, NIE, details of your employment or professional activity, and a declaration that you meet the eligibility requirements. Supporting documents include your employment contract, Social Security registration, and proof of non-residency in Spain during the prior five years.
5. File Modelo 149 with AEAT. This can be done electronically with a digital certificate or in person at an AEAT office. Electronic filing requires either a certificado digital or a Cl@ve PIN.
6. Receive confirmation. AEAT will review your application and issue a resolution — typically within one to two months. If approved, you are registered under the special regime from the tax year of your arrival.
7. File annual tax return using Modelo 151 (instead of the standard Modelo 100 used for regular IRPF). This is important: Beckham Law beneficiaries file a different tax return than standard residents.

The process is straightforward but detail-sensitive. A tax advisor familiar with the regime (gestor fiscal or asesor fiscal) typically charges €300-€800 for handling the complete Modelo 149 application. Given the stakes — potentially €70,000+ in total tax savings over six years — this is not an area where you want to economise on professional help.

Benefits Beyond the Flat Rate

The 24% flat rate is the headline, but several other benefits make the Beckham Law regime even more attractive:

Only Spanish-source income is taxed. Under the standard IRPF regime, Spanish tax residents are taxed on their worldwide income — every euro earned anywhere in the world. Under the Beckham Law, only income sourced in Spain is subject to Spanish tax. Foreign rental income, foreign dividends, foreign interest, and foreign capital gains are all exempt from Spanish taxation (with one exception discussed below). For anyone with international investments, property abroad, or passive income from foreign sources, this exemption alone can save thousands.

Exception: foreign employment income. If you earn employment income from a foreign employer for work performed outside Spain, that income IS taxable in Spain under the Beckham Law, but at the flat 24% rate. This exception prevents people from artificially splitting their employment between Spanish and foreign contracts to avoid tax entirely.

No wealth tax obligation. Beckham Law beneficiaries are treated as non-residents for wealth tax purposes. Spain's Impuesto sobre el Patrimonio (wealth tax) applies progressive rates of 0.2% to 3.5% on net assets above approximately €700,000 (threshold varies by autonomous community). Under the Beckham Law, only Spanish-located assets are subject to wealth tax, and the threshold applies only to those Spanish assets. Foreign assets — bank accounts, investments, property abroad — are completely excluded.

No Modelo 720 obligation. Spanish tax residents must file Modelo 720 (Declaracion informativa sobre bienes y derechos en el extranjero) declaring all foreign assets worth more than €50,000 in any of three categories: bank accounts, securities, and real estate. The penalties for non-compliance have been reduced following a 2022 EU Court of Justice ruling, but the reporting obligation remains burdensome. Beckham Law beneficiaries, treated as non-residents for these purposes, are exempt from Modelo 720 entirely.

No Modelo 721 obligation. Similarly, the newer Modelo 721 (for cryptocurrency assets abroad) does not apply to Beckham Law beneficiaries.

Simplified tax return. Filing Modelo 151 instead of Modelo 100 is generally simpler, with fewer schedules and less complexity around foreign income reporting.

Drawbacks and Limitations

The Beckham Law is not without disadvantages, and for some people, these make it the wrong choice:

No personal deductions or allowances. Under the standard IRPF regime, taxpayers benefit from personal minimum allowances (minimo personal y familiar), deductions for mortgage interest on primary residence (being phased out but still applicable in some cases), deductions for pension contributions, charitable donation deductions, and regional deductions that vary by autonomous community. Under the Beckham Law, none of these apply. The 24% flat rate is applied to gross income with no reductions.

No tax treaty benefits. This is a critical and often misunderstood point. Although you are a Spanish tax resident, you are taxed under the IRNR (non-resident) rules. Tax treaties between Spain and other countries generally only benefit residents taxed under the standard regime. In practice, this means you may face double taxation on certain income streams — particularly pensions, royalties, and interest received from countries that withhold tax at source. You cannot claim a tax credit in Spain for foreign taxes paid on income that is also taxed in Spain.

Cannot offset foreign tax credits. Related to the above: if you have income from a country that withholds tax at source (for example, dividend withholding tax from a country where you hold shares), you cannot credit that foreign tax against your Spanish liability. Under the standard IRPF regime, Spain's system of deducciones por doble imposicion internacional would allow you to offset that foreign tax. Under the Beckham Law, no such offset exists.

Higher rate on low incomes. For incomes below approximately €17,000-€18,000 per year, the standard IRPF regime produces a lower effective tax rate than the Beckham Law's flat 24%, due to personal allowances and the 19% rate on the first €12,450. This makes the regime pointless for low-income earners.

Potential complications with home country. Some countries (notably the Netherlands and Germany) have complex tax treaty interactions with Spain's Beckham Law regime. Because you are technically a resident taxed under non-resident rules, your home country's tax authority may take the position that the tax treaty does not fully apply, potentially leading to double taxation disputes on certain types of income.

Exit planning required. When the six-year period ends, the transition to full IRPF rates requires planning. If your income is €100,000, your marginal rate jumps from 24% to approximately 45%. This cliff edge needs managing — possibly through timing of bonuses, restructuring compensation packages, or other legitimate planning measures.

Real Calculation Examples: How Much Do You Actually Save?

Numbers tell the real story. Below are three examples comparing the tax liability under the Beckham Law versus the standard IRPF regime for 2025-2026. All examples assume Spanish-source employment income only, single taxpayer, no children, no other income, and standard Social Security contributions already deducted.

Example 1: Annual Salary of €60,000

At €60,000, the Beckham Law provides a modest saving. The real benefit at this income level comes from exemption on any foreign income or assets rather than the rate differential itself.

Example 2: Annual Salary of €100,000

At €100,000, the savings become very significant. Over six years, you keep an additional €56,424. If you also have foreign investment income or property income that goes untaxed, the real benefit is even higher.

Example 3: Annual Salary of €150,000

At €150,000, the Beckham Law saves nearly €20,000 per year — almost €120,000 over the full six years. For high earners, this is life-changing money. It can fund the purchase of a property, build a substantial investment portfolio, or simply provide a dramatically higher quality of life during the years in Spain.

Digital Nomad Visa + Beckham Law: The Perfect Combination

Spain's digital nomad visa (Visado para teletrabajo de caracter internacional), introduced by the Startups Act (Ley 28/2022) in January 2023, created the legal framework for remote workers employed by foreign companies to live and work in Spain. The subsequent extension of the Beckham Law to cover these workers created what many tax advisors call the most attractive combination in European taxation.

Here is how it works: You apply for a digital nomad visa, which grants you legal residence and work authorisation in Spain for up to five years (initial one-year visa, renewable for a three-year residence permit, then two more years). As a digital nomad visa holder working for a foreign employer, you meet the qualifying criteria for the Beckham Law. You then apply for the Beckham Law within six months of starting your work activity in Spain.

The result: you pay just 24% flat tax on your salary from your foreign employer, and any other foreign income (investments, rental property, capital gains) is completely exempt from Spanish tax. You have no wealth tax on foreign assets, no Modelo 720 reporting requirement, and a simplified tax filing process.

Compare this with the situation before 2023, when a remote worker moving to Spain would have been taxed under the standard IRPF regime on worldwide income at rates up to 47%, plus wealth tax, plus the Modelo 720 reporting obligation. The difference is transformative.

Key requirements for the digital nomad visa:

• You must have been employed by or had a professional relationship with the foreign company for at least three months before applying (or demonstrate significant income from a foreign company)
• The foreign company must not have a permanent establishment in Spain
• You must demonstrate that your work can be carried out remotely
• You need private health insurance covering Spain
• You must meet minimum income requirements (approximately 200% of the Spanish minimum wage, roughly €2,520/month in 2025-2026)
• Clean criminal record

Practical tip: Apply for the digital nomad visa first, then apply for the Beckham Law once you have your NIE and have started your work activity in Spain. The two processes are separate — one is an immigration matter handled by the Unidad de Grandes Empresas or the consulate, and the other is a tax matter handled by AEAT. But they work together seamlessly when timed correctly.

Comparison with Other European Flat Tax Regimes

Spain's Beckham Law does not exist in isolation. Several European countries offer special tax regimes for incoming residents. Here is how they compare as of 2026:

Portugal NHR (Non-Habitual Resident) — Ended

Portugal's NHR regime, which offered a 20% flat rate on Portuguese-source employment income from "high value-added activities" and exemption on most foreign income, was one of Spain's main competitors. The Portuguese government closed the NHR programme to new applicants from January 2024. Existing NHR beneficiaries retain their status for the full ten-year period, but no new applications are accepted. Portugal introduced a more limited replacement regime (IFICI) targeting specific scientific and tech roles, but it is far more restrictive than the original NHR.

For new movers, this makes Spain's Beckham Law effectively the best option on the Iberian Peninsula. The Beckham Law's 24% rate is slightly higher than Portugal's former 20%, but Spain's regime is now open while Portugal's is not.

Italy Flat Tax (Regime dei Neo-Residenti)

Italy offers a flat tax of €100,000 per year on all foreign income for new residents who have not been tax residents of Italy for at least nine of the previous ten years. Additional family members can be included for €25,000 each. Italian-source income is taxed at standard progressive rates (up to 43% plus regional and municipal surcharges).

The Italian regime is structurally different from Spain's Beckham Law. Italy charges a fixed amount regardless of how much foreign income you earn, while Spain exempts foreign income entirely. Italy taxes Italian-source income at normal rates, while Spain applies 24% flat to Spanish-source income. For someone with very high foreign income (above €1 million), Italy's €100,000 cap can be attractive. For most professionals earning €60,000-€200,000, Spain's Beckham Law produces a better overall result because it reduces the tax rate on the income you actually earn in Spain.

Greece: 7% Flat Tax on Foreign Income

Greece offers a 7% flat tax on all foreign income for retirees who transfer their tax residency to Greece, commit to spending at least 183 days per year in Greece, and transfer at least €40,000 per year of foreign income to a Greek bank account. This regime is specifically designed for retirees receiving pensions and investment income from abroad. Greek-source income is taxed at standard progressive rates.

For retirees living on foreign pensions and investments, Greece's 7% rate is the lowest in Europe and beats Spain's Beckham Law. But it is limited to pensioners — it does not apply to working professionals. For working professionals, Spain's Beckham Law remains more relevant.

Summary Comparison Table

When the Beckham Law Is NOT Worth It

The Beckham Law is not universally beneficial. Here are the specific situations where opting in would actually cost you money or create problems:

Low income (below approximately €24,000). At these income levels, the standard IRPF regime with personal allowances and the lower 19% starting rate produces a lower effective tax rate than the flat 24%. If you are earning a modest salary in Spain, the Beckham Law makes you pay more tax, not less.

Significant foreign employment income subject to withholding tax. If you earn employment income from a country that withholds tax at source and you cannot claim a tax credit in Spain under the Beckham Law regime, you face double taxation. For example, if you have foreign employment income of €30,000 with 15% withholding in the source country (€4,500), and you also owe 24% Spanish tax on that income (€7,200), your total tax is €11,700 — an effective rate of 39%. Under the standard IRPF, you could credit the €4,500 foreign tax, reducing your Spanish liability and your overall rate.

Large pension contributions. If you are making significant contributions to a Spanish pension plan, the standard IRPF regime allows you to deduct up to €1,500 per year (or more in certain employer-contribution schemes) from your taxable base. Under the Beckham Law, this deduction does not apply. For higher earners at the 37-45% marginal rate, pension deductions under the standard regime can be worth €555-€675 per year. This alone is unlikely to outweigh the Beckham Law's benefits for higher earners, but combined with other lost deductions, it can shift the calculation for earners in the €50,000-€70,000 range.

Significant charitable donations. The standard IRPF regime offers generous deductions for charitable donations — typically 80% of the first €250 donated and 40% of amounts above that (with enhanced rates for recurring donations). If you make substantial charitable contributions, the lost deduction under the Beckham Law is another factor to weigh.

Tax treaty complications. If your situation involves income from multiple countries and relies on tax treaty provisions for eliminating double taxation, the Beckham Law's exclusion from treaty benefits can create more problems than it solves. This is particularly relevant for people with pension income from the UK, Netherlands, or Scandinavian countries, where treaty provisions specifically govern pension taxation.

Application Checklist and Common Mistakes

Based on the most common errors seen by tax advisors handling Beckham Law applications:

Do:

• Apply within six months — this is the number one mistake, and it is fatal to the application
• Obtain your NIE immediately upon arrival in Spain
• Register with Social Security promptly
• Keep all records of your tax residency in your previous country for the five years before your move
• Hire a tax advisor who specialises in the Beckham Law — general accountants often lack the specific expertise
• Inform your employer about the regime so they apply correct withholding rates (24% instead of standard progressive withholding)
• File Modelo 151 (not Modelo 100) for your annual tax return
• Plan your exit from the regime — start preparing two to three years before the six-year period ends

Do not:

• Assume the regime applies automatically — you must actively apply with Modelo 149
• File Modelo 720 or Modelo 721 while under the regime — you are exempt, and filing them can create confusion about your status
• Forget to declare Spanish-source income from all sources — the regime exempts foreign income but still requires complete reporting of Spanish income
• Ignore the transition to standard IRPF at the end of the six-year period
• Try to "restart" the regime by leaving Spain and returning — the five-year absence requirement means you would need to leave for five full tax years before potentially reapplying

Frequently Asked Questions

Can my spouse also apply? Yes, if your spouse independently meets the eligibility criteria — they must have their own qualifying work activity in Spain. A non-working spouse cannot access the Beckham Law merely because their partner qualifies. However, if both spouses are employed or self-employed in Spain, each can apply separately.

Does the Beckham Law affect my property purchase? Not directly. You can buy property in Spain regardless of your tax regime. However, the Beckham Law does affect your wealth tax liability (foreign assets are exempt) and your tax obligations as a property owner (you file under the IRNR framework). If you buy property in Spain, you will still owe IBI (property tax) and the standard non-resident imputed income tax on any property that is not your primary residence.

What happens if I leave Spain before the six years are up? If you leave Spain and cease to be a tax resident before the end of the six-year period, the regime simply ends early. You cannot "pause" it and resume later. If you return to Spain in the future, you would need to meet the five-year non-residency requirement again before potentially reapplying.

Can I switch from standard IRPF to Beckham Law? Only if you meet all the eligibility requirements, including the requirement that you have not been a Spanish tax resident in the prior five years. If you are already living in Spain under the standard IRPF regime, you cannot switch to the Beckham Law.

Is the Beckham Law being phased out? As of 2026, there are no announced plans to end the regime. If anything, the 2023 expansion suggests the Spanish government sees value in maintaining and broadening it. However, tax regimes can change with political shifts, and no guarantees can be given about future availability. The best strategy is to apply while the regime exists and benefit from the guaranteed six-year duration once accepted.

Frequently Asked Questions

The Legal Framework: Article 93 of Ley 35/2006?

Understanding the legal foundation matters because the Beckham Law is not a separate law — it is a specific provision within the Spanish personal income tax legislation. Article 93 of Ley 35/2006 establishes that individuals who become Spanish tax residents due to their move to Spain can opt to be taxed under the Non-Resident Income Tax rules (Impuesto sobre la Renta de No Residentes, or IRNR) for a limited period, while technically being tax residents. This is the key concept: you are treated as a tax resident of Spain for the purposes of tax treaties and residency obligations, but you are taxed as if you were a non-resident. This hybrid status creates several powerful advantages and a few notable limitations that we will explore in detail.

Duration: Six Tax Years?

The Beckham Law applies for the tax year in which you become a Spanish tax resident plus the following five tax years — a total of six fiscal years. Spanish tax years align with calendar years (January to December). Timing your move strategically can make a significant difference. If you move to Spain in January 2026, your Beckham Law period runs from 2026 through 2031 — six full calendar years. If you move in November 2026, the first year (2026) covers only two months, but you still use up one of your six years. The regime runs from 2026 through 2031 regardless, but your first year captures only a fraction of its potential benefit.

Who Does NOT Qualify?

Professional sportspersons. Since the 2015 reform (Real Decreto-ley 3/2014, effective from January 2015), professional athletes and sportspersons are explicitly excluded from the Beckham Law. This was a politically motivated change — public anger over football players paying a fraction of the tax rate paid by ordinary workers drove the reform. The irony is that the law still carries Beckham's name despite the fact that someone in his position could no longer benefit from it. Anyone who has been a Spanish tax resident in the prior five years. No exceptions. Even one year of tax residency in the five years before your intended move disqualifies you.

Benefits Beyond the Flat Rate?

The 24% flat rate is the headline, but several other benefits make the Beckham Law regime even more attractive: Only Spanish-source income is taxed. Under the standard IRPF regime, Spanish tax residents are taxed on their worldwide income — every euro earned anywhere in the world. Under the Beckham Law, only income sourced in Spain is subject to Spanish tax. Foreign rental income, foreign dividends, foreign interest, and foreign capital gains are all exempt from Spanish taxation (with one exception discussed below). For anyone with international investments, property abroad, or passive income from foreign sources, this exemption alone can save thousands.

Real Calculation Examples: How Much Do You Actually Save?

Numbers tell the real story. Below are three examples comparing the tax liability under the Beckham Law versus the standard IRPF regime for 2025-2026. All examples assume Spanish-source employment income only, single taxpayer, no children, no other income, and standard Social Security contributions already deducted. Example 1: Annual Salary of €60,000

ItemStandard IRPFBeckham Law Gross salary€60,000€60,000 Personal allowance-€5,550€0 Taxable base€54,450€60,000 Tax calculation19% on first €12,450 = €2,365.5024% on next €7,750 = €1,860.0030% on next €15,000 = €4,500.0037% on remaining €19,250 = €7,122.5024% on €60,000 = €14,400.00 Total tax€15,848.00€14,400.00 Annual saving€1,448 with Beckham Law Over 6 years€8,688 total saving

At €60,000, the Beckham Law provides a modest saving. The real benefit at this income level comes from exemption on any foreign income or assets rather than the rate differential itself.