What is the Ley Beckham?
The Régimen Especial de Trabajadores Desplazados — popularly known as the Ley Beckham after David Beckham reportedly used it when he joined Real Madrid in 2003 — is a special tax regime available to individuals who become Spanish tax residents due to a move to Spain for work. Under this regime, the individual is taxed only on income arising in Spain (not on worldwide income) at a flat rate of 24% on income up to €600,000, and 47% above that threshold. This is significantly more advantageous than the standard progressive IRPF rates (which reach 47% from €60,000 upwards for the general base).
Who Can Apply for the Beckham Law in 2026?
Significant changes were made in 2023 to expand the scope of the Beckham Law (under the Ley de Startups). In 2026, the regime is available to:
- Employed workers relocated to Spain by a foreign employer or a Spanish company, on an employment contract
- Digital nomads who have obtained the Spanish Digital Nomad Visa and work remotely for foreign companies or clients
- Entrepreneurs who have moved to Spain to run a business activity with an innovative character or of special economic interest
- Highly qualified professionals providing services to emerging companies (startups)
- Investors / passive income: Since the 2023 Startup Law reform, individuals who move to Spain to carry out wealth management activities can also qualify — including those living off investment income and dividends from non-Spanish sources
Key exclusion: You must not have been Spanish tax resident in the previous 5 years (10 years under the old pre-2023 regime).
The Tax Advantages in Numbers
To illustrate the savings: a new Spanish tax resident earning €120,000 in salary from a Spanish employer:
- Under standard IRPF: Progressive rates from 19% to 45%+ — approximate total tax circa €46,000–€52,000.
- Under Beckham Law: Flat 24% on €120,000 = €28,800.
The saving in this example is approximately €18,000–€23,000 per year. Over 6 years, this can represent savings of €100,000+. The regime is most valuable for high-income earners — above €60,000–€70,000 per year — where the progressive IRPF rates most significantly diverge from the flat 24%.
Application Process and Deadline
To elect the Beckham Law regime, you must file Modelo 149 with the Spanish Tax Agency within 6 months of the date of registration in the Social Security system (for employed workers) or the date of starting the activity in Spain. This deadline is firm — missing it means losing the right to the regime for the entire period of stay in Spain. There are no extensions.
The application is made via the AEAT (Agencia Tributaria) online portal. Your tax advisor or lawyer prepares and submits Modelo 149 and monitors the AEAT's acceptance. Once approved, you file annual tax returns using Modelo 151 (non-resident format) instead of the standard Modelo 100 IRPF return.
Duration and Important Limitations
The Beckham Law applies for the year you become tax resident plus the 5 following years — a total of up to 6 years. After 6 years, you automatically switch to the standard IRPF regime on worldwide income at progressive rates.
Important limitations to understand:
- No deductions or allowances: Under the Beckham regime, you cannot use the standard IRPF deductions (mortgage interest, personal allowances, pension contributions, etc.). For people with significant deductible expenses, the standard regime might actually be more advantageous.
- Foreign income not exempt — not declared: Foreign-source income (e.g., rental income from a property abroad, dividends from foreign companies) is simply not taxed in Spain under Beckham — but it IS still taxable in your home country or wherever it arises. This is a simplification rather than an exemption.
- Wealth tax: Beckham Law holders are taxed on Spanish wealth (not worldwide wealth) — another potential advantage compared to standard tax residents.
- No Modelo 720: Beckham Law holders are not required to file the Modelo 720 declaration of overseas assets (a significant compliance relief).