The Beckham regime: 24% flat tax, six years long — and why it isn't for pensioners

The Beckham Law is a Spanish tax regime for people who come to Spain to work there, with an income that's worth treating separately. It's named after a footballer who used it in 2005, and that is at once the best summary of who it's meant for.

Formally it is article 93 of Ley 35/2006, the Spanish income tax act. There it's called the régimen especial, the special regime for employees, professionals, entrepreneurs and investors who move to Spanish territory.

What it does

Whoever opts for it is treated for tax purposes as a non-resident while actually living in Spain. That has two consequences that together make up the whole advantage.

A flat rate on your employment income. 24% on your Spanish employment income, up to € 600,000 per payer per calendar year. Whatever comes above that is taxed at 47%. Compare that with the ordinary progressive brackets and the difference is considerable once you're above an average income.

Your foreign income largely stays out of reach. In principle you're taxed only on income from Spanish sources. For business activity and qualified services that themselves fall under the regime, exceptions apply.

Element	Rule
Rate on employment income	24% up to € 600,000 per payer per year
Rate above € 600,000	47% (since 2021)
Duration	the year of the move plus the five following tax years
Prior non-residence	five tax years (up to and including 2022: ten)
Opting in, waiving or exclusion	modelo 149
Return under the regime	modelo 151, the separate IRPF return

The conditions

Five years not a Spanish resident. Until 2023 that was ten; since 1 January 2023 the requirement has been reduced to the five tax years preceding your move.

A reason the regime recognises. This is where it falls apart for most readers of this site. The regime is tied to a trigger:

• an employment contract;
• a secondment;
• a directorship;
• entrepreneurship;
• the work of a qualified professional.

Since the 2023 amendment (Ley 28/2022, the start-ups act) more groups fall under it: remote workers, entrepreneurs and professionals. Under conditions it covers the family too: the partner and children under 25 (or older with a disability) who move along, or come later as long as the regime is still running.

A work permit isn't needed for that as an EU citizen. The reason only has to be demonstrable.

Opting in on time. It's an option you actively exercise with modelo 149. With the same form you also waive the regime or report your exclusion. With the election you attach the supporting documents from the implementing regulation. Whoever forgets simply falls under the normal system.

After that you file a separate return every year, modelo 151, instead of the ordinary Renta, the annual income tax return. Your employer meanwhile withholds 24% on your pay, and 47% on what comes above the € 600,000.