The Beckham Law allows foreign workers in Spain taxed at a fixed rate of 24% for six years, providing significant tax savings.
Discover who can benefit from the regime of impatriados of the Spanish income TAX under the Law Beckham and how to benefit from a tax favorable to live in Spain.
Who can opt for the regime of impatriados of the Spanish income TAX?
The Beckham Law, officially known as the special tax regime for displaced workers to Spanish territory, allows certain individuals to benefit from a tax pro. This regime is addressed to:
- Foreign workers who move to Spain for business reasons.
- Managers and senior officials transferred by their companies.
- Professional athletes and artists.
- Researchers and scientists.
To qualify for this scheme, applicants must not have been tax resident in Spain during the ten years prior to their displacement and must be hired by a company in Spain, or assigned to a management position.
Tax benefits compared with taxation as a non-resident
Under the Beckham Law, the impatriados taxed only by their income obtained in Spain at a fixed rate of 24% up to 600,000 euros and 47% for the excess, in place of the progressive rates of the Spanish income TAX that can reach up to 45%. In comparison, the non-resident without this scheme are taxed at 24% on all of their income from Spanish source, without access to deductions or tax benefits available to residents.
Benefits of the regime of impatriados:
- Tax Savings Significant: The impatriados can save a considerable amount in taxes, especially those with high income.
- Simplification of taxation: The fixed-rate makes tax planning is more simple and predictable.
Save money on taxes by living legally in Spain
The Beckham Law is a powerful tool for those who wish to live in Spain, and benefit from a favourable tax regime. Live in Spain not only offers a high quality of life, but also the possibility to optimize your tax situation of the legal and advantageous.
Duration of the tax incentive
The regime of impatriados can be applied for a maximum period of six years: the year of arrival in Spain and the following five years. This incentive provides a tax planning in the medium term, allowing the impatriados enjoy tax benefits as long as it is set in Spain.
History of the Beckham Law
The Beckham Law owes its name to the famous footballer David Beckham, who benefited from this scheme when he signed for Real Madrid in 2003. The rules are designed to attract international talent to Spain, offering a tax incentive to qualified professionals and displaced workers. Since its implementation, the law has been revised and modified, but it is still a major appeal to professionals from various fields who seek to reside in Spain.
Contact us for specialist advice
In our boutique legal attorney, we understand the intricacies of the regime of impatriados and we are here to help you make the most of these tax benefits. We offer a complete service, from the initial request until the resolution of any questions during and after the process. Our experts in international tax law and Web 3 can provide specific consultancy in both Spanish and English.
Now you can start to optimize your tax benefits today! Book your consultation with us and let our experts guide you at every step to establish your business in Spain and across the EU.
