BackThe so-called Beckham Law, the Special Tax Regime applicable to workers, professionals, entrepreneurs and investors moving to Spanish territory, and which is regulated in article 93 of the Personal Income Tax Law, is a tax regime that adopts a better taxation for workers who move their tax residence to Spain due to their employment.
The Beckham Law is a regime that has many advantages when it comes to taxation if you are a qualified worker and move your residence to Spain.
The Beckham Law is applicable for 6 years, with the option to renounce earlier, it is an optional regime and is presented through an application to the Tax Agency proving that all the requirements are fulfilled.
The benefits offered by the Beckham Law are several. Firstly, among its parameters it is established that only the income obtained in Spain will be taxed in Spain. Secondly, it offers taxation of salaries at a fixed rate of 24% up to 600,000 euros and 47% thereafter.
In order to be eligible for the Beckham Law, you need to have been resident in Spain for at least 5 years, and that the movement is produced by an employment contract, an economic activity considered as entrepreneurial or carried out by a highly qualified professional. It is also applicable for administrators of companies regardless of the percentage of participation they hold, except for patrimonial companies, whose percentage of participation may not exceed 25%.
The advantages of the Beckham Law range from the aforementioned taxation only on income obtained in Spain, the non-obligation to file the 720 tax form or that only assets located in Spain are taxed in the Wealth Tax.
If you have any questions about the Beckham Law or need advice, please do not hesitate to contact us.
B Law & Tax International Tax & Legal Advisors.
“In B LAW&TAX we are specialists in international tax advice both for companies and individuals. If you would like further information, we will be pleased to assist you at 917817194 or at [email protected].”
