B Law & Tax
29 January 2024

Tax Advisor: Guide to Adhering to the Beckham Law: How to do it?

The specific regulation applied to workers relocating to Spanish territory, commonly known as the Beckham Law, offers a more favorable tax treatment for those with substantial income who decide to change their tax residence to Spain.

Beckham Law in Spain: Conditions

The Beckham Law provides tax benefits to individuals who move to Spain to carry out economic activities, provided they meet certain requirements.

These include not having been residents in Spain in the last 5 years before the relocation. In addition, self-employed individuals seeking to take advantage of this regime must meet at least one of the following conditions: acquire the status of administrators of an entity, start a business activity in the country, or engage in economic activity as highly qualified professionals.

This regime also applies to newly arrived foreign workers, expatriates with high incomes in managerial or executive roles, and administrators joining a company to work.

Tax Benefits and Updates: Beckham Law in Spain

The Beckham Law offers tax benefits to those who meet its requirements, providing tax advantages during the year of the change of residence and the following five years. These benefits come from taxation under the Non-Resident Income Tax (IRNR), with more favorable rates for high incomes. Starting in 2023, family members who move simultaneously or subsequently to the main taxpayer can also benefit, as long as the sum of their taxable bases is lower than that of the main taxpayer.

Inclusion of Digital Nomads in the Beckham Regime from 2023

Since 2023, the special regime for workers relocated to Spain has been extended to include digital nomads, i.e., professionals who work remotely from anywhere in the world.

It is important to note that, at the end of 2023, the Ministry of Finance approved a Royal Decree allowing foreign workers who relocated to Spain in 2022 or 2023 to retroactively benefit from the Beckham Law.

With the rise of telecommuting, freelance digital nomads find the Beckham Regime an attractive tax option to establish their residence in Spain. The only requirement to benefit from this tax regime is to carry out International Telecommuting activities, verified through a Telecommuting Visa.

How to Apply?

To access the benefits of this regime, it is essential to notify the Tax Agency by submitting Form 149 within a period not exceeding six months from the start of the activity or arrival in Spanish territory.

In summary:

The Beckham Law in Spain provides tax benefits to individuals relocating their residence to the country, especially those with substantial incomes. This regime also extends to self-employed individuals and high-level foreign workers. Starting in 2023, digital nomads are included, who can take advantage of these tax benefits by establishing their residence in Spain. To apply for these benefits, it is crucial to notify the Tax Agency by submitting Form 149 within six months from the start of the activity or arrival in Spanish territory.

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