Moving to Spain can be worthwhile from a tax perspective – especially for employees and managing directors. Anyone who moves to Spain to work can pay tax on their income over five years as a so-called “non-resident” at a flat tax rate of 24% .
This regulation, originally known as the Beckham Law, was introduced to make it more attractive for top athletes in particular to move to Spain. Today, it is enshrined in Article 93 of the Spanish Income Tax Act – although professional athletes are now excluded from this special taxation. However, the regulation remains in place for all other employees.
Tax advantages at a glance
Even if you are officially considered to have unlimited tax liability in Spain, you will be treated as a “limited taxpayer” for tax purposes. This means that
- Fixed tax rate of 24 % on earned income up to € 600,000
- For income over € 600,000: Tax rate of 47% on the excess amount
- No progressive tax rate (which can otherwise be up to 45% from € 60,000)
Sample calculation:
A single employee without children with an annual gross income of €150,000 pays:
| Tax regulation | Tax burden | Effective tax rate |
| Standard taxation | approx. 56,000 € | approx. 37 % |
| Non-resident regulation | 36.000 € | 24 % |
| Savings | 20.000 € |
Wealth tax: Only Spanish assets are relevant
Another advantage: as a taxpayer with limited tax liability, you are only subject to Spanish wealth tax on the assets located in Spain.
The tax only applies if your net assets in Spain exceed €700,000 to €3,700,000 – depending on the region. In Mallorca, the tax-free amount is €3,000,000. Foreign assets generally remain tax-free.
Taxation of other income
In addition to earned income, other income as a non-resident is also taxed at fixed rates:
Investment income and capital gains:
| Income (in €) | Tax rate |
| Up to € 6,000 | 19 % |
| 6.000 – 50.000 € | 21 % |
| 50.000 – 200.000 € | 23 % |
| 200.000 – 300.000 € | 27 % |
| Over € 300,000 | 28 % |
All other income up to € 600,000 is taxed at 24%, above that at 47%.
Requirements for the application of the Beckham Law
You must:
- Have not been resident in Spain in the last 5 years
- Moving to Spain for a specific work or business reason
Permissible cases:
- Employment with a Spanish company or secondment/home office from Spain
- Takeover of a management position in an active Spanish company (without significant capital participation in holding companies)
- Establishment of a company with an innovative character (recognized by the Ministry in accordance with Law 14/2013)
- Work as a highly qualified specialist at a start-up, in research or teaching (proof required)
Application & special features
The special regulation must be applied for at the Spanish tax office within 6 months of the start of the activity using the Modelo 149 form.
Important:
Approval depends heavily on correct proof of the requirements. Many applications are rejected due to formal errors or missing documents. Early and careful planning is therefore recommended, including:
- Documentation of the causality between immigration and taking up employment
- Exact time sequence of registration, start of work and taking up residence
- Electronic access to the tax office (notifications)
- Fast response to queries from the authorities
After approval, you will receive a certificate for 5 tax years. Your employer can then directly withhold only 24% income tax.
Please note: The annual tax return is not submitted via the usual Modelo 100, but via the special Modelo 151.
