The Beckham Law in Spain - Everything you have to know
Do you know the Beckham Law in Spain? In this article, we will explore in detail the Beckham Law, its implications, and what you need to know if you find yourself in a situation that may apply to this regime.
What is the Beckham Law?
The Beckham Law in Spain is a special tax regime aimed at foreigners who move to live and work in the Spain. Named after the footballer David Beckham, one of the first beneficiaries, this law offers significant tax advantages to attract qualified foreign talent to Spain.
Who Can Benefit from the Beckham Law?
The Beckham Law can apply to various foreign professionals,developers, marketing, coaches, managers, and many other employments who meet the requirements established by Spanish legislation. However, it is essential to have specialized legal and tax advice to understand if you qualify and how you can make the most of its benefits.
Main Requirements:
- Not having been a tax resident in Spain for the last 10 years.
- Having an employment contract that justifies the move to Spain.
- Not earning income from a permanent establishment in Spain.
- Meeting specific deadlines to move and start working in Spain.
Advantages of the Beckham Law:
- Taxation at a fixed rate of 24% on income earned in Spain, up to a maximum of 600,000 euros (above this amount, the tax rate is 47%).
- Only income earned in Spain is taxed, except for employment income.
- Taxation in the Wealth Tax is only for assets located in Spain.
- There is no need to submit the Model 720 Foreign Asset Declaration.
Application Process:
The application to benefit from the Beckham Law must be made within 6 months of the start of the employment relationship in Spain. It requires the submission of Form 030 and Form 149 to the Tax Agency, along with documents such as the passport, NIE (foreigner identification number), Social Security number, and employment contract. In addition, it is necessary to request a tax residence certificate in Spain.
Tax Obligations:
Beneficiaries must annually file the Personal Income Tax (IRPF) return using Form 151 and the non-residents' tax return through Form 216.
The Beckham Law in Spain is a special tax regime designed to attract highly qualified professionals and foreign athletes. If you are in a situation that may apply to this regime, it is essential to understand its implications and requirements. The right legal and tax advice will help you make the most of the benefits of this legislation while ensuring compliance with all relevant regulations. At OBN&, we are here to provide you with the guidance and support you need to navigate the Beckham Law in Spain and make informed decisions about your tax situation.