The Beckham Law is a special tax regime that enables foreigners who move to Spanish territory to pay a flatlat rate of 24% on your first 600,000 € of income and the excess over this amount at 47%. You will only be taxed on your Spanish earnings and foreign income from employment. Any other worldwide income or capital gains will not be taxed. This situation also applies to workers who were Spanish residents including workers with Spanish nationality that has been abroad at least 5 years.

 

This special regime applies in the year of arrival and for the following five tax years, so six years in total. The tax year runs from the 1st of January to the 31st of December. Tax returns must be filed from April to the 30th of June of the following year.

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Under the umbrella of this regime, you are not taxed as a Spanish resident therefore the double taxation agreements will not apply when necessary, this could have significant consequences depending on your circumstances; in the worst case, you may be taxed twice for the same income. Also you will not be able to apply any resident deduction or tax allowance according to your personal circumstances in your income tax.

 

Any foreigner who moves to Spain can apply it, as long as they meet the following conditions:

 

- Individuals gn workers with a job offer in Spain that have not been tax residents in the last five years. .

- The job offer has to be with a Spanish company or have a job contract or with a permanent Spanish  establishment of a foreign company.

- High-income expats who hold executive or management positions.

- Administrators that have relocated and work in a Spanish company and do not own more than a 24% shareholding.

- Employment duties must be carried out in Spain. If part of your duties has to be performed outside of Spain, there are some limitations that should be taken into consideration to ensure that this regime can apply.

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Our team will analysize your situation and decide what system works best for you in on both a  short-term  and long- term basis considering your worldwide income and circumstances.

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