What is the Beckham law in Spain and how does it work?

There’s lots to think about if you’re planning a move to Spain from the UK, including packing, shipping and finding somewhere to live.

Unfortunately, it also means thinking about the potential tax implications of a move abroad. While you’re looking into this, it’s useful to know about something called the Beckham law.

In this guide for UK expats, we’ll look at what the Beckham law is, how it works and how it may affect you.

And don’t forget, you’ll need a way to manage your money while living in Spain. Open a Wise account and you can send and spend in 150+ countries and hold 40+ currencies at once, including both EUR and GBP.

What is the Beckham law in Spain?

The Beckham law, also known as Beckham’s law or the Beckham rule, is a tax exemption. It was introduced in order to attract foreign talent, skilled professionals and high-net-worth individuals to come live and work in Spain.

It offers significant tax benefits to anyone who is eligible - we’ll look at the requirements and how it works in just a moment.

If accepted, you’ll pay income tax on Spanish-sourced earnings at a special flat rate of 24% (on a maximum of €600,000 EUR in annual earnings).¹

This is instead of paying the progressive tax rates that residents pay, which can soar as high as 47% depending on how much income you earn and where in the country you live.²

💡And why is it called the Beckham law? It’s actually named after the most famous Beckham in the UK, footballer David Beckham - who was one of the first UK expats to take advantage of it when it became law in 2005. Ironically now though, the law has changed so that professional sports players can no longer benefit from it.

How the Beckham rule works

The Beckham rule allows you to be considered a non-resident in Spain for tax purposes - even if you live there.

This means you’ll pay a different and flat rate of income tax compared to residents, and you’ll pay tax only on income you earn in Spain rather than worldwide.

Key things you need to know:¹

• The rule will apply for a maximum of 6 years, which includes the year you move to Spain and the following 5 tax years after that.
• Once the rule ends, your income will be taxed according to the usual progressive tax rates that Spanish residents pay. You’ll also have to pay tax on worldwide income.
• You’ll only get the flat tax rate for income up to €600,000 EUR - any earnings above that will be taxed at a rate of 47%.

However, you can only benefit from the tax exemption if you meet very particular eligibility criteria.

Eligibility for the Beckham tax law exemption

You’ll need to meet all of the criteria below to take advantage of Beckham’s law and all the tax benefits that come with it:³

• You haven’t been a Spanish tax resident in the previous 5 years before moving to Spain
• You’re moving to Spain for work purposes - you’ll either have a job offer from a Spanish company or be working there for a foreign company, have a Spanish digital nomad visa, or be a company director who owns less than 25% of its shares (unless you’re starting a business in Spain and have a start-up or entrepreneur visa).
• The work you’ll be doing in Spain will be your main job - you can carry out a maximum of 15% of your overall work abroad.

The conditions above also apply to your spouse, children or any other dependents who move to Spain with you in the first year of the application.

You’re not eligible if you’re a professional sportsperson, are self-employed (unless you have a digital nomad visa) or you own more than 25% in shares as a company director.³

How to apply for the Beckham’s law exemption

If you think you meet the eligibility criteria above, you’ll need to submit an application for Beckham law status. Within 6 months of starting work in Spain, you’ll need to apply to the Spanish Tax Agency (AEAT) with the following supporting documents:¹

• Your photo ID
• Proof of registration with Spanish Social Security
• A copy of your employment contract, along with other proof of employment if asked
• A previous tax residency certificate from the UK, proving you haven’t been a tax resident in Spain for the last 5 years
• Your Foreigner Identification Number (NIE).

After reading this, you should have a better idea of what Beckham’s law is and whether you’d be eligible to apply. If so, it could mean you pay less tax on your Spanish income while living and working in Spain.

📚 Moving to Spain guide

And remember, you’ll need a way to manage your money while living in Spain. Open a Wise account and you can send and spend in 150+ countries and hold 40+ currencies at once, including both EUR and GBP. You can also spend across 40+ countries using the linked Wise card for only a small, transparent fee*.

Open your Wise account 🌍

Sources used:

1. Oyster HR - Support - What is Beckham Law in Spain?
2. Experts for Expats - Spanish Tax Guide for expats and foreign nationals
3. Parakar - Beckham Law in Spain

Sources last checked on date: 16-Apr-2025