Planning a move to Spain in 2025? The Beckham Law, officially known as the Special Expats' Tax Regime (SETR), offers a strategic tax advantage for foreign professionals relocating to Spain. This special regime allows eligible individuals to significantly reduce their tax burden for up to six years.

In this comprehensive guide, we’ll explain what the Beckham Law is, who can benefit, how to apply, and what to expect during and after the application process.

What Is the Beckham Law?

The Beckham Law was introduced in 2005 to attract international talent to Spain. Named after football star David Beckham, the regime originally targeted professional athletes but has since expanded to include a broader group of employees and executives.

Under this law, qualifying expats pay a flat income tax rate of 24% on Spanish-sourced earnings up to €600,000 per year and 45% on income above that threshold. More importantly, foreign income is not subject to Spanish taxation while under this regime, which is particularly attractive for high-net-worth individuals and remote workers.

Who Can Apply for the Beckham Tax Regime?

To qualify for the Beckham Law in 2025, applicants must meet specific conditions. Here’s who is eligible:

1. Foreign employees hired by Spanish companies.
2. Remote workers employed by non-Spanish entities.
3. Highly qualified professionals working in startups or research and development sectors.
4. Company directors who own less than 25% of the company, or more if they are not involved in asset management.
5. Spouses and dependents (children under 25 or dependents with disabilities) of qualifying individuals.

Who Is Not Eligible?

The Beckham Law excludes the following:

1. Freelancers and self-employed individuals.
2. Professional athletes.
3. Applicants who miss the six-month application window after arriving in Spain or registering with Spanish Social Security.

Key Tax Benefits of the Beckham Law

1. A flat income tax rate of 24% on Spanish earnings up to €600,000.
2. A 45% tax rate on income above €600,000.
3. No taxation on worldwide income.
4. Wealth tax applies only to assets located in Spain.
5. No obligation to submit Modelo 720 to declare overseas assets.
6. Exemption from Spain's new solidarity tax on high-net-worth individuals.
7. The option to include family members under the same tax treatment.

What Happens Without the Beckham Law?

If you do not apply for the Beckham regime, you become a regular Spanish tax resident after spending more than 183 days in the country. In that case, your entire global income becomes taxable under Spain’s progressive tax system, which ranges from 19% to 54% depending on your region and income level.

This can lead to a significantly higher tax burden, especially for high earners and those with income from abroad.

How Long Does the Beckham Law Last?

The Beckham Law applies for six consecutive tax years, starting from the first year you become a Spanish tax resident. After the six-year period ends, you will be subject to Spain’s standard tax rules, including worldwide income taxation and access to deductions and tax treaties.

How to Apply for the Beckham Law in 2025

To take advantage of the Beckham tax regime, follow these steps carefully:

1. Obtain a Spanish Tax Identification Number (NIE)

Before applying, you need a NIE (Número de Identificación de Extranjero). This is a personal tax ID required for all legal and financial transactions in Spain. You can apply for a NIE through Spain’s immigration office or at your local Spanish consulate.

2. Register as a Taxpayer with the Agencia Tributaria – Submit Modelo 030

Once you have your NIE, submit Modelo 030 to the Agencia Tributaria (Spanish Tax Agency). This form officially registers you as a taxpayer in Spain and confirms your fiscal residency status.

3. Apply for the Beckham Regime – Submit Form 149

Next, you must complete and file Modelo 149 within six months of either:

1. The date of your official registration with Spanish Social Security, or
2. Your official arrival date in Spain.

You’ll need to include supporting documents such as your NIE, employment contract, passport, and proof of social security registration.

4. Await Approval and Present Certificate to Your Employer

Once your application is reviewed and approved, you will receive a certificate confirming your acceptance into the regime. You must provide this certificate to your employer so they can apply the 24% flat tax rate to your salary.

Approval times can range from 10 days to 2 months.

5. File Annual Tax Returns Using Modelo 151

Every year while under the Beckham regime, you must file your tax return using Modelo 151. This form is specific to individuals covered under the Beckham Law and ensures compliance with Spanish tax regulations.

Important Deadlines

Time is critical. You must submit your application for the Beckham Law within six months of registering with Spanish Social Security or entering Spain, whichever comes first. Late applications will not be accepted, and you will lose eligibility permanently.

Additional Tax Considerations for Expats in Spain

Even under the Beckham Law, there are other Spanish tax rules to be aware of:

1. Capital Gains Tax: 19% to 28% on Spanish-based capital gains.
2. Inheritance and Gift Tax: Generally similar to non-residents, though some regions offer favorable rates.
3. Wealth Tax: Only applicable to assets physically located in Spain.

Limitations of the Beckham Law

While this tax regime offers considerable advantages, it’s not suitable for everyone. Consider the following drawbacks:

1. You cannot claim deductions for family or personal circumstances.
2. You are excluded from using double taxation treaties.
3. The regime is less beneficial for low- to mid-income earners.
4. After six years, you become fully liable for Spain’s regular tax rat

Should You Use a Tax Advisor?

Yes, especially if your situation involves complex income streams or international investments. A tax advisor can:

1. Ensure you apply correctly and on time.
2. Help you gather the necessary documentation.
3. Navigate the rules around family inclusion or director status.
4. Maximize your tax efficiency and prevent legal issues.

Final Thoughts: Is the Beckham Law Right for You?

The Beckham Law is one of the most powerful tax incentives available to expats moving to Spain. For high-income earners and remote workers, it offers significant financial advantages by limiting taxation to Spanish income at a reduced rate.

To benefit fully, it's essential to act quickly, follow the application process carefully, and stay compliant each year. If you're relocating to Spain in 2025, the Beckham Law could be a game-changer for your financial planning.

For official forms and application details, visit the Agencia Tributaria.