If you’ve ever wondered whether there’s a smarter way to relocate to Spain — financially speaking — the Beckham Law in Spain is worth knowing about.
Formally known as the Special Tax Regime for Inbound Workers, this Spanish tax incentive was created to attract international talent. But what makes it particularly appealing for globally mobile individuals is this: under specific conditions, foreign income may be excluded from Spanish taxation. That means if you have overseas investments, rental properties, or business income — and you’d prefer not to declare them in Spain — this regime could work in your favour. Understanding the Beckham Law in Spain can help maximize these benefits.
The law came into the spotlight in the early 2000s when footballer David Beckham joined Real Madrid and benefitted from the scheme. The nickname stuck — and today, the Beckham Law has become a common entry point for professionals, entrepreneurs, executives, and high earners looking to make Spain their base.
Whether you’re considering a long-term stay on the Costa del Sol, relocating for work, or weighing up life in Marbella, here’s what you should know.
What Is the Beckham Law?
The Beckham Law allows eligible expats who move to Spain for work to pay a flat income tax rate of 24% on Spanish-sourced income up to €600,000 per year. Any amount above this is taxed at 47%.
Just as importantly, the law can exempt qualifying foreign income from Spanish taxation — including certain types of investment income, rental returns, or business profits earned outside Spain. This makes it particularly attractive for individuals with complex or international income structures.
The regime lasts for six tax years from the year of arrival. Once it ends, you transition to becoming a regular Spanish tax resident — at which point global income becomes fully taxable in Spain.
Who Can Benefit from the Beckham Law?
To be eligible, you must:
- Not have been a Spanish tax resident in the previous five tax years
- Relocate to Spain for professional reasons (employment contract, director role, or qualifying entrepreneurial visa)
- Apply within six months of registering with Spanish Social Security
- Carry out the majority of your professional activity in Spain
Note: The scheme is not available to self-employed freelancers or digital nomads unless they are relocating under a recognised entrepreneurial visa or business structure that meets the criteria.
Key Benefits of the Beckham Law
- Flat 24% income tax on Spanish earnings up to €600,000 annually
- Foreign income may be excluded from Spanish tax (if certain conditions are met)
- No obligation to file Model 720, Spain’s foreign asset declaration
- No wealth tax applied to global assets during the regime
- A straightforward route for executives, entrepreneurs and international professionals to establish tax residency in Spain
For high earners or those with income in multiple jurisdictions, this can offer significant tax efficiency and peace of mind.
Considerations to Keep in Mind
While the Beckham Law is an appealing structure, it’s not a one-size-fits-all solution. A few key points to consider:
- The regime lasts only for six years
- No standard deductions or family allowances apply under this scheme
- If your income is relatively modest or fully based in Spain, it might not be the most advantageous option
- You may still have tax reporting obligations in your home country (e.g. U.S. citizens must continue filing with the IRS)
- Capital gains, interest, and dividends sourced from within Spain are taxed under normal Spanish savings income rules (19% to 28%)
That’s why individualised tax advice is essential before applying.
Why It Matters for Marbella-Based Buyers and Renters
Marbella and the wider Costa del Sol region continue to attract international professionals, entrepreneurs, and families looking for more than a holiday home. Whether you’re relocating short-term or settling in for the long run, the Beckham Law can be an effective tool to minimise tax exposure while maintaining global financial flexibility.
It’s particularly relevant if:
- You plan to live and work in Spain for a limited number of years
- You have foreign income or assets that you’d prefer not to declare or manage under Spanish tax laws
- You want to rent a quality home first to explore the region before deciding to buy
Ready to Explore Life in Marbella?
Whether you’re relocating for a few years or considering a more permanent move, Elliott James can help you navigate your options — from quality long-term rentals to buying a primary or secondary home.
Our local expertise, discreet guidance and carefully selected portfolio will support you at every stage of the journey.
Considering a move? Let’s talk.