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DPLL Legal & Tax is a boutique based in Spain specialised in the Beckham Law, recognized as Social Collaborator by the Spanish Tax Authority and registered at Barcelona’s Bar Association.
Frequently Asked Questions
The Beckham Law allows foreigners who move to Spain can pay a flat tax of 24% on their Spanish earnings rather than a progressive tax on their worldwide income, which can be as high as 45%. It’s known as the Beckham law after a famous British sportsman, David Beckham, who was one of the first people to benefit from it.
People who want to live and work in Spain can pay income and wealth taxes as if they were non-residents for the first six years, thanks to this law.
Currently, Spain has placed some restrictions on the Beckham Law, making it available only to certain new residents. To qualify, you need to move to Spain under one of the following circumstances:
- You are getting hired as an employee with a Spanish company.
- Your current employer is sending you on an international assignment to a Spanish subsidiary/branch.
- You are becoming a director of a Spanish company.
For remote employees of foreign companies, self-employed individuals and entrepreneurs, we are still waiting for details from Spanish authorities about the Beckham Law for these employment types. We are unable to assist you until the related regulations and application forms are released.
Being a foreigner in Spain and keeping your taxes in order is not always easy to do.
Our Lawyers and Tax advisors provide services to both individuals and societies.
Whether you reside in Spain or you live elsewhere but have legal needs in connection to Spain, we are the trusted and experienced partners that can help you avoid the hard work and assist you.
Beyond income tax breaks, there are also advantages for capital gains and dividends. Real estate assets are only taxed if they are Spanish properties, so this protects your international property portfolio. However, there is a 1.8% wealth tax on your net worth for assets that are worth more than €3 million.
Dividends outside of Spain are not taxed compared to those within Spain that are taxed at between 19% and 26% annually. However, you may have to pay capital gains tax in the country where the assets are held or were sold.
The main benefit is that the person only pays tax on their Spanish income, which is capped at 24% up to €600,000 annually. If the income is higher than this threshold, then it is taxed at a flat rate of 45%.
There is no impact if you spend more than 183 days a year in the country as you will be taxed at under the rules that apply to non-residents.
You are effectively a non-resident for tax purposes.
The Beckham Law is a special tax regime for individuals who come to Spain if they have a job offer in Spain. Whether it’s for a new company or being relocated by their existing foreign employer. Those who qualify for the Beckham Law are taxed at a much lower rate than Spanish citizens. You can even apply for it if you are appointed as a company director and own fewer than 25% of the company’s shares. indulgence one own you inquietude sympathize.
1. You have not been a Spanish Tax Resident for the last ten years. This is the main requirement for all applicants.
2. You’re moving to Spanish territory because you:
- Have a new employment contract.
- Are relocating with your current overseas employer to a Spanish subsidiary or branch.
- Are being appointed director of a company. You will own, directly or indirectly, fewer than 25% of the company’s shares.
3. That you are not working as a freelancer and earning an income actively.
However, it is possible to earn an income from overseas work from a foreign country if that work is less than 15% of your total income.
You have six months to submit the application, starting from the day you were registered with the Spanish Social Security as an employee, to apply for the visa.
You must complete Form 149 and file it with the Spanish tax agency. This application process also requires your:
- Social Security number
- Passport and NIE number
- An employment contract
Once it’s approved, you can benefit from advantageous tax rates for six years. However, you must file a tax return each year as part of the arrangement.
As a general rule, this process usually takes between one and two months.
