The Beckham Law, designed to attract expatriate professionals and investors to Spain, underwent significant updates in 2023. In addition to reducing the residency requirement from 10 to 5 years, shareholders and directors of Spanish companies can now benefit from this special tax regime, even if they hold a majority stake or are the sole shareholders, as long as the company is not classified as a patrimonial entity (focused primarily on managing assets or investments). Another key change is that, as of December 2023, digital nomads with employment contracts from foreign companies are also eligible for the Beckham Law.
Below are answers to the most common questions regarding how the Beckham Law can benefit you.
Frequently Asked Questions about the Beckham Law
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Does the Beckham Law apply to self-employed workers?
In general, the Beckham Law does not apply to self-employed workers. This tax regime is intended for employees with contracts from Spanish companies or those transferred by multinational corporations, as well as shareholders and directors of companies. Self-employed professionals usually need to explore other tax solutions, as the Beckham Law does not cover this category.
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What types of visas allow access to the Beckham Law?
The Beckham Law primarily applies to foreigners who move to Spain for work, either through a local employment contract or an international transfer. Shareholders and directors of Spanish companies may also qualify, as long as the company is not patrimonial. Furthermore, as of the 2023 updates, digital nomads with employment contracts from foreign companies are eligible to benefit from the Beckham Law, making Spain an attractive destination for remote workers.
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Does the Beckham Law apply to digital nomads?
Yes, as of December 2023, digital nomads with employment contracts from foreign companies can apply for the Beckham Law. This means that remote workers who provide services to companies outside Spain but reside in the country can benefit from the reduced tax rates offered by this regime. This change is part of Spain’s effort to attract international talent.
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From what income level does the Beckham Law become advantageous?
The Beckham Law offers a fixed tax rate of 24% on income up to €600,000 annually, and 47% for income above that threshold. For individuals earning more than €60,000 per year, this regime can be particularly advantageous. However, the exact tax benefit should be assessed based on each person’s specific financial situation.
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What is the deadline and process for applying to the Beckham Law?
The application must be submitted within 6 months of moving to Spain and starting professional activities. The process involves completing Form 149 and submitting it to the Spanish Tax Agency, along with documentation proving the relocation and fiscal situation. It’s highly recommended to seek specialized legal assistance to ensure the application is completed correctly and within the legal deadlines.
Our firm is ready to assist you in evaluating your eligibility for the Beckham Law and guiding you through the entire application process, ensuring you maximize the tax benefits. Contact us for a personalized consultation.