What is Spain's Beckham Law?
Formally known as the Régimen Especial de Trabajadores Desplazados (RETD), the Beckham Law is a special tax regime in Spain that allows qualifying new residents to pay a flat 24% income tax rate on Spanish-source income up to €600,000/year — instead of the standard progressive rates that can reach 47%.
The law earned its nickname when footballer David Beckham used it upon moving to Real Madrid in 2003.
Who Qualifies in 2025?
To apply for the Beckham Law, you must:
- Not have been a Spanish tax resident in the previous 5 years
- Move to Spain for work — either as an employee, company director, or entrepreneur/startup founder (extended under Law 28/2022)
- Apply within 6 months of starting work in Spain or registering as a tax resident
New in 2022: Expanded Eligibility
Since the Startup Law (Law 28/2022), the special regime now also applies to:
- Digital nomads who move to Spain for remote work
- Highly qualified professionals
- Startup founders and entrepreneurs
Tax Rates Under Beckham Law vs Standard Rates
| Income Range | Beckham Law Rate | Standard IRPF Rate |
|---|---|---|
| Up to €600,000 | 24% | 19%–47% (progressive) |
| Over €600,000 | 47% | 47% |
Example Savings
If you earn €80,000/year, under the standard IRPF you'd pay approximately €28,000 in taxes. Under Beckham Law, you'd pay approximately €19,200 — a saving of nearly €9,000/year.
How to Apply: Step by Step
Step 1: Obtain Your NIE
Before anything else, register with the Spanish Tax Agency (Agencia Tributaria) using Form 030.
Step 2: File Form 149
Form 149 is the official application to opt into the special regime. This must be filed within 6 months of the start of your activity in Spain — do not miss this deadline.
Step 3: File Annually with Form 151
Once approved, you file your annual tax return using Form 151 (instead of the standard Form 100).
What Income is Covered?
- Employment income from Spanish sources
- Director fees (with some limitations)
- Business income for digital nomads and entrepreneurs
- Capital gains from Spanish assets
Note: Worldwide income is NOT taxed under this regime. Only Spanish-source income is subject to the 24% rate.
Duration
The Beckham Law applies for the year of arrival plus 5 subsequent tax years — a total of up to 6 years of the preferential tax treatment.
Common Pitfalls
- Missing the 6-month deadline to file Form 149 — this is the most common and costly mistake
- Previous Spanish tax residency — even a short stint in Spain within the last 5 years disqualifies you
- Not maintaining qualifying activity — if you stop working in Spain, the regime may be revoked
Is it Worth It?
For most expats earning over €40,000/year who qualify, the Beckham Law represents significant tax savings. However, the decision should be made with a qualified tax advisor who understands your full financial picture, including assets, investments, and future plans.