Spain's Beckham Law: 24% Flat Tax for Foreign Workers

Spain's Ley Beckham (Beckham Law) is one of Europe's most valuable tax benefits for foreign workers. It offers a flat 24% income tax rate, significantly lower than Spain's standard progressive IRPF brackets, which range from 19% to 47%.

If you're a foreign professional relocating to Spain, this benefit could save you thousands of euros annually. Here's everything you need to know.

What is the Beckham Law?

The Beckham Law is an optional tax regime for foreign workers newly resident in Spain. Instead of paying Spain's standard progressive income tax (IRPF), you can elect to pay a flat 24% rate on your Spanish-source income.

The name comes from David Beckham, who benefited from a similar flat-rate tax when he joined Real Madrid in 2003.

Who qualifies?

You qualify if you meet ALL of these criteria:

• ✓ Not previously a Spanish tax resident: You have not been a Spanish tax resident in the past 5 years
• ✓ Foreign nationality: You are not a Spanish citizen
• ✓ Salary threshold: Your employment income meets Spain's threshold (varies, but typically €600,000+/year for high-income roles)
• ✓ Employment contract: You have a Spanish employment contract as the primary reason for residency

The exact salary threshold depends on the type of role and negotiation with the Spanish tax office (Agencia Tributaria).

Tax savings compared to standard IRPF

Here's how much you save with the Beckham Law on a €80,000 gross salary:

	Standard IRPF	Beckham Law (24%)	Annual saving
Gross salary	€80,000	€80,000	n/a
Income tax (IRPF)	€19,000	€19,200	n/a
Social Security	€5,080	€5,080	n/a
Net pay	€55,920	€55,720	+€200

Note: At €80,000, the benefit is modest because standard IRPF in that range is competitive. The savings increase dramatically at higher salaries.

Better example: €150,000 salary

	Standard IRPF	Beckham Law (24%)	Annual saving
Gross salary	€150,000	€150,000	n/a
Income tax (IRPF)	€46,500	€36,000	€10,500
Social Security	€9,353	€9,353	n/a
Net pay	€94,147	€104,647	+€10,500

At €150,000, the Beckham Law saves you over €10,000/year, a significant boost to take-home pay.

Duration of the Beckham Law

The benefit is available for 4 calendar years from the date you are first assessed as a Spanish tax resident. After 4 years, you revert to standard IRPF rates.

Many high-earning expats use this window to save significantly, then either negotiate higher salaries or relocate before the benefit expires.

What income is covered?

The 24% flat rate applies to:

• Employment income (salaries, bonuses)
• Income from your primary professional activity

It does NOT cover:

• Investment income (dividends, interest)
• Rental income
• Capital gains
• Income from secondary activities

If you have investment income, that is taxed under standard Spanish rates separately.

How to apply for the Beckham Law

1. Register with Spanish tax office (Agencia Tributaria) when you arrive
2. Contact your employer's HR/legal department; they typically handle the application on your behalf
3. File Form 030 (opt-in for the special regime) with the tax office
4. Get approval; the Agencia Tributaria will issue a ruling confirming your 24% regime

The process typically takes 4–8 weeks. Your employer should be familiar with this; if not, consult a tax advisor (asesor fiscal) specializing in expat taxation.

Key requirements and restrictions

You must maintain Spanish tax residency

You can't benefit from the Beckham Law and also claim non-resident status elsewhere. If you move to another country during the 4-year window, the benefit may be terminated.

No retroactive benefit

The flat rate applies only from the date you file Form 030. Income earned before that date is taxed under standard IRPF rules (if applicable).

Social Security still applies

Employee Social Security (Seguridad Social) contributions of 6.35% still apply. The 24% is income tax only, not a total tax rate.

After the 4-year window

When your Beckham Law benefit expires (after 4 years), you revert to standard IRPF. Your tax bill increases significantly unless your salary increases proportionally.

Strategic options:

• Negotiate a raise with your employer to offset the higher tax rate
• Plan to relocate before the benefit expires
• Explore other tax-efficient strategies with a tax advisor

Beckham Law vs. Netherlands 30% ruling

Both are expat tax benefits, but they work differently:

	Spain Beckham Law	Netherlands 30% Ruling
Structure	Flat 24% income tax	30% tax-free allowance
Duration	4 years	5 years
Salary threshold	~€600,000+	€48,013 (2026)
Social Security	Still applies (6.35%)	Applies, but lower on 70% taxable portion

Neither is necessarily "better"; it depends on your salary level, home country tax obligations, and career plans.

Key takeaways

• The Beckham Law offers a flat 24% income tax rate for foreign workers new to Spain.
• You must not have been a Spanish tax resident in the past 5 years.
• The benefit typically requires a high salary threshold (€600,000+), though exact requirements vary.
• The regime lasts 4 calendar years; after that, you revert to standard IRPF.
• Social Security contributions (6.35%) still apply on top of income tax.
• Plan your strategy before the 4-year window expires.

Use our Spanish salary calculator to compare standard IRPF vs. the Beckham Law benefit at your salary level.