Spain offers foreign professionals a special tax regime known as the “Beckham Law.” It allows individuals relocating to Spain for work to temporarily reduce their tax burden.

Instead of the standard progressive tax rates (which can go up to 47%), participants in this regime pay a flat 24% on income up to €600,000.

But there’s a catch: after 6 years, these benefits expire — and the tax rates can rise significantly.

Let’s take a closer look at who truly benefits from this regime, and who might fall into a financial trap.

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How the “Beckham Law” Works

This tax regime is designed for professionals moving to Spain for work. For the first 6 years, participants enjoy:

✔ 24% tax on income up to €600,000
✔ No tax on worldwide income
✔ No wealth tax

But after that, things change:

❌ Up to 47% tax on income
❌ Tax on global assets
❌ Potential additional tax liabilities

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Who Can Apply?

✅ Foreigners with an employment contract in a Spanish company
✅ Self-employed professionals (if certain conditions are met)
✅ Managers transferred to Spain within a corporate structure

You will not be eligible if:

❌ You have lived in Spain within the last 5 years
❌ You work remotely without a contract with a Spanish legal entity
❌ Your income is below €60,000/year (standard taxation may be more beneficial)

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Key Risks

1️⃣ Sharp increase in taxes after 6 years
Once the preferential period ends, you become a regular tax resident in Spain, and your tax burden may rise significantly.

2️⃣ Not suitable for remote workers
If you work for a foreign company without a Spanish contract, you are not eligible for this regime.

3️⃣ May not benefit those with medium income
If your annual income is under €60,000, the standard tax system might actually be more favorable.

4️⃣ Bureaucracy & strict deadlines
You must apply within 6 months of starting work in Spain. Any mistakes or delays in paperwork can result in losing the opportunity to apply.

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When Is It Actually Worth It?

✔ If your income exceeds €100,000 per year
✔ If you are employed by a Spanish company
✔ If you have a clear plan to leave Spain before the 6-year mark

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Should You Apply?

The Beckham Law can offer significant tax savings for high-earning professionals, but it’s not suitable for middle-income workers, remote employees, or those planning to stay in Spain long-term.

Before applying, it’s essential to calculate not only the short-term benefits but also the long-term tax implications.