Did You Know You Could Save Up to 50% on Your Tax Burden by Moving to Spain?

Did you know that you could save up to 50% on your tax burden by relocating to Spain? The special tax regime for displaced workers, popularly known as the Beckham Law, continues to be one of the most powerful tools for attracting international talent in 2025, offering extraordinary tax advantages that range from paying a fixed 24% to total exemption from Wealth Tax.

What is the Beckham Law in Spain and How Can It Benefit You in 2025?

Complete Definition of the Expatriate Regime

The Beckham Law constitutes a revolutionary special tax regime regulated in Article 93 of Law 35/2006 on Personal Income Tax (IRPF), which allows certain workers, professionals, entrepreneurs, and investors relocated to Spanish territory to pay taxes according to the rules of Non-Resident Income Tax (IRNR), while simultaneously maintaining their status as Personal Income Tax (IRPF) taxpayers.

This exceptional tax system grants the possibility of paying taxes only on income obtained in Spain, applying a fixed rate of 24% for income up to 600,000 euros annually and 47% for the excess, instead of the progressive IRPF rates that can reach up to 54% depending on the autonomous community.

Why is it Called the Beckham Law? History and Origin

Its popular name dates back to 2005, when legendary footballer David Beckham moved to Real Madrid and became one of the first prominent beneficiaries of this regime. Although officially known as the “special regime applicable to workers displaced to Spanish territory,” the Beckham denomination has remained in everyday and media use.

Did you know that professional athletes can no longer benefit from this regime? For years now, they have had their own specific regulations, which demonstrates how this legislation has evolved.

Differences Between Regular IRPF and Beckham Regime

The fundamental difference lies in the territorial scope of taxation. While ordinary tax residents pay taxes on their worldwide income with progressive rates from 19% to 54%, Beckham Law beneficiaries only pay taxes on Spanish-source income (with specific exceptions) applying practically fixed rates.

This distinction can result in extraordinary tax savings, especially for professionals with high incomes and internationally diversified assets.

Latest 2025 Modifications: What Has Changed in the Beckham Law

Reform of Law 28/2022: New Beneficiaries

The entry into force of Law 28/2022, of December 21, on promoting the startup ecosystem on January 1, 2023, introduced revolutionary modifications that have completely modernized the regime. This “Startup Law” significantly expanded the subjective scope of application, including new groups such as digital nomads, innovative entrepreneurs, and highly qualified professionals.

Reduction of Non-Residence Period: From 10 to 5 Years

One of the most impactful modifications is the reduction of the prior non-residence period from 10 to 5 years. This change allows a greater number of professionals, including emigrated Spaniards, to benefit from the regime when returning to the country, significantly facilitating access to the special regime.

Inclusion of Digital Nomads and Remote Workers

The 2023 reform expressly recognizes international remote workers, also called “digital nomads.” Now those who provide services remotely through telematic means can benefit from the regime, especially those who have the international remote work visa.

Who Can Benefit from the Beckham Law in 2025? Complete Beneficiaries

Employees: Requirements and Process

Salaried workers constitute the traditional core of beneficiaries. Those who can access the regime are:

• Those who start an employment relationship with an employer in Spain
• Those displaced by a foreign employer through a displacement letter
• Those who work remotely through computer and telematic systems without specific employer orders

Digital Nomads: New Visa and Tax Benefits

Digital nomads can obtain a specific international remote work visa lasting up to 3 years renewable for an additional 2 years. They must demonstrate minimum income equivalent to 200% of the Minimum Interprofessional Wage (2,646€ monthly in 2025) and work exclusively for foreign companies.

Digital nomads covered by the Beckham Law can benefit from a fixed 24% taxation, significantly lower than regular IRPF which ranges between 40% and 48%.

Entrepreneurs and Startups: Entrepreneurial Activities

Entrepreneurs who develop economic activities classified as “entrepreneurial” can benefit from the regime. This classification requires a favorable report from ENISA (National Innovation Company), which evaluates the innovative character and economic interest of the project for Spain.

Company Administrators: Participation Limitations

Administrators can benefit from the regime under specific conditions:

• In asset-holding entities: maximum participation of 25% of share capital
• In operating entities: no participation limitation
• They must meet the other general requirements of the regime

Highly Qualified Professionals in R&D&i

Professionals who provide services to emerging companies or develop training, research, development, and innovation (R&D&i) activities can benefit, provided these services represent more than 40% of their total income.

Essential Requirements for the Beckham Law: Complete 2025 Checklist

Non-Residence Requirement: The 5 Key Years

The strictest and most exclusionary requirement is not having been a tax resident in Spain during the five tax periods prior to displacement. This condition applies to both foreigners and Spaniards who have resided abroad.

Tax residence is determined according to Article 9 of the IRPF Law: permanence in Spanish territory exceeding 183 days during the calendar year or when the main center of activities or economic interests is located in Spain.

How to Prove Work Displacement

The displacement must occur as a consequence of one of the specifically provided circumstances:

• Employment contracts in Spain
• Acquisition of administrator status
• Development of innovative entrepreneurial activities
• Provision of highly qualified professional services

Avoiding Permanent Establishment: Practical Cases

Beneficiaries cannot obtain income through permanent establishment in Spain, except in specific cases of entrepreneurial activities or services to emerging companies. Obtaining income through permanent establishment leads to immediate exclusion from the regime in the same tax period of non-compliance.

Tax Advantages of the Beckham Law: Real Savings in 2025

24% Taxation vs Progressive IRPF: How Much You Save

The main advantage lies in applying a practically fixed rate of 24% for income up to 600,000 euros and 47% for the excess. Comparatively, standard IRPF applies progressive rates that can reach 47-54% for higher income, depending on the autonomous community.

Practical example: An executive with annual income of 150,000€ would pay 36,000€ with the Beckham Law (24%), compared to approximately 52,500€ with regular IRPF (35% effective), representing savings of 16,500€ annually.

Exemption from Foreign Income: Real Cases

Beneficiaries only pay taxes on income obtained in Spain, with the exception of work income and entrepreneurial activities, which are taxable regardless of their geographical origin. Foreign income such as dividends, interest, or capital gains remain exempt in Spain.

No Wealth Tax: Million-Euro Benefit

During the application of the regime, beneficiaries are exempt from Wealth Tax on their worldwide assets. This exemption can represent significant savings, given that this tax can reach rates of 3.75% in some autonomous communities for high assets.

Liberation from Form 720: Administrative Simplification

Those covered by the regime are not obligated to file Form 720 for declaration of assets abroad. This simplification considerably reduces administrative burden and compliance risks associated with this informational form.

Practical Declaration Cases 2025

Practical case: German executive resident in Madrid with:

• Salary in Spain: 120,000€
• Dividends from Germany: 15,000€ (exempt)
• Apartment rental in Madrid: 18,000€
• Taxable base: 138,000€ (120,000 + 18,000)
• Tax liability: 33,120€ (138,000 × 24%)
• Savings vs regular IRPF: Approximately 15,000€ annually

Recent 2024-2025 Jurisprudence: Key Rulings

TSJM Ruling 123/2025: Contractual Simulation

The Madrid Superior Court of Justice Ruling No. 123/2025 established decisive criteria on simulation in the expatriate regime. The court confirmed that creating fictitious employment contracts to access the regime constitutes absolute simulation, validating Tax Inspection actions.

In the analyzed case, two Venezuelan citizens established a company without real activity to justify simulated employment contracts. The court supported the Tax Authority’s regularization, establishing that contractual simulation prevents regime application and carries penalties for serious infractions.

DGT Consultance V0009-24: Change from Employee to Administrator

DGT Consultation V0009-24 clarified that the special regime can be maintained after ceasing the employment relationship and assuming administrator functions, provided the requirements of Article 93 of the LIRPF are met and there is temporal continuity between both situations.

DGT Consultance CV2248-24: Loss of Regime When Becoming Self-Employed

Consultation CV2248-24 established that obtaining income through permanent establishment leads to immediate exclusion from the regime in the same tax period of non-compliance. This means that registering as self-employed immediately results in losing the right to pay taxes under the Beckham Law.

Risks and Controversial Aspects of the Beckham Law in 2025

Contractual Simulation: How to Avoid Penalties

Recent jurisprudence demonstrates that the Tax Authority intensifies control over possible simulations. Taxpayers must ensure that:

• Employment contracts respond to real activities
• Companies involved develop effective activities
• There is economic substance in the operations performed

Tax Authority Control: New Inspection Actions

Tax authorities have intensified control actions through:

• Verification of the reality of employment relationships
• Analysis of effective business activity
• Verification of requirement compliance throughout the regime’s validity

International Comparison: Spain vs Other Countries

Spain maintains a competitive regime compared to other European countries:

• Portugal: Eliminated its non-habitual resident regime in 2024
• Italy: Offers 50% reductions in income for new residents
• Netherlands: Applies the “30% Ruling” with 30% income exemption

The European trend shows evolution toward more restrictive criteria and greater anti-abuse control, similar to recent Spanish modifications.

Real Practical Cases: 2025 Application Examples

Case 1: Multinational Executive in Madrid

Profile: British financial director, 45 years old, transferred from London
Income: 180,000€ annually + 50,000€ bonus
Assets: London apartment (500,000€), securities portfolio (300,000€)

Beckham Law Benefits:

• Taxation: 230,000€ × 24% = 55,200€
• Regular IRPF would be: approximately 85,000€
• Annual savings: 29,800€
• No taxation on UK apartment and securities

Case 2: Argentine Digital Nomad in Barcelona

Profile: Software developer, 32 years old, US client
Income: 85,000€ annually as freelancer
Visa: Digital nomad visa for 3 years

Beckham Law Benefits:

• Taxation: 85,000€ × 24% = 20,400€
• As regular self-employed: approximately 28,000€
• Annual savings: 7,600€
• Possibility of Spanish nationality after 5 years

Case 3: Startup Entrepreneur in Valencia

Profile: French fintech founder, 38 years old, ENISA certification
Income: 120,000€ from entrepreneurial activity
Assets: French startup participations

Beckham Law Benefits:

• Taxation: 120,000€ × 24% = 28,800€
• Regular IRPF: approximately 42,000€
• Annual savings: 13,200€

Links to BOE and Updated 2025 Regulations

Main regulations:

• Law 35/2006 on IRPF
• Royal Decree 1008/2023
• Law 28/2022 on Startups

Frequently Asked Questions about the Beckham Law 2025

1. Can Spaniards benefit from the Beckham Law when returning to Spain?

Yes, Spanish citizens can benefit from the regime provided they have not been tax residents in Spain during the five years prior to their return. Nationality is not determinant, but prior tax residence. Many emigrated Spaniards take advantage of this opportunity when returning to the country.

2. How much do you really save with the Beckham Law vs normal IRPF?

Savings depend on income level, but can be substantial. For income of 100,000€ annually, approximate savings are 12,000-15,000€ annually. For income exceeding 200,000€, savings can exceed 30,000€ annually. The benefit is greater the higher the income and the more foreign assets owned.

3. What happens if I exceed 600,000 euros of annual income?

Income exceeding 600,000 euros is taxed at 47%, while the first 600,000 euros maintain the 24% rate. There is no automatic loss of the regime for exceeding this threshold. The regime remains advantageous even for very high incomes.

4. Can I lose the Beckham regime if I travel abroad frequently?

No, the regime is not lost due to foreign travel. What matters is maintaining tax residence in Spain, determined by permanence exceeding 183 days annually or the location of the center of economic interests in Spain. Business trips or vacations do not affect the regime as long as Spanish tax residence is maintained.