The Spanish tax landscape has undergone a significant transformation with the recent amendments to the special regime for posted workers, better known as the Beckham Law. Are you wondering how this tax scheme can benefit you if you are an international professional considering relocating to Spain? In 2025, this regime remains one of the most attractive tools for drawing foreign talent, offering substantial tax advantages that can translate into savings of up to 50% of your overall tax burden.
What Is the Beckham Law in Spain?
Definition and Conceptual Framework
The Beckham Law is a special tax regime set out in Article 93 of Law 35/2006 on Personal Income Tax (IRPF). It allows certain workers, professionals, entrepreneurs and investors who relocate to Spain to be taxed under the rules of the Non-Resident Income Tax (IRNR) while simultaneously retaining their status as IRPF taxpayers.
Why the Name “Beckham Law”?
The nickname dates back to 2005, when the famous footballer David Beckham moved to Real Madrid and became one of the first high-profile beneficiaries of the regime. The popular moniker has persisted ever since, although the official label is the “special regime applicable to workers posted to Spanish territory.”
Historical Evolution and Regulatory Amendments
Chronological Development of the Beckham Law: Key Amendments (2005 – 2025)
The regime has undergone three major reforms since its inception. The most recent and substantial change came with Law 28/2022 of 21 December on the promotion of the start-up ecosystem, which took effect on 1 January 2023 and significantly broadened the regime’s scope of application.
Updated Legal and Regulatory Framework
Core Legal Basis
The Beckham Law rests on two fundamental pillars:
- Law 35/2006 of 28 November (IRPF) — specifically Article 93, which lays down the conditions and requirements for applying the special regime. This provision has been amended several times, most recently by Law 28/2022.
- Royal Legislative Decree 5/2004 of 5 March, approving the consolidated text of the Non-Resident Income Tax Law, which governs the technical aspects of taxation for regime beneficiaries.
Amendments Introduced by Law 28/2022
The 2023 reform modernised the regime in two decisive ways:
- Reduction of the prior non-resident period from 10 to 5 years, allowing many more professionals — including returning Spaniards — to qualify upon their return.
- Expansion of the list of eligible profiles to include digital nomads, entrepreneurs and highly qualified professionals, aligning the rules with today’s global labour market.
Beneficiaries of the Inbound Regime in 2025
Employees
Employees form the traditional core of beneficiaries. They may opt in if they start an employment relationship with a Spanish employer or if an overseas employer posts them to Spain under an official assignment letter.
Digital Nomads and Remote Workers
One of the most noteworthy innovations of the 2023 reform is the explicit inclusion of international teleworkers. The regime now expressly covers workers who provide services remotely using telematic means, especially those holding Spain’s international remote-work visa.
Company Directors
Directors can benefit provided they meet certain shareholding conditions. If the company is classed as a passive-asset entity, the director’s stake must not exceed 25%. No such limit applies to operating companies.
Entrepreneurs and Start-Ups
Entrepreneurs who carry out an “entrepreneurial activity” in Spain may join the regime. This status requires a favourable report from ENISA confirming the activity’s innovative nature and economic interest for Spain.
Highly Qualified Professionals
Professionals rendering services to start-ups or engaging in training, research, development or innovation may qualify, provided these services account for more than 40% of their total income.
Fundamental Requirements for Opting In
Prior Non-Residency Requirement
The strictest rule is not having been a Spanish tax resident during the five tax years preceding the move. This applies equally to foreigners and returning Spaniards.
Tax residence determination: Under Article 9 IRPF, an individual is resident if they spend more than 183 days in Spain during the calendar year or if the main centre of their activities or economic interests is located in Spain.
Conditions of Relocation
The move to Spain must result from one of the situations expressly provided in the regulations: an employment contract, appointment as a director, entrepreneurial activities or highly qualified professional services.
Permanent Establishment Limitation
Beneficiaries may not obtain income through a Spanish permanent establishment, except in specific cases involving entrepreneurial activities or services to start-ups. If such income arises, the taxpayer is immediately excluded from the regime.
Tax Advantages of the Beckham Regime
Flat Tax Rate of 24%
The headline benefit is a flat 24% rate on income up to EUR 600,000, with 47% applied to any excess. By contrast, standard IRPF progressive rates reach 47% on income above EUR 300,000.
Limitation to Spanish-Source Income
Beneficiaries are taxed only on Spanish-source income, except for employment income and entrepreneurial business income, which are taxed regardless of where they arise. Other foreign-source income is exempt in Spain.
Wealth Tax Exemption
Throughout the regime period, beneficiaries are exempt from the Wealth Tax on their worldwide assets. Given that regional Wealth Tax rates can reach 3.75%, the exemption can generate substantial savings for high-net-worth individuals.
Simplified Compliance
Regime users are not required to file Form 720 for declaring assets abroad. This significantly lightens administrative burdens and reduces compliance risks.
Recent Case Law and Binding Rulings
Judgments on Contractual Simulation
The recent High Court of Justice of Madrid Judgment 123/2025 clarified the concept of simulation under the inbound regime. The court confirmed that using fictitious employment contracts to gain access amounts to absolute simulation, upholding the Tax Agency’s adjustments.
In the case, two Venezuelan nationals set up a shell company with no real activity to justify sham contracts. The court supported the tax authority’s reassessment, stating that contractual simulation bars entry to the regime and triggers severe penalties.
DGT Binding Rulings 2024 – 2025
- Ruling V0009-24 clarified that workers who set up a company and later assume a directorship can retain the special regime after ending their employment relationship, provided the Article 93 IRPF criteria remain satisfied.
- Ruling CV2248-24 addressed loss of the regime upon becoming self-employed, holding that income obtained through a permanent establishment results in immediate exclusion for that same tax year.
Controversial Issues and Tax Risks
Risk of Contractual Simulation
Recent case law shows that the Tax Agency is intensifying scrutiny of potential simulations. Taxpayers must ensure employment contracts reflect genuine activities and that the companies involved conduct real business.
International Comparisons
Spain is not alone in offering preferential regimes to attract international talent. Portugal maintained its Non-Habitual Resident (NHR) regime with a 20% rate until 2024. Italy grants a 50% income reduction for new residents, and the Netherlands applies the “30% ruling,” exempting 30% of income. The European trend is moving toward nationality-based criteria and stricter anti-avoidance rules, mirroring Spain’s recent changes.
Conclusions and Recommendations
The Beckham Law remains a highly competitive instrument for attracting international talent to Spain. The 2023 amendments have modernised the regime, adapting it to new realities such as remote work and digital entrepreneurship.
Nevertheless, recent jurisprudence shows that the tax authorities are tightening control over potential abuses. Prospective beneficiaries must ensure full compliance with the requirements and avoid structures that might be construed as simulation or tax evasion.
To maximise benefits, specialised advice is essential. Given the regime’s complexity and the ever-evolving administrative doctrine, ongoing professional follow-up is indispensable.
Frequently Asked Questions (FAQs)
- Can Spanish nationals benefit from the Beckham Law?
Yes. Spaniards may qualify provided they have not been Spanish tax residents during the five years preceding their return. Nationality is irrelevant; prior tax residence is what counts. - What happens if annual income exceeds EUR 600,000?
The portion above EUR 600,000 is taxed at 47%, while the first EUR 600,000 continues at 24%. Exceeding the threshold does not automatically revoke the regime. - How does the regime affect taxation of the principal residence?
According to recent Madrid case law, inbound taxpayers are exempt from the deemed rental income on their principal residence, by analogy with IRPF rules. - Can the regime be lost by frequent travel outside Spain?
No. The regime is not lost merely for travelling abroad. What matters is maintaining Spanish tax residence, determined by spending over 183 days in Spain per year or having Spain as the main centre of interests. - What about investments in foreign funds?
Dividend, interest and capital-gain income from foreign investments is generally exempt in Spain for regime beneficiaries unless earned through a Spanish permanent establishment. However, such income may still be taxable in the source country under its own rules.