Complete Guide to Understanding the Beckham Law and its Tax Benefits in Spain

In the dynamic world of coworking, international mobility and the attraction of global talent are essential for growth and innovation. At Aticco, we understand that the success of our members and partners also depends on the tax opportunities they can take advantage of. In this article, with the help of our partners at Entre Trámites, we tell you how the Beckham Law can be a great advantage for international professionals who are considering Spain as their next professional destination.

What is the Beckham Law?

The Beckham Law, officially known as the Special Tax Regime for Inpatriate Workers in Spain, is legislation that seeks to attract highly qualified professionals from outside the European Union (EU) and the European Economic Area (EEA). Implemented in 2005, this law provides a favorable tax regime for those who move to Spain to work, thus promoting foreign investment and economic development.

Who Can Apply for the Beckham Law?

To benefit from this law, you must meet certain requirements. Here is a clear summary:

• Citizenship: You must be a citizen of a country outside the EU or EEA.
• Tax Residence: You must not have been a tax resident in Spain during the last 10 years.
• Hiring: You must be employed by a Spanish company or a branch in Spain of a foreign company.
• Work Activities: The law is intended for professionals who carry out highly qualified or specialized activities. However, it does not apply to self-employed workers, professional athletes, or directors of commercial entities.

Benefits of the Beckham Law

The Beckham Law offers a series of significant tax advantages that can have a positive impact on your financial situation:

1. Reduced Taxation

Eligible professionals can opt to be taxed at a flat rate of 24% on income generated in Spain. This rate is considerably lower compared to the tax rates applied to ordinary tax residents, providing considerable tax relief during the first six years of residence.

2. Exemption from Taxes on Foreign Income

One of the biggest attractions of the Beckham Law is the possibility of being exempt from taxation on income earned outside of Spain. This means that you will only be taxed on income generated within the country, provided that you file the appropriate tax return and meet certain requirements.

3. Advantages in the Taxation of Social Benefits

The law also offers benefits in the taxation of social benefits such as pensions or severance payments, providing greater flexibility and economic advantages.

How to Apply for the Beckham Law?

If you meet the requirements mentioned and are interested in benefiting from this law, follow these steps:

1. Registration with Social Security: You must register with Social Security in Spain within the first 6 months after starting to work for the Spanish company that has hired you.

2. Submission of the Application: Communicate your intention to take advantage of the Beckham Law to the Spanish Tax Agency using form 149. Make sure you prepare and submit the following documents:

• • Passport and NIE (Foreigner Identification Number).
  • Social Security number.
  • Employment contract with a Spanish company.

At Aticco, we know that the tax environment can be a crucial factor for many international professionals considering moving to Spain. The Beckham Law not only simplifies the tax process but also offers significant advantages that can facilitate your transition and success in the Spanish market. If you are thinking about taking the next step in your career and exploring new opportunities in Spain, consider how this law can be a strategic ally in your journey.

For more information about coworking spaces and how Aticco can support your transition to Spain, do not hesitate to contact us. We are here to help you make the most of your experience in a flexible and vibrant work environment!