Job Advice and Coworking

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

12 Aug 2024

Aticco Lab
In the dynamic world of coworking, international mobility and attracting 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 considering Spain as their next professional destination.

What is the Beckham Law?

The Beckham Law, officially known as the Tax Regime for Expatriate Workers in Spain, is a 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 relocate to Spain to work, thus encouraging foreign investment and economic development.

Who Can Apply 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 Residency: You cannot have been a tax resident in Spain for the last 10 years.
  • Hiring: You must be employed by a Spanish company or a branch in Spain of a foreign company.
  • Occupational Activities: The law is intended for professionals engaged in highly skilled 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 Act offers a number of significant tax advantages that can have a positive impact on your financial situation:

1. Reduced Taxation

Eligible professionals may elect 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. Foreign Income Tax Exemption

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

3. Advantages in the Taxation of Welfare 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 to Beckham Law?

If you meet the above requirements and are interested in benefiting from this law, follow these steps: 1. Registration with Social Security: You must register with the Social Security in Spain within the first 6 months after you start working for the Spanish company that hired you. Submission of the Application: Communicate your intention to apply the Beckham Law to the Spanish Tax Agency using form 149. Be sure to 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 a move 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, feel free to contact us - we're here to help you make the most of your experience in a flexible and vibrant work environment!

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