One of the regulations that has recently attracted the most attention on the Spanish tax scene is the so-called Beckham Law. This special regulation, named after the famous footballer David Beckham, offers significant tax benefits to certain posted workers who transfer their tax residence to Spain. According to the latest figures, more than 10,000 people benefited from this scheme in 2023, demonstrating its growing popularity.

But what makes the Beckham Law so attractive to foreign freelancers? Essentially, it allows individuals to be taxed under the income tax for non-residents (IRNR) at rates that are more lenient than the general regime. This applies not only to the year in which tax residence is established in Spain, but also for the following five tax years.

In addition, this special regulation excludes the taxation of worldwide income, which simplifies taxation. Capital gains earned abroad are also exempt from taxation in Spain. In the case of wealth tax, only assets located in Spain are taxed, similar to non-resident taxpayers. Furthermore, under the Beckham Law, it is not necessary to submit form 720, which corresponds to the declaration of assets abroad.

The scheme is aimed at qualified professionals, company directors and people who start a business activity in Spain. However, to be eligible for the scheme, they must not have been resident in Spain for tax purposes in the five years prior to the move.

Since 2023, family members of posted workers who move at the same time or later and also fulfil the requirements for prior non-residency can also benefit from the scheme. However, the sum of their taxable income may not exceed that of the main taxpayer during the periods of application of the scheme.

One of the main advantages of the scheme is that it favours so-called digital nomads. For these employees, who can work from anywhere in the world, the Beckham Law is a favourable tax option, especially with the introduction of the teleworking visa, which facilitates their inclusion in this regime.

For those considering the Beckham scheme, it is important to act quickly and with good advice. The Inland Revenue must be informed within a maximum period of six months from the commencement of employment or the date of entry into the country.

Despite the advantages, it is important that any potential candidate weighs up both the advantages and the possible disadvantages of utilising this scheme. When deciding to move tax residence to Spain, not only should the short-term benefits be considered, but also the long-term impact on the personal and professional tax situation.
In summary, the Beckham Law represents a great opportunity for those foreign self-employed workers who meet the established criteria and wish to optimise their tax burden in a new environment. This regulation offers a much more favourable tax landscape, which can be a strong incentive to relocate to Spain. However, as with any tax matter, it is advisable to consult a specialised tax advisor to examine this scheme in detail and determine whether it is feasible and desirable to take advantage of it.