WHAT IS IT?
The Beckham Law (Régimen Especial para Trabajadores Desplazados) was created specifically for expats who move to Spain for work, and gives them the option of paying tax as non-residents. The key of this special regime is that when you are taxed as a non-resident, you will most likely end up paying lower tax rates and will only be taxed on income generated in Spain.
Normally, when you become a tax resident in Spain, your income is subject to Spanish Personal Income Tax (Impuesto sobre la Renta de las Personas Físicas). Therefore, you are taxed in the same way as any other resident in Spain.
The main advantage of the Beckham Law is that the general tax base (e.g. employment income, rents), is taxed at an almost fixed rate where the first €600,000 of income is taxed at 24% and the excess is taxed at 45%.
HOW CAN I APPLY?
Prerequisite: Before starting your application, you must be registered in the Spanish Census of Liable Taxpayers (Censo de obligados tributarios). In order to register in the Spanish taxpayers’ registry, you must file a Modelo 030 form.
In order to apply for this special regime, it is necessary to submit an application to the Spanish Tax Agency (Agencia Tributaria). Bear in mind that you must submit the application within 6 months of starting your employment in Spain. This is absolutely crucial, as after that six-month window, you will no longer be able to apply. The application must consist of a completed copy of the official Modelo 149 form.
Other documents required include:
- Your passport and NIE number
- Social security number
- Job contract
Please note that the application can only be submitted online, which means that you will also need an electronic certificate (Certificado Digital) in order to prove your identity.
Once the tax authorities have received your application, they will review it to make sure that all requirements have been met. They then have 10 working days to either authorise or reject your application.
From then on, you will be able to benefit from this rule for a total of 6 years. However, you must formalise your non-resident tax declarations every year by completing the Modelo 151 form.