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Benefits and Opportunities of the Beckham Law in Spain

The Beckham Law is a special tax regime that allows individuals considered fiscal residents in Spain to be taxed under the regulations of the Non-Resident Income Tax (IRNR). This means they are only subject to taxation in Spain for their Spanish-sourced income.

Tax Benefits of the Beckham Law

The main tax benefits of the Beckham Law include:

  • IRPF Taxation: Only taxed on income obtained within Spanish territory.

  • Wealth Tax: Taxed only on the net value of assets and rights located in Spain.

  • Large Fortunes Tax: Applicable only if the net value of assets and rights in Spain exceeds 3 million euros.

  • Model 720 Exemption: No need to file the informative declaration of assets and rights located abroad.

  • Regime Extension: Possibility to extend this tax regime to the spouse or economically dependent children of the main applicant.

Who Can Apply for the Beckham Law?

  • Employees: Those relocated to Spain for work reasons with a displacement letter or local contract.

  • Digital Nomads: Employees working for companies outside of Spain.

  • Company Directors: In Spain, even if the director is the sole shareholder, provided certain requirements are met.

  • Entrepreneurs: Professionals engaged in economic activities classified as entrepreneurial activities.

  • Highly Qualified Professionals: Providing services to start-up companies or engaged in training, research, development, and innovation activities.

  • Family Members: Spouse and economically dependent children of the main applicant, meeting certain requirements.

Requirements for Applying for the Beckham Law

  • Fiscal Residency: Not having been a fiscal resident in Spain in the past 5 years.

  • Reason for Relocation: Must be for work or entrepreneurial reasons.

  • Application Deadline: The application must be submitted within 6 months from the date of registration with Spanish Social Security or from the granting of the coverage certificate for Social Security purposes.

  • Permanent Establishment: Not having a permanent establishment in Spain, except in specific cases provided by law.

Process and Duration

  • Processing Time: The processing time is approximately 10 working days.

  • Regime Duration: The special regime lasts for 6 years from the first year of the taxpayer’s fiscal residency.

Advantages for Entrepreneurs

The Beckham Law is particularly beneficial for entrepreneurs looking to establish themselves in Spain. The tax benefits can create a favorable environment for the development of new businesses, allowing entrepreneurs to:

  • Tax Savings: Significantly reduce their tax burden during the initial years of operation.

  • Talent Attraction: Facilitate the hiring of highly qualified professionals, as they can also benefit from the regime.

  • Fiscal Stability: Provide a clear and predictable tax framework during the first six years, which is crucial for business planning and growth.

Service Cost

The service for the approval of the Special Regime for Workers Displaced to Spanish Territory (Beckham Law) includes everything necessary and has various costs and applications according to Entre Trámites, an expert consultancy in these regulations.

The Beckham Law offers an attractive tax regime for displaced workers, entrepreneurs, and qualified professionals who wish to establish themselves in Spain. This regime not only eases the tax burden but also provides the possibility of extending benefits to dependent family members, creating a favorable environment for individuals, families, and new businesses alike.

SC Tax Advisers and Accountants are Partnered with Entretramites Spanish based Accountants

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