The Beckham Law (Special Tax Regime for Displaced Workers) allows qualifying individuals to pay a flat tax rate on their worldwide income.

• Flat tax rate of 24% on income up to €600,000
• Rate of 47% on income above €600,000
• Valid for the year of relocation and following 5 tax years
• Significant savings compared to progressive tax rates

To qualify for the Beckham Law tax regime, you must meet these criteria:

• Not have been a Spanish tax resident in the last 5 years
• Move to Spain due to either an employment contract or company directorship
• Perform work for a Spanish company or entity
• Not earn more than 15% of income from investment vehicles

Steps to apply for the Beckham Law tax regime:

• File Form 149 within 6 months of starting work in Spain
• Submit employment contract and supporting documentation
• Receive tax authority decision within 10 working days
• File annual tax returns using Form 151

Key advantages of the Beckham Law tax regime:

• Lower tax rate than standard progressive rates (up to 47%)
• Only Spanish-source income is taxed during the regime
• No worldwide asset reporting requirement
• Potential savings on wealth tax

Key points to consider before applying:

• Choice is binding for the entire regime period
• Cannot be combined with other tax benefits
• May affect taxation in your home country
• Professional tax advice recommended

Understanding the timeline and duration:

• Applies for first tax year and following 5 years
• No possibility of extension beyond 6 years
• Annual tax returns required
• Can be terminated if requirements no longer met