Are you relocating to Spain and interested in taking advantage of the Beckham Law? This special tax regime can provide significant tax benefits for eligible individuals. In this comprehensive guide, we’ll explain the recent changes introduced by the Spanish Start-Up Law (Ley 28/2022) and what they mean for you.
What is the Beckham Law?
The Beckham Law is a nickname for Spain’s special tax regime for expatriates, officially known as the special tax regime for inbound expatriates. Named after footballer David Beckham, who benefited from it during his time at Real Madrid, this law offers favorable tax conditions for foreigners who move to Spain to work. Under this regime, qualifying individuals can opt to pay a flat tax rate on their income from Spanish sources and are subject to a reduced tax rate on their worldwide income.
Recent Enhancements by the Spanish Start-Up Law
On December 22, 2022, the Spanish Parliament approved the Spanish Start-Up Law (SUL), which came into effect on January 1, 2023. This legislation introduced significant enhancements to the Beckham Law, aimed at fostering a better ecosystem for start-ups and skilled professionals moving to Spain.
Key Enhancements:
- Expanded Eligibility: The SUL broadens the criteria for who can benefit from the Beckham Law, making it accessible to more professionals, particularly those involved in start-ups and technology sectors.
- Tax Rate Adjustments: Adjustments to tax rates and the inclusion of new benefits under the SUL can lead to more favorable tax treatment for eligible individuals.
- Application Extensions: The SUL introduces measures to streamline the application process, but some enhancements require further regulatory approval.
Transitional Provisions: Application Deadline
As of December 5, 2023, the Spanish Government clarified the transitional rules through Royal Decree 1008/2023. This decree addresses uncertainties for those who became tax residents in 2022 and 2023. According to the decree:
- Application Deadline: Taxpayers who relocated to Spain in 2022 or 2023 must apply for the Beckham Law regime by June 16, 2024.
Eligibility Criteria
To qualify for the Beckham Law under the new rules, you must:
- Have moved to Spain for employment purposes.
- Not have been a tax resident in Spain for the past ten years before your move.
- Apply within the specified deadline.
Benefits of the Beckham Law
Under the Beckham Law:
- Flat Tax Rate: Pay a flat tax rate of 24% on income up to €600,000 from Spanish sources.
- Reduced Worldwide Tax Rate: Income over €600,000 is taxed at a reduced rate of 47%.
- Limited Wealth Tax: You are only taxed on Spanish assets, not worldwide assets.
Applying for the Beckham Law
Scornik Gerstein LLP has launched The Beckham Law Guide, which answers critical questions about the regime, such as:
- Detailed eligibility criteria
- Step-by-step application process
- Benefits and implications of recent changes
Download The Beckham Law Guide to understand how you can benefit from this favourable tax regime.
Get Started Today
Scornik Gerstein LLP is highly proficient in Beckham Law, with a team of skilled lawyers who excel in this field. If you would like us to assess your circumstances to confirm whether you can apply for the Bechkam Law Tax Regime, please email ask@simply.law.
Scornik Gerstein LLP is a full-service law firm with locations around the globe. They are a multidisciplinary practice with expertise not only in Immigration & Citizenship law, but also in Civil & Commercial, Litigation, Real Estate, Probate, Family, Personal Injury, Medical Negligence, Employment, Taxation, Child Abduction, and Criminal matters.
*(Please ensure that you always consult with a tax professional or advisor before making any decisions related to tax implications.)*
