Beckham law: An advantageous tax regime for attracting talent
- 09 September 2022
- Business Consultancy
The Beckham law
Which requirements must be fulfilled in order to benefit of the Bekcham law?
- To not have lived in Spain in the last 10 years.
- Settle in Spain for work motives, but in one of the following modalities:
- Getting a job prior to entering the country.
- To be transferred to Spain by a company abroad.
- To become the manager or administrator of a company of which you don’t have more that a 25% in stock.
- Your work responsibilities and tasks must be done in Spain, and in case these are combined with other countries, they must not be more that 15% of the whole.
- The company you work for must be Spanish.
- You apply for this regime as per 6 months maximum from the moment you’ve been relocated.
In which situations it is not possible to benefit from this regime?
- Professional athletes.
- Directors of companies located in Spain who have more than the 25% of their capital.
Which are the benefits for the Beckham law?
- Reduction in the income tax. As you are considered non-resident, there is only a taxe rate of 24% applied on your gains. (Up to 600.000€).
- Regional taxes are not applied to you when it comes to assets and incomes that you may have outside of Spain.
- You don’t need to pay for the gains that may be obtained from the selling of assets and dividends.
- The gains obtained from the selling of assets in Spain would only be paid with a fix rate of 19%.
- You will not need to make the model 720, which consists of the declaration of assets outside the spanish terrotory with a value of more than 50.000€.
- Application only of the wealth tax on properties that are maintained in Spain, with a tax rate between 0.2% and 2.5%.
At CINC we advise and help you with all of your arrangements, if you have any question, do not hesitate to contact us.