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09 SEP 2022

The Beckham law


It is a tax regime whose goal is to offer a better taxation for those who relocate their residence to Spain for work motives.
 
This law allows those who move to tax as non-residents, fact that it’s seen reflected in the decrease of the amounts paid in taxes.
 

Which requirements must be fulfilled in order to benefit of the Bekcham law?


 
To benefit from the law, you are required to meet a series of requirements:
  • To not have lived in Spain in the last 10 years.
  • Settle in Spain for work motives, but in one of the following modalities:
  1. Getting a job prior to entering the country.
  2. To be transferred to Spain by a company abroad.
  3. 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?


  • Freelancers.
  • 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?


 
If you meet the requirements previously mention, these are the benefits that the Bekcham law has to offer:
  • 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. 

 

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