Known as the “Beckham Law” after football player David Beckham, the special tax regime for expatriates in Spain is one of the most attractive incentives offered by the country. However, there are certain requirements that should be taken into account by foreign individuals seeking to make use of it.
The Beckham law, officially called the Regimen especial para trabajadores desplazados a territorio Espaol or SETR (Spanish: “Regime especial de impatriados”), was introduced in 2004 and is based on modification of Article 93 of the Personal Income Tax Act. This new regulation allows those who acquire their tax residence in Spain to opt for non-residential treatment during the first six years of residence and not be subject to progressive rates that can reach up to 45%.
To qualify for this regime, foreigners must have relocated to Spain for work purposes and signed a contract with a Spanish company. They must also have a valid employment visa and have equity in no more than 25% of a company operating within the country. The person must not have been a resident of Spain during the previous 10 years and must have earned income outside Spain, excluding the capital gains acquired in Spain. It is important to note that wealth tax will still be levied on the assets owned in Spain, as this is a general rule of the country that does not benefit from double taxation treaties with other countries.
It is essential that anyone looking to take advantage of the Beckham law enlists the assistance of a qualified lawyer to ensure they meet all of the requirements. The experts at Deel can help. We are a global workforce mobility specialist that handles everything from visas and applications to immigration support for international hires and relocation. Our team has extensive experience with Beckham laws and can offer the guidance and advice you need to successfully relocate to Spain.
Contact us to learn more about our services. We are a leading firm in the area of relocating talent for foreign companies and our team is composed of highly-qualified Spanish lawyers and English-speaking professionals with a broad range of expertise. We can help you with the entire process of relocating your employees to Spain, whether they are interested in using the Beckham law or not. We can assist you with every step of the process, including drafting contracts, registering with local authorities and completing any necessary paperwork. For more information, contact us today by phone or fill out our online form. We look forward to hearing from you! Our team will be happy to discuss your needs. beckham law spain