Few Spanish tax rules have a more famous namesake: the Beckham Law (officially Régimen especial para trabajadores desplazados) got its nickname from David Beckham, who joined Real Madrid in 2003 and was one of the first celebrities to benefit from the then-new regime. The irony: professional footballers have been excluded since 2010 – but for expats moving to Mallorca for work, the law is more attractive than ever.
What does the Beckham Law give you?
If you successfully opt in, you are taxed like a non-resident for several years – even though you live in Spain. The key benefits:
- A flat 24% income tax on employment income up to 600,000 euros per year (instead of the progressive scale of up to ~47% plus the Balearic regional surcharge). Income above that is taxed at 47%.
- Foreign investment income stays out of Spanish tax: dividends, interest and capital gains from abroad are not taxed in Spain.
- No Modelo 720: the overseas-assets reporting obligation does not apply.
- Wealth tax on Spanish assets only – not on your worldwide wealth.
Who qualifies?
Originally the law only covered employees relocating to Spain with a work contract. Since the 2023 Startup Law reform, the circle is much wider:
- Employees moving to Spain for a new job
- Remote workers and digital nomads working from Spain for a foreign employer
- Directors of Spanish companies (with relaxed shareholding limits)
- Founders of recognised startups and highly qualified professionals in innovation and R&D
- Under certain conditions, spouses and children too
The core requirements: you were not tax resident in Spain during the previous 5 years, and your move is connected to the new activity. Classic self-employed workers (autónomos without a startup connection) and retirees cannot use the regime.
How long does it last?
The year you move plus the five following tax years – up to six years in total. After that, you switch automatically to normal Spanish taxation.
The catch: when it is not worth it
- There are no personal allowances and hardly any deductions – the 24% applies from the first euro. On smaller incomes, normal taxation can be cheaper; the rough break-even is around 50,000–60,000 euros of annual income, depending on your situation.
- Employment income is taxed at 24% worldwide, not just the Spanish part.
- In some constellations Spain will not issue a treaty residence certificate – which can have consequences for income in your home country.
How to apply
You apply with Modelo 149, and it must be filed within 6 months of registering with Spanish social security – this deadline is unforgiving. Your annual tax return is then filed with Modelo 151. You will need your NIE number first anyway.
Bottom line: For well-earning employees and remote workers moving to Mallorca, the Beckham Law is often the single biggest tax lever available – but the 6-month deadline and the fine print forgive no mistakes. Have a local tax advisor run the numbers before you apply.
Note: this article is not tax advice.
More on this topic: Spanish tax for foreigners in Mallorca – the overview.
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