Lawyer, Family Office
Concept
Key distinction from standard Spanish tax residency: dividends, interest, capital gains and rental income from assets outside Spain are NOT subject to Spanish income tax. Modelo 720 (foreign asset declaration) must be filed, but the sanctions regime is limited by CJEU decision C-788/19 of January 27, 2022 to standard penalties under Spanish tax code.
The regime was introduced in 2004 by Real Decreto 687/2005 to attract professional athletes and executives of international companies — David Beckham was the first high-profile user, hence the name. The Startups Law 28/2022 reform extended the regime to self-employed (autónomos), researchers, executives of entrepreneurial companies and holders of Spanish Digital Nomad Visa (D8).
Advantages
Tax rate on foreign passive income:
- 0% on dividends, loan interest, royalties and income from sale of shares (regardless of amount).
Tax rate on employment income:
- 24% up to €600,000 per year;
- 47% above €600,000.
Social contributions:
- for 2024 minimum €230, maximum €542;
- for 2025 minimum €200, maximum €590.
Social contributions are calculated based on the taxpayer's age, type of activity and income level.
In Spain the maximum social contributions are €14,000 per year. Social contributions may be paid in the country of the employer (e.g. in Russia).
Disadvantages
- no entitlement to tax deductions
- double tax treaties do not apply (withholding tax at source may arise)
Conditions
- director of an active company in Spain (or passive company with ownership below 25%)
- Digital Nomad working for a foreign company under contract
N.B.: Digital Nomads working as self-employed ("autónomo") do not fall under the Beckham Law (art. 93.1. Reglamento IRPF).
- startup entrepreneur ("Start-Up empresas emergentes"), in accordance with Article 70 of Law Ley 14/2013, de 27 de Septiembre, de Apoyo a Los Emprendedores y su Internacionalización.
N.B.: mandatory requirement — informe from ENISA (art. 93.b.3 IRPF);
- family members of a person to whom the Beckham Law applies (Art. 93.3 LIRPF as amended by Ley 28/2022).
The Beckham Law may be used by the taxpayer's spouse and children under 25 years of age (in case of disability without age limitation). If not married, then if there is a common child.
The income of the spouse and/or children must not exceed the income of the primary applicant.
However: the Beckham Law cannot be used by persons who held Spanish tax residency during the preceding 5 years. Also cannot claim the special regime those who receive income from a permanent establishment located in Spain.
Reasons for rejection
- Non-compliance with the non-residency condition for the previous 5 years;
- Not belonging to a group to which the regime may apply;
- Failure to meet the application deadline (6 months).
For persons who obtained Spanish tax residency in 2023, a transitional period is established under which the deadline runs from the date the new tax form for filing the application appeared, i.e. from 15/12/2023.
For spouses and/or children the deadline runs from the moment of arrival in Spain.
Switching to Beckham Law
To begin using the Beckham Law, one must first complete Form 030 to register as a tax resident and obtain a tax identification number (NIE). Then notify the Spanish tax agency of the intention to apply the special tax regime by completing an application on Form 149.
The following documents must also be included with the form:
- Passport and tax ID
- Social security number
- Employment contract (this document does not require indication of work address in Spain (centro de trabajo), unlike the document for seconded workers).
Each year, from April to June, persons subject to the Beckham Law must file an income tax return using Form 151.
Frequently asked questions
What is the tax rate under the Beckham Law in 2026?
24% on employment income up to €600,000 per year and 47% on excess. Passive income from sources outside Spain (dividends, interest, capital gains, rental income) is taxed at 0% for 6 tax periods from the moment the regime is applied.
Is passive income taxed under the Beckham Law?
Passive income from sources outside Spain (foreign-source passive income) is not subject to Spanish personal income tax under the Beckham regime. Income from sources in Spain (Spanish dividends, interest in Spanish banks, rental income from Spanish real estate) is taxed under standard Renta del Ahorro rules: 19% up to €6,000, 21% up to €50,000, 23% up to €200,000, 28% above €300,000.
What is Modelo 149?
Modelo 149 — the official Agencia Tributaria form for applying for the special tax regime under Art. 93 LIRPF (Beckham Law). Filed within 6 months from the date of obtaining NIE or commencing Spanish employment activity. Processed within 10 business days. After approval, annual returns are filed using form Modelo 151.
Is the Beckham Law compatible with Spain's Digital Nomad Visa?
Yes, since the Startups Law 28/2022 reform (effective January 1, 2023) holders of Digital Nomad Visa (D8) automatically have the right to apply the Beckham regime. The combination provides a 24% rate on employment income and 0% on foreign passive income for 6 years.
How many years does the Beckham regime last?
The regime lasts 6 tax periods: the year of initial application plus 5 subsequent years. After expiration the resident automatically switches to standard IRPF without the right to reapply for the regime.
Must Modelo 720 be filed under the Beckham regime?
Modelo 720 — declaration of foreign assets worth over €50,000 in each category (bank accounts, securities, real estate). Spanish residents, including Beckham residents, are required to file. Draconian penalties for non-filing were abolished by Court of Justice of the European Union decision C-788/19 of January 27, 2022 as disproportionate. Standard penalties under Ley General Tributaria apply.
Who can apply the Beckham Law in 2026?
Persons who were not tax residents of Spain during the 5 preceding years, provided: employment under Spanish contract, self-employed status (from 2023), company director position, ownership stake in innovative startup, digital nomad status with D8 visa, or researcher / qualified professional.
What documents are needed for application?
NIE (Número de Identidad de Extranjero), Modelo 149, employment contract or confirmation of self-employed status, certificate of absence of Spanish tax residency for the last 5 years (from previous jurisdiction), registration at residential address (empadronamiento), Modelo 030.
CFC implications for Beckham beneficiary
Beckham Law (Art. 93 LIRPF) excludes foreign-source passive income from Spanish tax base for 6 tax periods. Direct consequence — Russian, Spanish and any other CFC regime is switched off for the beneficiary with respect to income covered by Beckham and not linked to Spanish source.
Spanish CFC rules — Art. 100 LIS (for corporations) and Art. 91 LIRPF (for individuals). Under Beckham an individual is taxed only on Spanish-source income at 24% / 47%, foreign-source attribution does not arise. Russian residency — separate issue: 183 days in any rolling 12-month window in Russia switches residency (Art. 207 Tax Code); cessation switches off Chapter 3.4 Tax Code from date of termination.
Beckham + Digital Nomad Visa — canonical structure for Russian HNWI exiting Russian CFC with a horizon up to 6 years in EU. Long-term (15 years+) — transition to Italy €200k forfait or Singapore/UAE.
Full review of all CFC regimes and residency strategies — in the CFC master guide.