Beckham Law Calculator
What is the Beckham Law?
The Beckham Law is a special tax regime in Spain designed for foreign workers. Officially known as the Special Expats Tax Regime (SETR), it allows eligible expatriates to be taxed at a flat rate of 24% on their Spanish income instead of the progressive rates that can go up to 47%.
This regime was initially introduced in 2005 and got its popular name after footballer David Beckham, one of the first high-profile beneficiaries. While it has changed over the years, it remains a highly attractive option for expats moving to Spain for work.
Who can apply for the Beckham Law?
To qualify for the Beckham Law, you must meet specific requirements:
- You must not have been a tax resident in Spain for the past five years.
- You must relocate to Spain for work under an employment contract with a Spanish company or due to an assignment from a foreign employer.
- You cannot earn income through self-employment (autónomo status).
- Your work must be the primary reason for moving to Spain.
The regime applies for six years (the year of arrival plus five more years). After that, you’ll be taxed as a regular Spanish resident.
How the Beckham Law calculator works
A Beckham Law calculator helps you estimate how much tax you would pay under this regime compared to the standard tax system. It considers:
- Your annual salary
- The 24% flat tax rate (up to €600,000 of income)
- Progressive tax rates for those earning above €600,000
- Deductions and exemptions that may apply
Example of Beckham Law calculation
Let’s say you earn €100,000 per year in Spain.
- Under the standard Spanish tax system, you’d pay around €32,000 in taxes due to progressive rates.
- Under the Beckham Law, you’d pay €24,000 (24% of €100,000).
That’s a €8,000 tax saving per year!
Now, imagine earning €200,000 per year:
- Standard tax system: €82,000 in taxes
- Beckham Law: €48,000 in taxes
Savings: €34,000 per year
A Beckham Law calculator automates these calculations, giving you an instant estimate of your potential savings.
Advantages and disadvantages of the Beckham Law
Benefits
- Lower tax rate – Pay 24% instead of progressive tax rates up to 47%.
- No worldwide income taxation – Only your Spanish income is taxed (not global income).
- Ideal for high earners – The higher your salary, the more you save.
Limitations
- No self-employment option – You must be an employee.
- Limited duration – Only lasts six years.
- No deductions – You can’t claim standard resident deductions.
Is the Beckham Law worth it for you?
If you’re moving to Spain for work and earning over €60,000 per year, the Beckham Law can offer significant tax savings. However, if you have other sources of global income, being taxed as a regular resident might be more beneficial in the long run.
Frequently asked questions about the Beckham Law
How long does the Beckham Law apply?
The Beckham Law applies for six years: the year you become a tax resident in Spain and the following five years.
Can freelancers or self-employed individuals apply?
No, the Beckham Law is only available for employees hired by a Spanish company or transferred from abroad. Freelancers (autónomos) are not eligible.
Does the Beckham Law tax global income?
No. Under the Beckham Law, you are only taxed on income earned in Spain. Foreign income is generally not subject to Spanish taxes.
Is there a maximum income limit under this regime?
Yes. The 24% flat rate applies up to €600,000 of Spanish income. Income above this threshold is taxed at 47%.
Can I apply after moving to Spain?
Yes, but you must apply within six months from the start of your employment contract in Spain. Missing this deadline means losing eligibility.
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Understanding the Beckham Law can significantly impact your financial planning when moving to Spain. If you're unsure whether you qualify or need help calculating your potential tax savings, SpainTax is here to assist you.
Our experts specialize in helping expats navigate Spain's tax system with ease. Contact us today for personalized advice and discover how much you could save under the Beckham Law.
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