The Beckham Law 2026: How to Legally Reduce Taxes When Moving to Spain

Spain is rightfully considered one of the most attractive countries in Europe for living, working, and doing business. Its mild climate, high-quality healthcare system, safety, and well-developed infrastructure make it especially appealing to foreigners. However, when relocating to Spain, many individuals face a serious deterrent — the tax system. Taxes in Spain for foreigners can be significantly higher than in most other jurisdictions, while the approach of the Spanish tax authorities is known for its rigidity and strict formalism.

The Spanish tax system is based on the principle of worldwide taxation. This means that Spanish tax residents are required to declare and pay tax on all their income and assets worldwide, regardless of the country in which they are earned or located. The combined personal income tax rate may reach up to 47 percent, and in certain cases taxpayers are also required to report foreign assets, bank accounts, and shareholdings. In practice, this often leads to situations where individuals receiving income outside Spain are forced to pay additional tax up to the Spanish level, even when double taxation treaties are in place.

It was precisely to address this issue that a special tax regime, commonly known as the Beckham Law, was introduced into Spanish legislation. The regime derives its informal name from the famous footballer David Beckham, who, in the early 2000s, faced an extremely high tax burden after signing a contract with Real Madrid. Under the standard rules, he would have been required to pay Spanish taxes not only on his employment income but also on all his assets and income held outside Spain. As a result of legal discussions involving his advisors and the Spanish authorities, a model was developed that allowed foreign professionals to be taxed in Spain as non-residents, despite actually living in the country.

Since then, the Beckham regime has undergone several changes, but its core concept has remained intact. In 2026, the Beckham Law continues to apply and remains one of the key tax planning instruments for individuals relocating to Spain. Its essence lies in the fact that a foreign professional, provided that the statutory conditions are met, pays Spanish taxes exclusively on income sourced within Spain. Foreign income and assets located outside Spain are not subject to Spanish taxation and are not included in tax reporting for the duration of the regime.

The application of the Beckham regime allows taxpayers to benefit from a fixed income tax rate of 24 percent on income of up to EUR 600,000 per year, which is significantly lower than the standard progressive tax scale. Income exceeding this threshold is taxed at a higher rate; however, even in such cases, the overall tax burden is often substantially lower than under ordinary Spanish tax residency. An additional advantage is the absence of an obligation to declare foreign assets, which reduces both administrative complexity and tax-related risks.

At present, the Beckham Law regime is available not only to salaried employees but also to entrepreneurs, directors of Spanish companies, highly qualified professionals, and digital nomads. The expansion of eligible categories is the result of recent reforms and reflects Spain’s intention to attract international talent and investment. It is important to note that a key requirement remains that the applicant must not have been a Spanish tax resident during the five years preceding relocation, and that the legal basis for residence and work in Spain must be properly established.

For foreigners planning to move to Spain in 2026, the Beckham Law may become a decisive factor in assessing the financial feasibility of relocation. When applied correctly, it allows for a legal reduction of the tax burden by several times, preservation of foreign income sources, and avoidance of complex reporting obligations related to worldwide assets. At the same time, practice shows that errors in the application process, incorrect qualification of income, or failure to meet statutory deadlines often lead to refusal of the regime and subsequent tax reassessments by the authorities.

The lawyers at ProSpain Consulting support clients at all stages of applying the Beckham regime, from the initial analysis of tax status to comprehensive assistance throughout the entire period of its application. An individual approach and careful consideration of each client’s specific circumstances allow not only for the correct use of the special tax regime but also for the development of a sustainable tax strategy when relocating to Spain.

The Beckham Law 2026 is neither an exception to the rules nor a temporary loophole, but a lawful and effective instrument for tax optimization in Spain for foreigners. With proper legal support, it makes it possible to combine a comfortable life in Spain with a predictable and reasonable tax burden.