To qualify for Spain's Beckham Law, you must be a foreign worker (not a Spanish tax resident for the last 5 years) moving to Spain for an employment contract or as a digital nomad, not receiving income from a permanent establishment abroad, and apply within 6 months of starting work, with the law covering a 6-year period. Recent updates also allow highly-qualified entrepreneurs, startup professionals, and even company directors (under certain conditions) to apply, though sports professionals are now excluded.
FAQs about the Beckham Rule:
Any individual who moves to Spain for professional reasons and has not been tax resident in Spain during the five previous tax years may apply. This includes employees, remote workers, directors, and certain entrepreneurs. Qualifying income is taxed at a flat rate of 24% up to €600,000.
To apply for the Beckham Law, you must notify the Spanish tax authorities within six months of starting your employment in Spain. The process involves submitting Form 151, along with supporting documentation such as your employment contract and proof of relocation.
While Spain does offer some exemptions on capital gains tax (CGT) for the sale of a main residence, there are strict conditions:
Who is liable for the Wealth Tax return in Spain? As we mentioned in the previous section, both residents and non-residents are liable for the wealth tax. Nevertheless, that will only happen if their total assets are worth more than a certain amount, as there are some allowances.
Spanish tax residents are taxed on their worldwide income, while non-residents are only taxed on Spain-sourced income. For retirees, this often includes pensions, investment income, rental income from property in Spain, or US Social Security received while residing in Spain.
For qualifying U.S. expats, Spain's Beckham Law offers something rare in international tax: simplicity and savings. A flat 24% tax rate on Spanish income—and no Spanish tax on your global earnings—can mean thousands saved over six years. But making it work means understanding more than just Spanish tax law.
Capital gains tax in Spain over 65 years
If you are 65 years old or over, it does not matter if the amount of money you get from selling the property will be reinvested into your new home or not. You won't need to pay this tax.
It allowed sellers to claim CGT exemption for the final 36 months of ownership, even if they had moved out. However, this was reduced to 18 months in 2014 and further to 9 months in 2020, which remains the rule today. This general law is in place as it prevents short-term transaction benefits concerning taxation.
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One of the main disadvantages of opting for the Beckham Law is that certain exemptions and deductions available under the general regime of the Personal Income Tax (IRPF) do not apply. Firstly, taxpayers under the Beckham Law cannot benefit from the exemptions of Article 7 of the IRPF Law.
The biggest tax mistakes people make include filing late, math errors, incorrect personal info (like Social Security numbers), forgetting deductions/credits (like EITC), misreporting income, not signing forms, and making errors with bank details for direct deposit, all leading to delays, penalties, or missed savings, with using tax software or professionals helping avoid these common pitfalls.
Spain's Beckham Law offers a unique tax break for foreign professionals moving to Spain. If you qualify, you can pay a flat 24% tax rate on Spanish-sourced income—rather than Spain's standard progressive rates that reach as high as 47%.
Yes, Spain applies a capital gains tax to the profit made from the sale or transfer of assets, such as real estate, shares, or other investments. Both residents and non-residents are subject to this tax when they sell a property or other capital asset located in Spain.
The full 50% CGT discount is generally not available to foreign and temporary residents for assets acquired after 8 May 2012. However, an apportioned discount may be available if you had a period of Australian residency before you became a foreign resident.
What's Spain's 100% Tax All About? The proposed 100% property tax means that non-EU buyers, including British nationals, would need to pay a tax equal to the property's purchase price. So, let's say you choose to purchase a villa costing €200,000, you will need to pay an extra €200,000 in taxes.
However, you may qualify to exclude your foreign earnings from income up to an amount that is adjusted annually for inflation ($107,600 for 2020, $108,700 for 2021, $112,000 for 2022, and $120,000 for 2023). In addition, you can exclude or deduct certain foreign housing amounts.
If you use your former home to produce income (for example, you rent it out or make it available for rent), you can choose to treat it as your main residence for up to 6 years after you stop living in it. This is sometimes called the '6-year rule'. You can choose when to stop the period covered by your choice.
US retirees who qualify as Spanish tax residents are subject to Spanish taxes on their worldwide income. Retirement income is subject to general tax rates, which range from 19% to 47% for tax year 2024 (the taxes you file in 2025).
What tax do you pay if you sell a property in Spain? When selling a property in Spain, Plusvalia Municipal and Capital Gains Tax are a tax that you'll need to pay. This is usually a percentage of the sale ranging from 19-24%, or calculated by the local authority based on other criteria.
How Can People Over 65 Reduce Their Capital Gains Taxes?
A 'good' gross salary in Spain is generally between €35,000 and €45,000 per year, depending on lifestyle and location. In cities such as Madrid or Barcelona, a net monthly income of around €2,500-€3,000 (which would require a gross annual salary of €40,000-€50,000) is considered comfortable for a single person.
There is a social security agreement in force between Spain and the person's home country that allows for this possibility. The employment relationship with the home country employer is maintained and the person continues to pay social security contributions to their home country social security system.
Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign earned income exclusions and/or foreign income tax credits.