Written by Víctor Gisbert, Tax Director at BDO Abogados.
What is the Beckham Law?
The special tax regime for impatriates — popularly known as the Beckham Law — has become a key tool to facilitate the arrival of foreign talent and to enable companies to offer highly competitive international mobility packages.
The impatriate regime allows individuals who transfer their tax residence to Spain to be taxed, during the year of the move and the following five years, as if they were non-residents, while maintaining their status as Personal Income Tax (IRPF) taxpayers. This hybrid formula combines the simplicity of the Non-Resident Income Tax with the fact that they do not cease to be IRPF taxpayers, creating a stable and predictable tax framework for six years.
Although the regime has existed for years, its current framework incorporates improvements that make it especially attractive for profiles that are essential in today’s global economy: international executives, tech specialists, startup founders, and especially digital nomads.
Advantages of the Beckham Law
Applicable tax rate
Employment and economic activity income is taxed in Spain at a flat rate of 24% up to 600,000 euros, and 47% on the excess. For executives, senior profiles, or professionals with high variable compensation, this fixed rate can represent considerable savings compared to the ordinary progressive taxation.
Capital gains and foreign income
Other income earned abroad is not subject to taxation in Spain. For professionals with international investments, global bonuses, shares in foreign companies, or diversified income, this feature is especially relevant.
Wealth Tax
Only wealth located in Spain is taxed. Wealth held abroad is excluded from the Spanish Wealth Tax.
Starting in 2026, the Region of Valencia has approved an improvement to the Wealth Tax that increases the exempt minimum and reduces the effective tax burden for taxpayers with assets located in Spain. For those who use the impatriate regime, this reform has an especially positive impact, because they are only taxed on assets located in Spain and, from 2026 onwards, that taxation will be even lower.
Valencia thus becomes one of the most competitive cities for professionals and companies with economic capacity seeking to attract international talent.
Who can benefit from this law? Requirements
Before addressing which profiles may benefit, it is important to understand the requirements that must be met in all cases. These requirements constitute the essential conditions for accessing the regime and must be verified beforehand.
- Not having been a tax resident in Spain in the past five years.
The period has been reduced from ten to five tax years prior to relocation to Spain during which the taxpayer must not have been a tax resident, significantly easing access to the regime. - The relocation must be due to an objective professional reason.
The regulation requires that the “objective cause” of moving to Spain be the start of an employment relationship, a requirement considered fulfilled if it coincides in time with the arrival in the country. Personal motives — family, cultural, philanthropic, or others — do not affect this valuation, as they are the “subjective motive.” In short, the “cause” of the relocation should not be confused with its “motive.” - The option must be exercised within the deadline.
The maximum period to apply for the special regime is six months from the start date of the activity registered with Spanish Social Security or in documents that allow, where applicable, the maintenance of the original Social Security legislation. - Not obtaining income through a permanent establishment in Spain (except for entrepreneurs and qualified professionals, who have an explicit exception).
Profiles that can apply the regime
Digital nomads
The regulation recognizes that workers who relocate to Spain to work remotely can apply this tax regime.
Company directors
Company directors may also choose this special regime, regardless of their shareholding percentage, provided the company is not considered an “asset-holding entity” under Article 5.2 of Law 27/2014 on Corporate Income Tax.
Entrepreneurs
The economic activity carried out by the taxpayer is considered “entrepreneurial” when it is innovative and/or has special economic interest for Spain, supported by a report issued by ENISA. A residence permit for entrepreneurial activity is required before moving to Spain. For EU citizens, who do not require a residence permit, only the ENISA report is required prior to the relocation.
Highly qualified professionals
This refers to foreign professionals who are graduates or postgraduates from universities or business schools, holders of technical or higher vocational qualifications, or specialists with at least 3 years of professional experience, or who can prove at least five years of knowledge and skills equivalent to such a qualification.
Family
Children under twenty-five (or of any age if disabled) may benefit from the special regime, as may the spouse.
How to apply for the Beckham Law?
The impatriate regime is technical and full of nuances. For companies transferring talent to Valencia, working with a specialized firm like BDO Spain provides:
- Detailed analysis of each case
- Design of international mobility policies
- Tax optimization for key employees
- Legal certainty in documentation and deadlines
- Comprehensive support for setting up teams in Valencia
The maximum period to apply for the special regime is six months from the date the activity begins.
The option must be submitted to the Spanish Tax Agency using Form 149 within the established deadline.
Once the regime is granted, the taxpayer must file Form 151 annually.
In a regime where every detail matters, the risk of doing it incorrectly can cost thousands of euros.
Incentive: Improvement of the Wealth Tax in Valencia
Beginning in 2026, the Region of Valencia has approved an improvement to the Wealth Tax that increases the exempt minimum and reduces the effective tax burden for taxpayers with assets located in Spain. For those under the impatriate regime, this reform is especially beneficial because they are only taxed on assets located in Spain, and from 2026 onwards, this taxation will be even lower.
This makes Valencia one of the most competitive cities in Spain for economically strong professionals and companies seeking to attract high-level international talent.
Beckham Law calculator: a practical example
| Concept | Gross annual salary | Withholding under impatriate regime (Beckham Law) | Annual savings |
|---|---|---|---|
| International professional relocates to Valencia | €100,000 | 24% = €24,000 | €8,000–€12,000 (€48,000–€72,000 over six years) |
| International professional relocates to Valencia | €80,000 | 24% = €19,200 | €8,000–€10,000 (48,000 – 60,000 over six years) |
| International professional relocates to Valencia (without applying the Beckham Law) | €100,000 | 33–38% = €33,000–€38,000 withholding | No savings |
For a company seeking to attract international talent, this difference can be decisive in closing a hiring process. And for a professional comparing European cities, it can tip the balance toward Valencia.
Conclusion: Valencia, a strategic destination
Valencia has become one of the most attractive cities in Europe for business operations, launching new projects, attracting international talent, and consolidating technological initiatives. Its combination of quality of life, connectivity, innovative ecosystem, and competitive costs places it on the radar of multinationals, scaleups, and global professionals seeking a stable, dynamic, and internationally oriented environment.
The impatriate regime represents one of Spain’s strongest fiscal tools to attract international talent. With the formal inclusion of digital nomads and the improvement to the Wealth Tax effective from 2026, Valencia consolidates itself as an exceptional destination for multinationals, scaleups, and highly qualified professionals.
The tax savings can be very significant, but the regime requires rigor, planning, and strict compliance with the requirements. Therefore, having specialized tax advice from the beginning is essential to maximize the benefit and avoid risks.
If you would like to receive more information and advice, please do not hesitate to contact Invest in Valencia.
Frequently Asked Questions about the Beckham Law (FAQs)
What are the main requirements?
Not having been a tax resident in Spain in the last five years, relocating for an objective professional reason, exercising the option within six months, and not obtaining income through a permanent establishment in Spain (with exceptions).
How long can it be applied?
During the year of the move and the following five tax periods.
Is foreign wealth taxed?
No. Only wealth located in Spain is taxed.
