Tax system for workers relocated to spanish territory – Beckham law

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Jordi Rovira Esteve

Do you plan to relocate to Spain for work? Is your company planning to relocate teams to a third country?

If so, it will clearly be very useful to know the Spanish tax system applicable to workers who relocate to Spain, usually called the “Beckham Law”.

By applying the “Beckham Law”, your company can benefit from a sizeable advantage in its taxes or in the taxes of your workers relocated to Spain. In fact, depending on the Spanish region where the relocation will be made, the tax cut can be up to 50%.

Can any person relocating to Spain for work be subject to the “Beckham Law”?

No. Only those who were not tax resident in Spain in the 10 years before settling in Spain are subject, and provided that the relocation is due to an employment contract with an employer in Spain or if the employer relocates you to Spain with a letter ordering the relocation. Likewise, if you become a director at a Spanish company and do not have a stake in it or your stake is less than 25%, the “Beckham Law” is also applicable.

What tax savings will I obtain if this tax system can be applied?

You will only be taxed in Spain for the income obtained in Spanish territory, including, in any case, the salary income obtained in any territory. For example, if the salary income obtained during the year is equal to 250,000 euros, you will be taxed in Spain between 45% and 48%, depending on the region; however, by applying the special tax system, you will be taxed only 24%.

Therefore, it is obvious that applying this tax system can be very important.

The tax department of AGM Abogados has extensive experience in this area and will be happy to provide you with further information about this note if you so desire. Contact us.

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