Beckham Law and the Digital Nomad Visa — What You Need to Know

Spain’s Beckham Law is one of the most attractive tax incentives for people moving to Spain. Named after the footballer who famously benefited from it, this special tax regime can significantly reduce your tax burden during your first years in Spain. For Digital Nomad Visa holders, it’s a potential game-changer.

What Is the Beckham Law?

The Beckham Law (officially the Régimen Especial de Impatriados, or Inbound Expat Tax Regime) allows qualifying new residents in Spain to be taxed as non-residents for up to six years. This means you pay a flat rate of 24% on Spanish-source income up to €600,000, rather than Spain’s standard progressive income tax rates which can reach up to 47%.

Crucially, under this regime you are generally only taxed on Spanish-source income, not your worldwide income. For someone earning a salary from abroad while living in Spain on a DNV, this can mean substantial tax savings.

Can Digital Nomad Visa Holders Use the Beckham Law?

Yes — the Digital Nomad Visa was specifically designed to work alongside the Beckham Law. When the DNV legislation was introduced, it included provisions allowing DNV holders to apply for the special tax regime.

To qualify, you generally need to have not been a Spanish tax resident in the five years prior to moving, and you need to move to Spain for work reasons (which the DNV satisfies). The application is made to the Spanish tax authorities (Agencia Tributaria) after arriving and registering in Spain.

How Much Can You Save?

The savings can be significant. Under standard Spanish tax rules, someone earning €80,000 per year would face a marginal rate of around 37%. Under the Beckham Law, that same income would be taxed at a flat 24% (assuming it’s classified as Spanish-source income). On €80,000, that’s a saving of roughly €10,000 or more per year.

For higher earners, the savings are even more dramatic. And the fact that foreign-source income (such as overseas investments or rental income) is generally not taxed under this regime adds further benefit.

How to Apply for the Beckham Law

The application process involves filing Form 149 with the Agencia Tributaria within six months of registering with Spanish social security. You’ll need your NIE, proof of your employment or self-employment, and evidence that you haven’t been a Spanish tax resident in the previous five years.

The application itself is relatively straightforward, but getting the timing right and ensuring your income classification is correct requires careful planning. A tax advisor experienced with the Beckham Law is strongly recommended.

Want to maximise your tax savings in Spain?

We can connect you with English-speaking tax advisors who specialise in the Beckham Law and DNV taxation.

Important Limitations and Considerations

The Beckham Law isn’t perfect for everyone. You lose access to double taxation treaty benefits, which could mean being taxed twice on certain types of income. Wealth tax and Modelo 720 obligations may still apply. The flat rate only applies for up to six years, after which you’ll move to the standard tax regime.

It’s also worth noting that the rules can change. Tax legislation evolves, and the specific interaction between the DNV and Beckham Law should be confirmed with a professional based on the latest regulations.