Beckham Law: Rates, Duration, and Income Cap
Tax rates under the Beckham Law (Régimen Especial para Trabajadores Desplazados, RETD): Spanish employment and professional income up to €600,000: flat 24% income tax rate (IRPF). Spanish income above €600,000: 47% (not 24%). Capital gains (dividends, interest, capital gains): taxed at standard savings income rates: 19% (€0–€6,000), 21% (€6,000–€50,000), 23% (€50,000–€200,000), 27% (€200,000–€300,000), 28% (above €300,000). Foreign income: not taxed in Spain under RETD — the beneficiary is treated as a non-resident for foreign income purposes. Foreign assets: must still be declared under the Spanish wealth disclosure rules (Modelo 720 / Modelo 721 for cryptoassets). Duration: the year of Spanish tax residency establishment plus the next 5 calendar years = 6 tax years maximum. If you arrive in March 2025 (2025 tax year is year 1): years 1–6 are 2025, 2026, 2027, 2028, 2029, 2030. After year 6: standard Spanish progressive IRPF rates apply (19%–47%), and Spain taxes worldwide income. Social security: the Beckham Law does NOT affect Spanish social security obligations — standard employee and employer contributions apply.
2023 Startup Act: Who Qualifies Now?
Before the 2023 Startup Act reform, the Beckham Law was primarily limited to employees relocating to Spain on an employment contract with a Spanish company. After the Startup Act (effective 2023): (1) Employees of foreign companies working remotely from Spain: individuals who move to Spain but continue to work for a non-Spanish employer can now qualify, provided they were not Spanish tax residents in the prior 5 years and their work involves technology, science, or innovation. (2) Entrepreneurs and self-employed professionals: individuals carrying out economic activities in Spain can qualify if their activity is classified as entrepreneurial, innovative, or of special economic interest to Spain. Assessment: a favourable report from Spain's national innovation agency (ENISA or equivalent) may be required. (3) Highly qualified professionals: individuals who are engaged by an entity (directly or through an agency) to provide professional services to companies or their groups that are already resident in Spain can qualify. (4) Remote workers (Digital Nomad Visa): from 2023, Spain introduced a specific Digital Nomad Visa — holders are eligible for Beckham Law benefits. (5) Family members: spouse and children under 25 (or disabled dependents) can also apply for the regime if they move with the qualifying primary applicant, subject to the same non-residency condition.
Application Process: Form 149 and Timing
Application form: Modelo 149 (Comunicación para el ejercicio de la opción por el Régimen Especial de Tributación Aplicable a Trabajadores Desplazados a Territorio Español). Submission: to the Spanish Agencia Tributaria (AEAT). Deadline: within 6 months of the date of registration with the Spanish Social Security system or, if no social security registration is required, within 6 months of the start of activity in Spain. Missing the deadline: if you miss the 6-month window, you cannot apply for the Beckham Law for that entry into Spain. This is a hard deadline — late applications are not accepted. Required documentation: employment contract or proof of business activity; certificate from the prior employer (for employee transfers) or documentation of qualifying activity; proof of non-residence in Spain for the prior 5 years; passport; Spanish NIE (Número de Identificación de Extranjero). Processing time: the AEAT typically issues a resolution within 10 business days. Until the resolution is issued, Spanish employers should withhold at the Beckham Law rate (24%) pending formal approval — get the certificate promptly. Annual filing: Beckham Law beneficiaries file the simplified annual IRPF return (Modelo 151 — non-resident simplified return) rather than the standard Modelo 100.
Modelo 720 / Modelo 721: Foreign Asset Reporting
Although Beckham Law beneficiaries are treated as non-residents for foreign income purposes, they remain Spanish tax residents for reporting purposes and are subject to key Spanish reporting obligations. Modelo 720 (Declaración informativa sobre bienes y derechos situados en el extranjero): an annual declaration of foreign assets — bank accounts, securities, real estate held abroad. Required if any category of foreign assets exceeds €50,000. Failure to file: historically carried catastrophic penalties (the Spanish Constitutional Court struck down the disproportionate penalties in 2023; current penalties are more proportionate but still significant). Beckham Law beneficiaries and Modelo 720: debate exists — some argue RETD beneficiaries are 'tax residents' for 720 purposes; Spanish authority position is that 720 applies. File 720 to be safe. Modelo 721 (Cryptoassets): from 2024, a new form requiring declaration of foreign cryptoasset holdings. File if foreign crypto holdings exceed €50,000. Wealth tax (Impuesto sobre el Patrimonio): Beckham Law beneficiaries pay wealth tax only on Spanish-sited assets, not worldwide assets (non-resident treatment for wealth tax purposes). Madrid residents: Madrid has a 100% wealth tax rebate — no net wealth tax for Madrid residents under any regime. This is one reason Madrid is particularly attractive vs Barcelona (which has no such rebate).
Beckham Law vs Portugal IFICI: Head-to-Head Comparison
Spain Beckham Law vs Portugal IFICI — which is better for a high-income tech worker? Rate: Spain 24% (up to €600,000) vs Portugal 20%. Winner: Portugal by 4 percentage points. Duration: Spain 6 years vs Portugal 10 years. Winner: Portugal. Eligibility: both now include tech workers and remote workers; Spain's 2023 reform broadened eligibility; Portugal's IFICI has specific sector requirements. Foreign income: both exempt qualifying foreign income from local taxation. Family members: Spain explicitly includes spouse and children; Portugal IFICI is individual-based. Social security: both charge standard social security on local income. Capital gains: Spain at 19%–28% (standard savings rates) vs Portugal at 28% (or 50% inclusion for real estate gains). Winner: Spain. Pension income: Spain standard treatment (no specific pension exemption); Portugal 10% flat rate on foreign pensions. Winner: Portugal for retirees. Cost of living: Portugal (Lisbon) cheaper than Madrid/Barcelona. Winner: Portugal. Language: both have accessible Latin-language learning curves for English speakers. Startup ecosystem: Spain has a deeper startup ecosystem (Barcelona, Madrid tech hubs); Portugal (Lisbon/Porto) is competitive but smaller. Practical recommendation: for a 6-year horizon with €400,000+ income: Spain and Portugal are similar in total tax cost. For a 10-year horizon: Portugal's longer IFICI window provides more certainty. For entrepreneurs with equity events: Spain's 24% on gains up to €600,000 can be very attractive.