New Tax Benefits for Assignees Under Spain’s Expanded Beckham law

The Spanish government has announced significant changes to the 'Beckham Law', set to take effect from 2024.

Spain's Beckham Law for Expatriates

Named after the famous footballer David Beckham, the ‘Beckham Law’ is officially known as the ‘Special Tax Regime for Expatriates’. Introduced in December 2003 through Royal Decree 1008/2023, the law aimed to attract foreign talent by offering tax benefits to non-residents taking up employment in Spain.

Enhanced Tax Benefits: Revisions to the Beckham Law

The Beckham Law has always been popular for its tax advantages. Beneficiaries pay tax only on their income earned within Spain, at a flat rate of 24% for the first €600,000, and 47% thereafter. This compares favourably with the standard Spanish tax rates, which can be as high as 47% even for incomes below €600,000.

Under the revised law, these benefits are set to become even more attractive. Beneficiaries can now apply these reduced tax rates for six years, up from the previous limit of five years. This extended period could potentially result in significant tax savings.

In addition, the non-residence period before applying has been drastically reduced from 10 years to 5, offering more flexibility.

For taxpayers who acquired residency due to relocation in 2023, a deadline of 6 months from 16 December of the year of their relocation has been set for them to benefit from the special tax regime.


New Categories Included in Spain’s Beckham Law

The Beckham Law's New Categories
In an encouraging move, the revised Beckham Law will now also apply to immediate family members (spouses and children) of beneficiaries, which is likely to encourage long-term relocation to Spain.

Other now eligible groups include freelancers and remote workers. This change simplifies the process for these workers, making Spain a more attractive destination for global talent.


Looking Ahead: Spain’s Commitment to International Talent

Following Spain’s introduction of the EU’s Blue Card visa last year, the changes to the Beckham Law are another clear signal of the country’s commitment to attracting international talent, giving Spanish employers access to a larger pool of highly skilled labour.

As we move further into 2024, both employers and employees will need to stay informed about these changes to maximize the potential benefits.

Relocating your employees to Spain? Contact AGS Relocation for expert assistance.

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