Beckham Law Explained: How High-Earning Expats Can Save Over €120k in Spanish Taxes

Discover how the Beckham Law lets high-earning expats in Spain save over €120k per year with a flat 24% tax rate. Eligibility, benefits, and examples explained.

Introduction

If you’re a high-earning professional considering a move to Spain, there’s a special tax regime that could save you a fortune: the Beckham Law. Named after the famous footballer who benefited from it in the early 2000s, this law allows eligible foreign workers to pay a flat 24% income tax on Spanish-sourced earnings instead of the usual progressive rates that can exceed 50%.

For someone earning €1 million a year, this could mean over €120,000 in tax savings annually. In this article, we’ll explain who qualifies, how it works, and why it’s one of the most attractive tax incentives for expats moving to Spain.

1. What is the Beckham Law?

The Beckham Law is Spain’s special tax regime for foreign workers designed to attract skilled professionals, executives, and athletes to the country. Introduced in the early 2000s, it allows eligible newcomers to Spain to be taxed at a flat 24% rate on Spanish-sourced employment income for up to six years.

Why it’s called the Beckham Law:
David Beckham famously used this tax incentive when he joined Real Madrid, which brought international attention to the scheme.

Primary benefits:

• Lower tax burden on Spanish income
• Simplified flat-rate taxation
• Incentive for highly skilled foreign professionals

2. Who is Eligible?

To qualify for the Beckham Law, you must meet several conditions:

• New Spanish tax resident – You cannot have been a Spanish tax resident in the previous 10 years.
• Employment in Spain – You must work for a Spanish company or be posted to Spain by a foreign employer.
• Application window – You must opt into the regime within six months of starting your job.
• Employment income – The regime generally applies to employees, not self-employed professionals.

Important: Always verify eligibility with a Spanish tax expert, as rules and thresholds change over time.

3. How the Beckham Law Works

Under normal Spanish taxation, income tax is progressive, with top rates around 47–50% in 2025.

Beckham Law:

• Flat 24% tax on income up to €600,000
• 47% on income above €600,000
• Applies for 6 years (year of arrival + five more)
• Only Spanish-sourced employment income qualifies

Example Calculation – €1 Million Salary

Annual Savings: 122,900

Key takeaway: For high earners, especially those with salaries above €300,000, the Beckham Law delivers substantial savings.

4. Benefits of the Beckham Law

• Significantly lower tax rate – Keep more of your salary.
• Simplicity – Flat 24% rate is easier to plan for than progressive taxation.
• Attracts top talent – High-earning executives, athletes, and professionals can relocate to Spain with financial advantages.
• Financial planning – Predictable tax rates allow for long-term wealth management.

Pro tip: Consider using your tax savings for property investment in Spain to grow your financial portfolio while enjoying the Spanish lifestyle.

5. Who Benefits the Most?

• Professional athletes and footballers – Huge salaries mean maximum savings.
• High-earning executives relocating to Spain.
• Skilled researchers and professionals with competitive international salaries.

Professional expats often combine these savings with smart real estate decisions to maximize long-term financial gains.

6. Limitations and Considerations

• Only employment income is covered; investment or global income may be taxed differently.
• Must apply and meet criteria; it’s not automatic.
• After 6 years, normal tax rates apply, so long-term planning is essential.
• Eligibility and thresholds can change, so always consult a tax professional.

7. Real-Life Savings Example 

These savings make it an ideal time to explore lifestyle perks in Spain, including choosing the perfect home or investment property.

8. Conclusion

The Beckham Law is a powerful incentive for high-earning expats moving to Spain, providing predictable, flat-rate taxation on Spanish-sourced employment income. For those earning high salaries, it can mean over €120,000 in annual tax savings, making Spain one of the most attractive destinations for skilled professionals, executives, and athletes.

Next Steps:

• Check eligibility with a Spanish tax expert
• Plan your move and salary structure
• Explore additional benefits like property investment and lifestyle perks in Spain

Investing in Spanish property while benefiting from the Beckham Law is a smart strategy for high-earning expats. With predictable tax savings and the ability to keep more of your income, property investment becomes not just a lifestyle choice but a strategic financial decision. Lisa Frain Real Estate specializes in helping expats find the perfect homes and investment opportunities in Spain, guiding clients through every step of the process—from identifying ideal locations to maximizing long-term value. By working with Lisa Frain, you can make the most of your Beckham Law benefits while securing a property that enhances both your financial portfolio and your life in Spain.