beckham law spain

Are you planning to move to Spain to work? When it comes to saving money, the Spanish Beckham Law system creates amazing opportunities. In this article, we are going to give you some tips to save tax in Spain.

Under the Beckham Law Spain, An ex-pat can give tax on income they earn in Spain only. However, they don’t need to give tax on income which is earned from other countries.

According to Spanish Non-Resident Tax rules, the ex-pat should be entitled to a flat 24% tax rate up to 600,000€, instead of the progressive tax scale rates which apply to Spanish citizens.

How to Apply Beckham Law Spain To Save Taxes

If you have citizenship in Spain, you will be entitled to a progressive tax ranging from 19% to 42%. It will depend on the income earned in Spain as per Beckham law Spain.

Who can apply for the Beckham Law Spain?

Generally, as a foreigner, the person can apply:

  • Wealthy ex-pats who hold positions or management
  • The person who just moved to this country
  • Directors who come to work for an organization

On the contrary, the below-mentioned foreigners are excluded from this special tax:

  • Entity directors
  • Self-employed Professionals
  • Sport athletes

What are the Requirements for Beckham Tax Rule?

  • You should not be a resident of this country for the past ten years.
  • As an administrator, you could not hold above 24% of the company
  • As a foreigner, your job contract must be signed with a Spanish company.
  • Who should make the application within six months of commencing the job contract?

How can you apply for this special law?

If you want to benefit from this special law, you should intimate the tax agency by sending model 149. Apart from this, you may need to include:

  • Job contract
  • Your NIE number and passport
  • Social security number

After this, you can get benefit from this special tax rule for six years.

Tax reductions under this special law

It is to be noted that you don’t only get benefits on income tax, but also few applications can assist you in analyzing your taxes further.

You can also get help from solicitors in Malaga who can speak English.

Donations & Inheritance tax

This special is applicable only on non-resident tax for foreigners; it transfers to the donations and inheritance tax as if the person was a resident in Spain.

Property tax

Under this Beckham Law, this type of tax applies to properties that are in this country. So, the tax of three million will amount to around 1.79%.

Capital gains

Profits and Dividend gains come into the possession of through the sale of movable and immovable properties will be charged at 19%.

However, it would be best to keep in mind that capital gains that come into the possession of outside Spain should still be paid to that corresponding country according to their tax rules.

If you want to know more about the Beckham law system, you can visit any professional advisor who can suggest taxes paid in Spain.

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