The special regime for workers moving to Spain, known as the Beckham law, lets eligible people who become Spanish tax residents pay tax as if they were non-residents for a limited period. For many international hires it makes a significant difference to net pay, so HR should know the basics even though the decision belongs to the employee and their tax adviser.
Who can apply. People who have not been tax residents in Spain in the previous five years and move to Spain for work: a new employment contract, a transfer ordered by the employer, becoming a company director in certain cases, or as a qualified entrepreneur or remote worker under the 2022 startups law. Spouses and children can also benefit under certain conditions.
How long it lasts. The year of the move and the following five tax years.
What it means in practice. Employment income is taxed at a flat rate up to a threshold, with a higher rate above it, and most income earned outside Spain is not taxed in Spain.
The deadline HR must not miss. The option is exercised with form 149 within six months of the start of the activity in Spain, usually counted from the Social Security registration. If the deadline is missed, the regime is lost.
What HR coordinates. The start date and Social Security registration, a letter from the employer confirming the move, payroll withholding at the special rate and communication with the tax adviser.
Our role. We do not give tax advice. We make sure the dates, documents and the employee's arrival are aligned so the adviser can file on time.
This guide is for general information and does not replace professional tax advice.