How Remote Workers and Digital Nomads in Spain Can Benefit from Beckham’s Law

If you’re a remote worker or digital nomad considering a move to Spain, it’s essential to understand how Beckham’s Law and the Digital Nomad Visa can work together. Beckham’s Law is a special tax regime that offers significant income tax savings, making it a sought-after option for digital nomads. Combined with the Digital Nomad Visa, this framework provides an attractive solution for expats looking to enjoy the perks of working remotely in Spain’s sun-soaked, culturally rich environment

This post will explain what the Beckham Law is, how digital nomads can qualify for it, and the steps to take to benefit from this unique tax opportunity. Whether you’re exploring the Digital Nomad Visa or already working remotely in Spain, this guide will help you understand how to make the most of the Beckham Law’s advantages.

What is the Beckham Law?

The Beckham Law, officially known as the special expat tax regime in Spain, attracts foreign talent by offering a flat income tax rate of 24% for earnings up to €600,000 per year (or 47% for earnings exceeding that threshold).

Introduced in 2005 and named after the famous footballer David Beckham—who reportedly used this tax regime when relocating to play for Real Madrid—the law helps make Spain a competitive destination for both professionals and businesses.

Historically, the Beckham Law targeted international executives, professionals, and individuals relocating to Spain under contract with a Spanish company or taking up high-ranking directorial roles with limited company shares. However, as workspaces evolve and the concept of “remote work” gains global traction, the law now includes remote workers (such as digital nomad visa holders).

Key Benefits of the Beckham Law

• Flat Tax Rate: Instead of paying progressive income tax rates of up to 47%, eligible expats benefit from a simplified flat tax rate of 24% on income up to €600,000.
• Worldwide Income Shielding: Expats only pay taxes on earnings derived in Spain, not on their global income.
• Attractiveness for High Earners: By capping the flat rate, high-income earners can achieve significant tax savings compared to Spain’s standard progressive tax system.

How Digital Nomads Now Qualify for the Beckham Law

Until January 2023, digital nomads faced ambiguity regarding their eligibility for the Beckham Law. The criteria primarily revolved around professional relocation, which favored individuals employed by Spanish companies. Remote workers who moved to Spain for personal reasons or worked for employers outside the country did not qualify.

Thankfully, Spain has expanded the eligibility requirements to reflect modern work trends. Digital nomads and remote workers now qualify if they meet specific conditions.

What Has Changed?

1. Eligibility for Remote Workers

The Beckham Law now applies to individuals who work remotely for non-Spanish companies. Digital nomads employed by or contracting with foreign companies qualify for this tax regime, along with those under the Digital Nomad Visa provisions.

2. Simplified Relocation Requirements
   Beckham’s Law is a tax regime aimed at attracting highly skilled professionals to Spain. Originally, it catered primarily to employees with a Spanish employment contract or directorial role in a Spanish company. Recent updates (via the 2023 Startup Law) have extended the regime to digital nomads and remote workers. These updates allow individuals working remotely for foreign companies to benefit from this tax advantage, even if they relocate for lifestyle reasons rather than traditional professional roles. The requirements have been broadened to include digital nomads, but applicants still need to meet specific criteria (e.g., not having been a Spanish tax resident in the past 5 years and fulfilling income thresholds).
   
3. Updated Application Forms
   The 2023 updates clarified the application process, recognizing remote employees within the regulatory framework. However, while forms may now reflect this regulatory expansion, the process itself still requires careful documentation and verification of eligibility

Basic Eligibility Criteria for Digital Nomads

To qualify under the Beckham Law as a digital nomad, you’ll need to meet the following conditions:

First-Time Spanish Residency

You cannot have been a Spanish tax resident for the five years prior to submitting your application.

Employment Details

• Work remotely for a non-Spanish company. With the Digital Nomad Visa you can earn up to 20% of your income from Spanish sources, but this does not allow you to become an employee of a Spanish company. Spanish income can only come from freelance or self-employed activities.
• Be self-employed under your own company abroad while maintaining clients that fall under the non-resident definition.
• You need your employer’s certificate of incorporation apostilled and sworn translated, which you will already have from the DNV application. This requirement ensures that your employer is a legitimate, registered entity outside Spain. These documents cannot be older than 3 months at the time of application. This is a crucial detail because delays in obtaining the apostille or translation could lead to invalid documents if the submission process takes too long

Timing of Application

Submit your application within the first six months of establishing tax residency in Spain.

How to Apply for Beckham Law Benefits

Applying for the Beckham Law involves a few steps, requiring proper documentation and adherence to timelines. Here’s what you need to do to take advantage of this tax regime as a digital nomad in Spain.

1. Relocate to Spain

Begin by moving to Spain and becoming a legal resident. You can apply for the Digital Nomad Visa (DNV) or a corresponding residency permit. Explore our blog for detailed insights on this topic or contact us for help with preparing and submitting your application.

If you’d like professional assistance, we can help you prepare the necessary documentation and submit your DNV application with ease. Contact us to start your journey toward living and working in Spain as a digital nomad.

2. Check Eligibility

Work with a tax advisor to confirm your eligibility under the updated Beckham Law conditions. This usually involves verifying your employment status (remote worker, freelancer, or entrepreneur) and tax residency in the preceding years.

3. Submit Your Application

Prepare your application through Spain’s tax agency (“Hacienda”). Ensure you have all relevant documentation, including contracts or proof of self-employment, a copy of your NIE (Foreigner Identification Number), and any other supporting details.

4. Approval and Tax Filing

Once approved, you’ll be able to pay the flat 24% tax rate for up to 6 years. Consult with a tax advisor yearly to file your taxes properly under the Beckham Law framework.

Why the Beckham Law Matters for Digital Nomad Visa holders

The expansion of the Beckham Law to include digital nomads signifies Spain’s growing recognition of remote work as a valuable economic contributor. This change aligns with the introduction of Spain’s Digital Nomad Visa, which aims to attract remote professionals by offering streamlined residency benefits.

For digital nomads, the Beckham Law offers more than just tax savings—it also provides financial predictability and fosters a sense of inclusion in Spain’s professional ecosystem. Combined with Spain’s affordable cost of living (at least more than in other countries), mediterranean climate, world-class infrastructure, and vibrant culture, the law makes relocation significantly appealing.

Example Savings Under the Beckham Law

To illustrate the financial benefits, imagine a digital nomad earning €120,000 annually. Without the Beckham Law, this individual would pay progressive tax rates of up to 47%, often resulting in a final tax bill exceeding €40,000. By qualifying for the Beckham Law, this nomad would pay just 24%, reducing their tax burden to €28,800. The savings are substantial, offering more flexibility for lifestyle and career investments.

Next Steps for Digital Nomad Visa holders Interested in getting the special tax regime

The updated eligibility criteria for the Beckham Law, coupled with Spain’s Digital Nomad Visa, present a golden opportunity for remote workers and digital nomads.

If you’re planning to relocate to Spain or are already enjoying everything this beautiful country offers, now is the time to explore whether the Beckham Law applies to you. Get in touch with us and we will ensure you’re connected with our trusted team of tax advisors. Together, we can provide the support you need to remain compliant with Beckham’s Law while still adhering to the requirements of the Digital Nomad Visa.

Conclusion: The Beckham Law and Digital Nomad Visa holders

• The Beckham Law, which offers a distinctive tax framework for non-residents in Spain, now includes digital nomads! Until January 2023, there was significant debate among accountants and lawyers about whether digital nomads qualified for this scheme. Eligibility was unclear due to the previous interpretation of the law and outdated application forms. However, the criteria have since been expanded to go beyond traditional relocation scenarios, such as being employed by a Spanish company or holding a directorial role with limited share ownership (<25%). Now, the law encompasses individuals employed by overseas companies but working remotely from Spain, offering a tailored solution for the digital nomad lifestyle.
• To benefit from the special tax rate of 24% (on earnings up to €600,000 per year) or 47% (on earnings exceeding €601,000 per year), applicants historically needed to relocate to Spain for professional reasons. Previously, digital nomads, who often move for lifestyle reasons and whose work does not require a physical presence, were excluded. However, the updated criteria now include digital nomads, allowing individuals working remotely for foreign companies to apply, provided they establish residency in Spain.
• Applications for the Beckham Law must be submitted within the first six months of establishing residency. Approval is contingent upon meeting specific eligibility requirements, which include documentation proving the applicant’s status as a remote worker or employee of a foreign company.
• It’s important to note that this opportunity is available only to those who have not been Spanish tax residents for at least five years before applying. Beckham Law benefits can only be obtained once, not renewed.

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