Guide · 5 min read
Beckham Law or standard income tax: when does it pay off?
The Beckham Law is usually a great deal, but not always. Here is how to tell, before you make a choice you can't easily undo.
Two very different systems
Under standard income tax (IRPF), Spanish residents pay progressive rates on their worldwide income. In Catalonia, the top marginal rate reaches 50%. In exchange, you get personal and family allowances and deductions.
Under the Beckham Law, employment income is taxed at a flat 24% up to €600,000 a year (47% above that). You are taxed much like a non-resident: your salary is taxed in Spain wherever it is earned, but most other foreign income and assets stay outside. But there are no personal or family allowances.
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Open the simulatorWhen it usually pays off
- Your salary is medium to high: the higher it is, the bigger the gap between 24% and the progressive scale.
- You have savings, investments or property abroad that would otherwise be taxed or reported in Spain.
- You plan to stay in Spain for several years, so you benefit from the full six-year period.
When it may not
- Your salary is modest and you have children or other dependants, so family allowances would lower your bill under standard income tax.
- You rely on a double tax treaty with your home country, which may apply differently under the regime.
- You expect large Spanish investment income or gains, which have their own rates under the regime.
Our advice
Run the numbers for your case first. If you opt in and later give the regime up, you can't come back to it for years.
This guide is general information, not personalised tax advice. Rules may change; we check the current rules for every client.