Beckham Law in 2026: the mechanics, the election, the trade-offs

The 2023 Startups Law materially widened eligibility. As of 2026, you qualify if all of these are true:

• You were NOT Spanish tax resident in any of the prior 5 years (reduced from 10 in 2023)
• You moved to Spain as a result of either: an employment contract with a Spanish company, becoming a director of a Spanish company, performing professional activity as a self-employed entrepreneur in an innovative sector, OR receiving a DNV-equivalent permit
• You do not earn Spanish-source income through a permanent establishment (PE)
• You elect into the regime within 6 months of social security registration

The 2023 reform also extended the regime to spouses and children of the qualifying applicant, which was previously not possible.

Under Beckham:

• Spanish-source employment income up to €600,000: 24% flat (vs progressive 19-50%)
• Spanish-source employment income above €600,000: 47% (no progressive ladder, no allowances)
• Foreign-source dividends, interest, capital gains: generally NOT taxable in Spain
• Foreign-source rental income: NOT taxable in Spain
• Spanish-source investment income: taxed at standard Spanish rates 19-28%
• Wealth tax: levied only on Spanish-situs assets
• Modelo 720: NOT required during regime

For a senior corporate move on €150,000 salary, the Beckham election typically saves €25,000-€35,000 per year vs the standard progressive regime. Over six years that's €150,000-€200,000 in tax saving — easily the single biggest financial decision of the move.

You elect into the regime by filing Modelo 149 with the AEAT within 6 months of your Spanish social security registration date. The election is approved or denied typically within 10 working days. No extensions for any reason.

Critical: the clock starts at social security registration, not at your arrival date or visa date. For DNV holders, this is the date your gestor enrols you in the Spanish system. For employee moves, it's the date your Spanish employer registers you. Drive this proactively.

Beckham is not always right. Skip the election if:

• You have major foreign-source investment income AND you would benefit from claiming UK tax credits against Spanish progressive tax. Beckham treats you as non-resident for treaty purposes, which can break some credit chains.
• You have large unrealised gains in your UK portfolio that you plan to realise during the regime. Beckham gives a clean shelter, but the post-regime step-up is not automatic.
• Your Spanish-source salary is under €60,000 a year. Standard progressive rates may produce similar effective tax with full allowances.
• You expect to leave Spain before year 4-5. The administrative effort of the election plus the post-departure complications may not be worth it.

At the end of the regime you transition to standard Spanish tax. Three planning moves are usually relevant:

• Crystallise gains in year 6 before transition. Spanish CGT applies to the full gain (no step-up to base cost on day 1 of regime exit). Realising inside the regime may be preferable depending on the gain.
• Start Modelo 720 reporting for the first year after regime end. Foreign-asset thresholds apply from year 7 onward.
• Consider re-residency abroad before year 6 if your situation allows. The regime ends when you cease to meet the criteria, and re-entry to the regime is not generally available.

Before 2023, only the primary qualifying applicant could elect into Beckham. The spouse and children paid standard Spanish tax even when they moved as a unit. The 2023 Startups Law fixed this.

Under the new rules, the spouse and children under 25 of a Beckham-qualifying applicant can also elect, provided they move with or to join the applicant and meet the standard non-residency precondition. Each family member files their own Modelo 149 within their own 6-month window.