The "Beckham Law" — Tax Haven or Hype? 💸🇪🇸
When people talk about the "financial benefits" of moving to Spain, one term always dominates the conversation: The Beckham Law.
In 2025, this isn't just a loophole for footballers. It has become a strategic financial tool for high-earning digital nomads, tech executives, and remote workers landing in the Malaga province.
But does it actually live up to the hype? Here is the breakdown:
📉 1. The Flat 24% Advantage In Spain, standard income tax is progressive and can climb as high as 47% for high earners. Under the Beckham Law (the Special Expat Tax Regime), you are taxed as a non-resident.
- The Deal: You pay a flat 24% on all Spanish-sourced income up to €600,000.
- The Result: If you’re earning €150,000, you could be saving over €20,000 per year compared to the standard tax regime.
🌍 2. Only "Spanish Source" Matters One of the biggest wins for international professionals is that, under this regime, you are generally only taxed on income earned within Spain. Your foreign investment dividends, rental income from back home, or capital gains outside of Spain are typically exempt from Spanish taxation.
🛡️ 3. The Andalusia Wealth Tax Shield Wealth Tax is a common fear for expats in Spain, but in 2025, Andalusia remains one of the most attractive regions.
- The regional government offers a 100% relief on Wealth Tax.
- While the national "Solidarity Tax" still exists for those with net assets over €3M, for the vast majority of professionals, Andalusia offers a massive tax shield compared to regions like Catalonia or Valencia.
⏳ 4. Who Actually Qualifies? It’s not for everyone, and the clock is ticking once you arrive:
- The 5-Year Rule: You must not have been a tax resident in Spain for the last 5 years.
- The 6-Month Window: You must apply within 6 months of starting your Spanish contract or registering your Digital Nomad Visa.
- The "Nomad" Exception: Previously, freelancers struggled to qualify, but the 2025 Digital Nomad Visa has bridged that gap, allowing remote workers for foreign companies to finally access these savings.
The Reality Check: The Beckham Law lasts for 6 years (the year of arrival + 5 more). It is a "launchpad" tax rate designed to help you settle, invest, and build your life in places like Malaga without the initial sting of high progressive taxes.
Are you planning your move based on tax efficiency? 24% flat-rate tax in a city with Malaga's lifestyle is a hard combination to beat.
Have questions about the Digital Nomad Visa vs. the Beckham Law? Email to us philippe@milcham.com
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