The Beckham Law Mallorca: A Smart Tax Route for International Buyers Living & Working in Mallorca. If you’re considering buying a home in Mallorca not just as a holiday property, but as a base for living, working, or launching a business, Spain’s Beckham Law could make your relocation far more attractive financially. Designed to reduce income tax for foreign professionals, this law is one of Europe’s most attractive fiscal incentives for international buyers and expats.
What is the Beckham Law? History of Beckham Law
The Beckham Law Mallorca is a Spanish fiscal policy that was created to attract foreign talent and qualified workers to Spain.
Enacted through Royal Decree 687/2005 and integrated within the Spanish Income Tax Act, this law offers foreigners who qualify a preferential tax treatment compared to regular Spanish residents, including Spanish citizens.
The Beckham Law was named after the British football icon David Beckham, who was among the initial beneficiaries of the decree upon joining Real Madrid. The law’s primary goal was to draw in exceptional talent and wealthier foreign workers by easing their tax load. Initially the decree included professional sports, but now excludes this category.
However, in 2010, the law was revised to exclude professional athletes, after criticism that it disproportionately benefited multimillionaire sports stars. Today, it focuses on highly skilled professionals and entrepreneurial talent across tech, finance, and innovation sectors.
Breakdown of the Beckham Law Taxes:
Regular Spanish Tax Resident (Spaniards or long-term foreigners)
• Taxed on worldwide income
• Progressive tax rates:
• 19% to 45% (varies by region and income level)
• Must declare all global earnings — salary, investments, property abroad, etc.
Beckham Law Taxpayer (Qualified new expat worker)
• Taxed only on Spanish-sourced income
• Flat rate of 24% on income up to €600,000 (47% above that)
• Foreign income is exempt
• Valid for up to 6 years
This advantageous tax regime applies during the first six years of residency in Spain, making Spain an attractive destination for global professionals.
Spanish tax residency usually means you’re taxed like a Spanish citizen — progressively and on global income. The Beckham Law, however, treats you more like a non-resident (even though you’re a resident), only taxing Spanish income at a flat rate, and exempting foreign income.
Who Qualifies for The Beckham Law?
The Beckham Law Mallorca isn’t just for Americans, British, or other non-Europeans—it’s open to any non-Spanish citizen who hasn’t been a Spanish tax resident in the past five years. This includes Germans, Nordics, Dutch, and other EU citizens buying property and working here.
With insights from Lullius & Partners law firm, a leading voice on Spanish tax law, we’re highlighting the key profiles who may benefit under the Beckham Law—especially following the 2024 updates that expanded eligibility for freelancers, remote workers, and entrepreneurs.
Eligible employees:
1. New Employment in Spain
Begin a job with a Spanish company registered with the Spanish Tax Agency (excluding professional athletes).
2. Relocation by Foreign Employer
Same employment contract, but transferred to work in Spain. Requires a relocation letter and employer registration with the Spanish Tax Agency.
3. Remote Work for a Foreign Company (New 2024)
Live in Spain while working remotely for a non-Spanish employer.
4. Director of a Spanish Company
Move to Spain to act as a company director. The company must not be a passive holding entity.
Eligible Freelancers:
5. Entrepreneurial Activity (New 2024)
Start an innovative business of special economic interest to Spain, approved by Spanish trade authorities.
6. Highly Qualified Freelancer for Startups (New 2024)
Must be a freelancer, highly skilled, and work with startups as defined under Spain’s startup law.
7. Freelancer in R&D, Innovation, or Training (New 2024)
Freelance work focused on research, development, innovation, or training. These activities must generate over 40% of your total income.
Not Eligible:
• Standard freelancers (e.g. consultants, creatives) without meeting one of the new 2024 exceptions.
• Company directors with majority ownership/control.
• Returning Spanish nationals.
(Lullius & Partners, 2024 – Beckham Law Guide)
Other key recommendations and considerations from the decree:
• Application must be made within 6 months of registering with Spanish Social Security.
• The applicant and the applicant’s spouse and children under 25 are all entitled to the same preferential tax treatment
• certain types of income do not qualify for this preferential tax treatment including Spanish-sourced gifts, Spanish-sourced inheritances, and Spanish-sourced gifts.
• It’s also important to note that the Spanish Tax Agency (AEAT) has increased audits on individuals benefiting from the Beckham Law, to ensure they are genuinely engaged in qualifying work or business activities and not misusing the regime.
Lullius & Partners law firm has outlined a specific process for navigating the application.
“Before applying you must have:
- An employment contract
- A NIE (foreigner ID number)
- A valid Passport
- A residence card (e.g. TIE), or proof that you have applied for one if you haven’t received it yet
Then, you will:
- Register with Spain’s tax office (Agencia Tributaria) by submitting Modelo 030 online, in person (by appointment), or via mail
- Receive your social security identification number (SSN)
- Submit Modelo 149 to the Agencia Tributaria online, in person (by appointment), or via mail (no later than six months after initially registering with the tax office)
- Receive a certificate of approval
- Present your certificate to your employer”
(Lullius & Partners, 2024 – Beckham Law Guide)
The Beckham Law & US tax implications
Because the U.S. uses a worldwide tax system, American citizens living abroad must still file federal tax returns. However, there are several tax provisions that help minimize or eliminate double taxation:
– Foreign Earned Income Exclusion: Excludes up to $130,000 (2025) of qualified foreign income.
– Foreign Tax Credit: Offsets U.S. taxes with amounts paid to foreign governments.
– Foreign Housing Exclusion: Deducts eligible overseas housing costs from taxable income —like rent, utilities, and furnishings—from their U.S. taxable income, making international living more financially efficient. For buyers of luxury real estate, this can help offset the cost of renting while settling into your new property or even temporarily housing staff or family.
– Totalization Agreements: Prevent double social security payments between countries.
(Greenback Expat Tax Services – 2025)
Why This Matters for Mallorca Property Buyers
If you’re buying a luxury home here—whether to live part-time or full-time—the Beckham Law Mallorca could significantly reduce your tax exposure if you plan to work or run a business from Spain. It doesn’t reduce property-specific taxes (like ITP or IBI), but it does make long-term relocation far more tax-efficient.
Property tax (IBI) and wealth tax apply solely to Spanish-based assets, meaning international assets are excluded from taxation. This presents a significant advantage for expatriates with substantial holdings abroad. For example, an expatriate with a property portfolio worth €3 million would only incur wealth tax on the Spanish portion— estimated around 1.79%. This tailored taxation structure creates strong incentives for high-net-worth individuals investing or relocating to Spain. (Lawants lawyers and accountants, 2025)
Would you like that tailored into a real estate marketing context?
Final Thought: Relocate Strategically and Luxuriously in Mallorca
With the Beckham Law’s expanded benefits, relocating to Spain isn’t just about lifestyle—it’s a strategic financial move. Whether you’re working remotely, launching a business, or taking on a new role, this regime can significantly reduce your tax burden.
We work closely with legal experts like Lullius & Partners law firm to help our clients navigate these opportunities seamlessly—offering more than beautiful homes, but also the right connections to make your move to Mallorca a smart one.
For further information please do contact one of the team.
