Beckham Law: how to prepare a reliable simulation
A comparison method with explicit assumptions. No salary threshold alone guarantees savings.
Co-founder and CFO, Iter Advisors
Remember in 30 seconds
The special regime applies 24% up to EUR 600,000 of the tax base covered by this schedule, then 47% above it. To assess its benefit, compare both regimes for your tax year, autonomous community, income and personal circumstances.
Two calculations using identical assumptions
There is no universal threshold at which Beckham Law becomes beneficial. Eligibility and tax outcomes are separate questions. First confirm access to the regime, then compare total tax under each option.
A marginal rate applies to a band of income; the effective rate relates total tax to a defined base. Directly comparing 24% with the highest marginal rate does not measure savings.
Information to gather before the simulation
Document the tax year, autonomous community, residence dates, household composition, fixed and variable salary, benefits, other income and relevant assets. Separate gross salary, taxable base, social contributions and income tax.
For ordinary IRPF, use the national and regional schedules for the chosen year and the reliefs that actually apply. For Beckham, confirm the classification and source of income. Present both results on the same basis.
A fictional example using the legal rate
Article 93 of the IRPF Law provides a 24% rate up to EUR 600,000 for the tax base covered by this schedule, then 47% on the excess. Investment income subject to a separate schedule must be calculated separately.
Purely arithmetic example: for a fictional EUR 700,000 taxable base entirely subject to this schedule, 600,000 × 24% + 100,000 × 47% = EUR 191,000. This does not measure net income or savings versus ordinary IRPF; it excludes social contributions and any other tax.
Assess each year of the period
The regime may apply in the tax year Spanish residence is acquired and the following five years, subject to the applicable conditions. Do not automatically multiply annual savings by six: income, household circumstances, residence and tax rules may change.
Compare with France and have the result checked
A France–Spain comparison must also address tax residence, income sources and double taxation rules. It is not simply a matter of applying two rates to the same gross salary. Have the simulation and its sources checked by a qualified professional before deciding.
