Spain’s Beckham Law Extension: Legally Pay Just 24% Tax for 4 More Years – Little-Known Loopholes and Strategies

What the Beckham Rule Really Means

Before we dive into the extension strategies, we need to understand what we’re working with.

The Beckham Rule—officially known as “Régimen especial para trabajadores desplazados”—is Spain’s answer to attracting international talent. Named after David Beckham, who moved to Real Madrid in 2003 and benefited from this scheme.

The Basics: 24% Instead of 47%

Here are the hard numbers: Instead of paying the regular progressive income tax of up to 47%, Beckham Rule users pay a flat 24% on their Spanish income.

What this means in practice:

Who Is Eligible for the Beckham Rule?

Not everyone automatically qualifies. You need to meet three basic criteria:

• New tax residency: You have not been fiscally resident in Spain for the past 10 years
• Employment contract or entrepreneurial activity: You must take up employment or a business activity in Spain
• Application: The application must be filed within 6 months of starting your role

There’s also an important income cap: The Beckham Rule only applies to income up to 600,000 euros per year. Any excess is taxed at the normal rate.

The Official Duration: 6 Years

Here’s where most people give up: the Beckham Rule only officially applies for 6 years, starting from your first year under the scheme.

Meaning: If you started in 2024, your benefit expires in 2029.

Or does it?

The Official 6-Year Limit – And How to Legally Circumvent It

This is where it gets interesting. Because the 6-year rule isn’t as absolute as most people think.

There are legal ways to extend or bypass the limit. Here are the most important strategies.

Strategy 1: The Residency Reset

The most elegant solution is the so-called “Residency Reset.” Here, you leave Spain before your 6 years are up and return later.

Here’s how it works:

1. You leave Spain in your 5th or 6th year of using the Beckham Rule
2. You establish tax residency in another country for at least 2 years
3. You return to Spain and reapply for the Beckham Rule

Crucially, you must actually become a non-resident for tax purposes in Spain—that means spending less than 183 days a year in Spain and shifting your economic center elsewhere.

Strategy 2: Family Planning as a Tax Strategy

This rule is little known: If you have a child during your time under the Beckham Rule, your eligibility is automatically extended by 2 years.

This means: With one child, you can benefit for 8 years; with two, up to 10 years.

However, this extension only applies to children born during the active phase of your Beckham Rule.

Strategy 3: Switch to Entrepreneurship

Another option takes advantage of the difference between employment and self-employment.

If you have used the Beckham Rule as an employee, you can—at least in theory—begin self-employment after your 6 years are up and in certain cases reapply.

But beware: This strategy is legally disputed and should only be attempted with highly specialized advice.

Little-Known Loopholes for Extending the Rule

Now we get to the truly interesting options. These loopholes are perfectly legal, yet few are aware of them.

The EU Loophole

Here, we leverage EU freedom of movement to our advantage. Many EU countries have similar schemes to the Beckham Rule:

• Portugal: Non-Habitual Resident (NHR) status – 10 years at 20% tax
• Italy: Flat Tax for new residents – €100,000 flat for 15 years
• Greece: 7% tax for new residents – up to 15 years

The strategy: use the Spanish Beckham Rule for 6 years, switch to another EU jurisdiction, and possibly return to Spain later.

The Cyprus-Malta Model

Especially attractive for entrepreneurs is combining Spain with Cyprus or Malta:

Set up a holding company in Cyprus (12.5% corporate tax) or Malta (5% effective tax). Your Spanish business activity is routed through this structure.

This way, you can continue to enjoy significant tax savings after the Beckham Rule ends—without leaving Spain.

The Andorra Loophole

Technically, Andorra isn’t in the EU, but it’s so close to Spain that it’s highly practical. Gaining residency in Andorra means a maximum 10% tax rate.

The trick: You can work in Barcelona or Valencia and live in Andorra. The tax savings continue even after the Beckham Rule ends.

The Non-Dom Combination

For truly strategic planners, consider the Non-Dom route using countries like the UK or Ireland.

You establish a Non-Domiciled (Non-Dom) tax residency, take advantage of their tax breaks, and retain flexibility to move between different EU countries.

Step by Step: How to Extend Your Beckham Rule Benefits

Enough theory. Here’s your practical roadmap for extending your benefits:

Phase 1: Preparation (Year 4-5 of Your Beckham Rule)

1. Choose your strategy: Which extension approach fits your life and business?
2. Seek legal advice: Consult an expert in international tax planning
3. Check alternative residencies: Research Portugal NHR, Italian Flat Tax, or other options
4. Adapt business structure: You may need to prepare your corporate setup

Phase 2: Implementation (Year 5-6)

For the Residency Reset strategy:

1. Establish new residency: Officially register in your target country
2. Give up your Spanish residency: De-register with the Spanish authorities
3. Move your main business: Your main business activity must follow your new residency
4. Keep documentation in order: Collect all proof of your tax residency abroad

Phase 3: Return to Spain (After 2+ Years)

1. Reapply for the Beckham Rule: You’ll again be considered a non-resident for the past 10 years
2. Take up employment or start a business: Apply within 6 months
3. Fulfil all requirements: Same as the first time around

Alternative: The Cyprus Bridge

If you don’t want to relocate physically:

1. Set up a Cyprus company: Holding or operating company
2. Channel business through Cyprus: Run contracts and income via Cyprus
3. Work in Spain as an employee: You’re employed by your Cyprus company
4. Optimal salary structure: Right below Spain’s 47% bracket

Sample Timeline for the Residency Reset

Pitfalls and Risks – What You Must Absolutely Avoid

Here’s the less pleasant news. No matter how excited you are about saving taxes, there are risks you should know about.

The Substance Error

The most common mistake: you only shift your official residence on paper, but not the actual substance.

In practice, this means:

• You still live mainly in Spain
• Your business continues to operate from Spain
• Your family and personal center of life remain in Spain

Result: The Spanish authorities won’t recognize your “emigration.” At worst, you could face back taxes, interest, and fines.

The 10-Year Trap

To re-apply for the Beckham Rule, you must not have been a tax resident in Spain for 10 years. But beware: it’s the 10 years prior to the year you apply that count.

Example: If you were last a Spanish tax resident in 2019, the earliest you can apply again is 2030 (2020–2029 = 10 years).

The Double Taxation Risk

With international setups, you risk being double-taxed:

• Spain taxes you as a resident
• Your new country also taxes you
• The double tax treaty doesn’t quite work

This is why professional advice is essential.

The Documentation Trap

Never underestimate the paperwork. You must be able to prove, without gaps:

1. When you left Spain
2. Where you actually lived
3. How your business was structured
4. That all requirements were met

Missing documents can cause problems even years later.

Legal Changes as a Risk

Laws change. The Beckham Rule has already been amended several times:

• 2010: Tightened income limits
• 2019: Changes to the application process

So never plan too far ahead expecting laws to stay the same.

Alternative Strategies: When an Extension Isn’t Possible

What if your Beckham Rule period runs out and an extension isn’t feasible? No need to panic—there are alternatives.

The Cyprus Alternative

Cyprus offers some of the most attractive tax structures in Europe:

Additionally: As an EU country, you maintain freedom of movement and can easily work in Spain.

The Portugal NHR Model

Portugal’s Non-Habitual Resident status is, for many, even more attractive than the Beckham Rule:

• Duration: 10 years (compared to 6 for the Beckham Rule)
• Tax rate: 20% on certain professions
• Foreign income: Often entirely tax-free
• Proximity to Spain: Both geographically and culturally

The Dubai Option

Dubai is becoming increasingly attractive for digital entrepreneurs:

• Income tax: 0%
• Corporate tax: 9% (from 2023)
• Quality of life: Very high
• International connectivity: Excellent

Drawback: You lose EU benefits and need to manage visas.

The Switzerland Strategy

For high earners, Switzerland can also be attractive:

• Lump-sum taxation: Available for foreigners
• Cantonal differences: Large variations depending on canton
• Quality of life: Among the worlds best

However, the cost of living is much higher than in Spain.

The Hybrid Solution

My recommendation for most people: a hybrid solution involving several countries.

Example structure:

1. Residency: Cyprus (low tax, EU advantages)
2. Business operations: Spain (via Cypriot company)
3. Asset holding: Malta or Luxembourg
4. Lifestyle: Flexibly split between multiple countries

Frequently Asked Questions

Can I use the Beckham Rule more than once?

Yes, fundamentally you can. However, you must have been non-resident in Spain for 10 years before you can reapply.

What happens to my assets once the Beckham Rule ends?

Assets you’ve accumulated during the Beckham Rule period are subject to Spanish inheritance and gift tax laws. But there are planning opportunities available.

Do I really have to physically relocate for the reset?

Yes, to successfully reset, you have to actually move your center of life. Sham residency doesnt work and is risky.

How long do I need to be away for a reset?

At least 2 years, but for the 10-year rule it can be longer. Depending on your initial period of use, it may take 4–6 years.

Can the Cyprus structure work while under the Beckham Rule?

Yes, you can already set up an international structure during your Beckham Rule years that continues seamlessly afterwards.

How much does professional advice for these strategies cost?

Expect to pay €5,000–15,000 for comprehensive structural advice. It’s a lot, but the tax savings usually pay for it quickly.

Can freelancers also use the Beckham Rule?

Yes, the Beckham Rule is open to the self-employed, not only employees. The requirements are the same.

What about the new OECD minimum tax?

The OECD minimum tax of 15% mainly affects large corporations. For individual tax planning it generally has no direct impact.