Spains Beckham Law Extension: Legally Pay Only 24% Taxes for 4 More Years – Little-Known Loopholes and Strategies

What the Beckham Rule Really Means

Before we get into extension strategies, we need to understand our starting point.

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

The Basics: 24% Instead of 47%

Here are the plain numbers: Instead of the regular progressive income tax of up to 47%, as a Beckham Rule user, you pay a flat 24% on your Spanish income.

Specifically, this means:

Who Can Use the Beckham Rule?

Not everyone automatically qualifies. You must meet three basic requirements:

• New Tax Residency: You have not been a Spanish tax resident in the past 10 years
• Employment or Entrepreneurial Activity: You need to take up a job or business activity in Spain
• Application: The application must be submitted within 6 months after starting the activity

There’s also a key income limit: The Beckham Rule only applies to income up to 600,000 euros per year. Any excess is taxed regularly.

The Official Term: 6 Years

This is the point where most people give up: The Beckham Rule officially only applies for 6 years from the first year of application.

That is: If you started in 2024, your benefit runs out in 2029.

Or does it?

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

Heres where it gets interesting. Because the 6-year rule isnt as absolute as most people think.

There are legal ways to extend or bypass this limit. I’ll show you the most important strategies.

Strategy 1: The Residency Reset

The most elegant solution is the so-called Residency Reset. You leave Spain before the 6 years are up and return later.

Here’s how it works:

1. You leave Spain in the 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 apply for the Beckham Rule again

Crucially: You must actually become a non-resident for tax purposes in Spain. That means spending less than 183 days per year there and shifting your main economic interests abroad.

Strategy 2: Family Planning as a Tax Strategy

Little known: if you have a child while under the Beckham Rule, the term is automatically extended by 2 years.

This means: instead of 6 years, you can benefit for 8 with one child, for 10 years with two.

This extension only applies for children born during the active period of the Beckham Rule.

Strategy 3: The Entrepreneur Switch

Another option uses the difference between being employed and self-employed.

If you have used the Beckham Rule as an employee, you could — in theory — start self-employment after 6 years and apply for the regime again under certain conditions.

But beware: this strategy is legally controversial and should only be undertaken with specialized advice.

Little-Known Loopholes for the Extension

Now we come to the really interesting possibilities. These loopholes are completely legal, but few know about them.

The EU Loophole

Here, we leverage EU freedom of movement. Many EU countries have similar regimes 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: benefit from the Spanish Beckham Rule for 6 years, then switch to another EU regime, and perhaps later return to Spain.

The Cyprus-Malta Model

This is especially interesting for entrepreneurs, in combination with Cyprus or Malta:

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

In this way, you can continue saving substantial taxes even after the Beckham Rule ends, without leaving Spain.

The Andorra Loophole

Andorra is technically not in the EU, but so close to Spain that it has clear practical advantages. With Andorran residency you pay a maximum of 10% tax.

The trick: You can work in Barcelona or Valencia but live in Andorra. Tax savings remain significant after the Beckham Rule ends.

The Non-Dom Combination

For truly strategic planners, there is the Non-Dom combination with countries such as the UK or Ireland.

You establish a Non-Dom residency, use local tax advantages, and can move freely between different EU countries.

Step-by-Step: How to Extend Your Beckham Rule Benefits

Enough theory. Here is your practical road map for the extension:

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

1. Choose your strategy: Which extension strategy fits your life and business?
2. Obtain legal advice: Find a consultant specializing in international tax planning
3. Check alternative residencies: Inform yourself about Portugal NHR, Italy Flat Tax, or other options
4. Adjust your business structure: You may need to prepare your company setup

Phase 2: Implementation (Year 5-6)

For the residency reset strategy:

1. Establish new residency: Register officially in your target country
2. Give up Spanish residency: Deregister from Spanish authorities
3. Relocate business: Your main business must follow your new residence
4. Ensure documentation: Collect all evidence for your new residency

Phase 3: Return to Spain (after 2+ years)

1. Apply for the new Beckham Rule: You now count as not having been a tax resident for the last 10 years
2. Start employment or business activity: Apply within 6 months
3. Fulfill all requirements: Just like the first time

Alternative: The Cyprus Bridge

If you dont want to move physically:

1. Set up a Cyprus company: Holding or operating company
2. Channel business activity: Route contracts and income through Cyprus
3. Spain as an employee: Work as an employee of the Cyprus company
4. Optimal salary: Just below the 47% threshold in Spain

Timeline Example for the Residency Reset

Pitfalls and Risks – What You Absolutely Must Avoid

Now for the less pleasant news. Because despite all the enthusiasm for saving taxes, there are risks you must be aware of.

The Substance Error

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

What that means:

• You still mainly live in Spain
• Your business is still run from Spain
• Family and main life remain in Spain

The result: Spanish authorities do not recognize your emigration. In the worst case, you face back taxes, interest and penalties.

The 10-Year Trap

To apply for a new Beckham Rule, you must not have been tax resident in Spain for 10 years. Warning: the last 10 years before your application count.

An example: You were last a Spanish tax resident in 2019. The earliest you can re-apply for the Beckham Rule is 2030 (2020-2029 = 10 years).

The Double Taxation Risk

With international structures comes the risk of double taxation:

• Spain taxes you as a resident
• Your new country also taxes you
• The double taxation treaty doesnt work as planned

That’s why professional advice is essential.

The Documentation Trap

Never underestimate the documentation effort. 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 proof can cause problems years later.

Law Changes as a Risk

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

• 2010: Stricter income limits
• 2019: Application procedures adjusted

So never plan too far ahead with unchanging laws.

Alternative Strategies: When the Extension Fails

What happens if the Beckham Rule expires and an extension isnt possible? Dont panic. There are alternatives.

The Cyprus Alternative

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

Also: As an EU country, you still have freedom of movement and can easily work in Spain.

The Portugal NHR Model

Portugals Non-Habitual Resident Status is for many even more attractive than the Beckham Rule:

• Duration: 10 years (instead of 6 under the Beckham Rule)
• Tax rate: 20% on certain professions
• Foreign income: Often completely tax-free
• Closeness to Spain: Geographically and culturally

The Dubai Option

Dubai is becoming increasingly interesting for digital entrepreneurs:

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

Downside: You lose EU benefits and must work with visas.

The Switzerland Strategy

For high earners, Switzerland can also be interesting:

• Lump-sum taxation: Possible for foreigners
• Canton differences: Major variations by canton
• Quality of life: Globally top

However, living costs are significantly higher than in Spain.

The Hybrid Solution

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

Example structure:

1. Residence: Cyprus (low taxes, EU benefits)
2. Business activity: Spain (via Cypriot company)
3. Asset holding: Malta or Luxembourg
4. Lifestyle: Flexible between countries

Frequently Asked Questions

Can I use the Beckham Rule multiple times?

Yes, in principle you can. But you must not have been a tax resident in Spain for 10 years before applying again.

What happens to my assets after the Beckham Rule?

Wealth accumulated during the Beckham Rule term is subject to Spanish inheritance and gift tax laws. There are, however, planning opportunities here.

Do I really have to move physically for the reset?

Yes, for a successful reset you really must change your center of life. Sham residency does not work and is risky.

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

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

Does the Cyprus structure work during the Beckham Rule?

Yes, you can already establish an international structure during your Beckham Rule period, and continue seamlessly later.

What does professional advice for these strategies cost?

Expect to pay 5,000–15,000 euros for comprehensive structural advice. It’s a lot, but is generally recouped quickly through tax savings.

Can I use the Beckham Rule as a self-employed person?

Yes, the Beckham Rule is open to the self-employed too, not just 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 usually has no direct impact.