Tax Payment in Madrid – Beckham Law and Digital Nomad Law
יפעת צאיג- Apr 26
- 2 min read
The tax system in Madrid, as part of Spain, operates under national tax laws. However, Madrid has become particularly attractive to certain individuals and businesses due to its tax policies. Spain has a progressive income tax system, with different rates based on income levels. In addition, there are various deductions and tax credits available to taxpayers.
Beckham Law (Ley Beckham):
The Beckham Law, officially known as the Spanish Royal Decree, is a tax regime designed to attract highly skilled professionals, including athletes and entertainers, to live and work in Spain. Named after the famous footballer David Beckham, one of the first to benefit from this tax incentive, it allows eligible foreign workers to be taxed at a flat rate of 24% on their Spanish-sourced income for up to six years. This special tax regime is particularly attractive for high earners as it can offer significant tax savings. Officail website: https://www.boe.es/buscar/doc.php?id=BOE-A-2005-9875
Digital Nomad Law (Regimen de Impatriados or Digital Nomad Law):
The Digital Nomad Law was introduced to attract remote workers and digital nomads to Spain.Under this law, foreign workers who can prove that their work can be performed remotely and that their employer is not Spanish can benefit from a reduced tax rate of 24% on their foreign-sourced income for up to five years.This tax incentive is intended to attract self-employed professionals and encourage them to choose Spain as their place of residence.
It is important to note that tax laws and regulations can be complex, and each individual's tax situation may vary. Therefore, it is always recommended that individuals considering relocating to Madrid or taking advantage of these tax laws seek professional advice from a certified tax consultant or legal expert to ensure compliance and fully understand the implications of these tax regimes.
Officail website:
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