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By Chris Burke
This article is published on: 20th June 2025
A chance to change your financial Future Forever!
Many people are aware of the Beckham Law or soon find out about it (hopefully) when they arrive in Spain. In this article I am not going to explain its benefits because most people know these, but I am going to explain how being on this tax regime can potentially CHANGE your whole financial future with proper planning.
The big attraction regarding the Beckham Law for many is the low, one band income tax of 24% up to an income of €600,000 per year.
However, although this can massively increase your income over the 5 complete tax years you are here (if you start the Beckham Law in a January/February you pretty much have 6 years on this regime) and allows you to save/put aside thousands potentially over that period of time, for me the other benefits it allows can have the biggest impact on your financial future.
Your worldwide income is not taxable on the Beckham Law whilst tax resident in Spain, which is great if you have investments/assets outside of Spain which would normally need to be declared and tax paid. So, let me give you an example:
You have investments/pensions outside of Spain (let’s say in the UK for this exercise) that are around £1million in total, split into the following asset classes:
If you were not on the Beckham Law, each time you took money from these assets you would normally pay capital gains tax up to 30% on investments/Isa/stocks/shares and income tax up to 47% on the pension. Imagine if you could ‘encash’ these all-in-one go and do NOT pay any tax and then moving forward set these up in a highly tax efficient manner. You wouldn’t pay any tax on these amounts ever and minimal tax on any gain they made, as these could be offset/deferred and mitigated. Well, normally (always depending on your situation) on the Beckham Law you can do this. You are not a UK tax resident thus there is no UK tax to pay (as long as you have informed the HMRC this) and as a Spanish resident on the Beckham Law there is also no tax to pay on income outside of Spain.
So, rather than pay up to 30% tax on the investments/gains (approximately £138,00 in the above example) and income tax of approximately 30% on the pension income (taking into account the pension income alongside your state pension also) gives a tax saving of approximately £6,000 per year….for life…..over 30 years that’s £180,000 plus inflation. You have also, very importantly, turned the pension (which has to adhere to pension laws) into a lump sum of money free of tax and are able to do with this what you wish.
Once you have ‘encashed’ these assets and paid zero tax potentially, you can then make sure moving forward, for when you have finished the Beckham Law, that these are highly tax efficient and minimal taxes to be paid on in the future.
This is just one way that smart, efficient financial planning can massively change your financial future we implement for client son a daily basis. Alongside this we work with successful, well known mainly UK based investment companies including ethical and sustainable investing in required to greatly increase and secure our clients financial future.
One last note, UK property can also work this way, however savings tax is still payable in the UK on this as a non-UK resident, although there are some potential allowances.
Note – ALWAYS advice depends on your personal situation and professional advice from a tax adviser is always highly recommended.
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If you would like any more information regarding any of the above, or to talk through your situation initially and receive expert, factual based advice, don’t hesitate to get in touch with Chris.
If you’re an international professional living or working in Barcelona, your financial situation is unique — and it deserves a tailored plan.
With the right structure in place, you can:
