Maximize your earnings with the Beckham law and foreign company setup

The Beckham Law taxes your Spanish-source income at a flat 24%. If you also operate through a foreign company in a 0% corporate tax jurisdiction, income from clients outside Spain can sit outside the Spanish tax net altogether. The result: a tax burden well below what you'd pay as a standard autónomo or through a regular SL.

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The Beckham Law: quick summary

The Beckham Law (Spain's special tax regime for expats) lets qualifying individuals pay a flat 24% on Spanish-source income, while foreign-source income is exempt from Spanish tax. The regime applies for up to six years from the date you become a tax resident.

Its main advantage is combining it with a foreign company structure: if your clients are outside Spain and activity is generated through that company, the income can be classified as foreign-source and go untaxed in Spain.

Read the complete Beckham Law guide for all eligibility requirements.

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Why a foreign company

When you operate through a company in a 0% corporate tax jurisdiction (Dubai, Cayman Islands, or similar), that company pays no tax on its profits. If you're under the Beckham Law and the income is correctly structured as foreign-source, it also isn't taxed in Spain at a personal level.

The two main advantages:

1. Corporate profits with no corporate tax: the company keeps 100% of income after expenses.
2. Personal distributions with no Spanish tax: provided the income is classified as foreign-source under Spanish rules.

Example: on €100,000 in income, you could take home around €96,000, versus €77,000 for a standard autónomo.

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The numbers: Beckham Law vs. standard autónomo

• Standard autónomo (€100,000 income): after progressive IRPF and Social Security contributions, effective net is around €77,000.
• Foreign company + Beckham Law (€100,000 income): the company retains all profits and personal foreign-source income is exempt. Result: approximately €96,000 net.

The difference is around €19,000 a year. Over six years, the cumulative saving can exceed €114,000.

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Is this strategy for you

This approach works if:

• You qualify for the Beckham Law (not resident in Spain for the past 5 years, relocating for work, entrepreneurship, or a qualifying activity).
• Your income comes primarily from clients outside Spain.

Working with a specialist tax adviser is essential. The rules for classifying income as foreign-source are precise, and a poorly structured setup can trigger double taxation or penalties. Also check whether an autónomo can qualify for the Beckham Law before deciding on your structure.

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How to get started

1. Assess your eligibility: verify you meet the Beckham Law requirements based on your residency history and income sources.
2. Choose the right jurisdiction: select a 0% corporate tax jurisdiction that meets international compliance standards.
3. Set up the foreign company: work with professionals to incorporate, open a corporate bank account, and structure operations.
4. Optimise income flows: structure payments so they qualify as foreign-source income.
5. Stay compliant: file required reports and keep clear records to avoid issues with the Tax Agency.

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Conclusion

For digital nomads and entrepreneurs with international clients, combining the Beckham Law with a foreign company can legally slash your tax burden. The numbers are clear: up to €19,000 more a year versus a standard autónomo.

The structure only works properly with specialist advice. Start by understanding your baseline: read the complete autónomo guide and what taxes an autónomo pays before planning the move.