If you are a qualified professional looking for a place to settle in Fuerteventura, you can take advantage of the Beckham Law, a special tax regime that offers lower taxation for workers posted to Spanish territory.
The Beckham Law is a great opportunity for those looking to settle in Fuerteventura and enjoy a warm and sunny climate all year round.
In addition, Fuerteventura is an island with a great quality of life, dream beaches and a wide range of leisure and culture.
How does the Beckham Law work?
The Beckham Law is a special tax regime, which allows workers posted to Spain to pay less wealth tax and income tax, as if they were non-residents, for the first 6 years.
To qualify for the Beckham Law, you must meet a series of requirements; in our real estate agency, Destiny Home, we will help you understand the whole process.
In addition, the Beckham Law is a great opportunity for Spanish companies looking to attract international talent.
If you are a qualified professional, you have many opportunities to find work in Fuerteventura, including starting a career in the real estate sector, with Destiny Home.
The Encouraging the Emerging Enterprise Ecosystem Act, known as the “Startups Act,” has created a visa category for digital nomads called “international telecommuter visa”.
The visa is valid for one year and allows companies located outside the national territory to carry out an employment or professional activity remotely.
The Startup Law will make it easier for qualified startup workers, as well as non-resident Spanish workers, to obtain visas and residency for at least five years.
Conditions to apply for the Beckham Law to come to Fuerteventura
The application must be submitted within 6 months from the date on which you register with the Social Security as an employee of the Spanish company that hires you. Doing so later will mean that your request will be denied, and you will not be able to benefit from this law.
To start benefiting from this regime, the Spanish Tax Agency must be informed by filling in and sending the form 149. In addition, we must also include:
- Your passport and NIE
- Social security number
- Employment contract with the Spanish company
Once granted, this law remains in effect for a total of 5 years.
- The individual could not have been resident in Spain during the five tax periods prior to the one in which he/she moves (previously it was 10 years).
- The movement to Spanish territory must take place, either in the first year of application of the regime or in the previous year, as a consequence of some of the following circumstances:
- By an employment contract with an employer in Spain.
- For the acquisition of the condition of administrators of entities regardless of their participation. In the event that the company is an asset-holding company, then a shareholding of less than 25% of the capital stock is required.
- For the performance in Spain of an economic activity qualified as an entrepreneurial activity (Article 70 of Law 14/2013), which is of an innovative nature, of special economic interest for Spain and which has for such purpose a favourable report from the competent body of the General State Administration.
- For the performance in Spain of an economic activity by a highly qualified professional, providing services to companies, carrying out training or R&D&I activities, he/she may also benefit from this new legislation.
- The core of the workers’ professional activity must be in Spain. It is also possible to get a job and earn income from abroad, as long as it does not represent more than 15% of the total income.
Groups excluded from the Beckham Law:
- Self-employed workers
- Professional sports athletes
- Directors of business entities
Tax advantages of the Beckham Law
By applying for this regime, expatriates can pay much less during their first 6 years in Fuerteventura.
Salaries are taxed at a fixed rate of 24% up to 600,000 euros, and above that amount, the percentage will rise to 45%.
In addition, only income obtained in Spain is taxed in Spain (with the exception of salaries).
Under this law it does not matter if you spend more than 183 days in the country, you will pay taxes under taxation rules very similar to those of non-residents.
You will only pay income tax on the income you earn in Spain.
Inheritance and gift tax
No personal income tax is paid, but the tax on the income of non-residents, this is also transferred on the tax on inheritance and donations, being considered as residents.
Capital gains are not exempt either, as profits from dividends or from the sale of property, both movable and immovable in Fuerteventura, will be charged at a flat rate of 19%.
Capital gains obtained outside Spain are still paid to the corresponding country according to its tax regulations. The fact of not having to pay in Spain all the income obtained abroad does not mean that it is not taxable in the rest of the world.
Under this special regulation for foreigners, wealth tax will only be applied to property held in Spain.
Taxation only on income generated in Spain
The worker will not be obliged to pay for the income he/she earns worldwide, but will only be taxed on the income generated in Spain, which allows diversifying the income and investments in order to pay the lowest possible tax rate, reducing the risk in the investment portfolio.
Family is included
The law extends the scope of application of the special regime to the spouse of the seconded employee.
In addition, children under 25 years of age or disabled children are included, or even the parent of these, in the event that there was no marital relationship with the employee displaced to Spain, provided they move to Fuerteventura, no later than the first year of application of the special regime to the displaced employee and meet certain requirements.
Homes for digital nomads in Fuerteventura
If you are interested in
buying a house in Fuerteventura,
do not hesitate to contact us!
We will help you find the perfect property for you and guide you through the entire buying process.
In short, Fuerteventura is an ideal place to settle down if you are a qualified professional looking for a warm climate, a great quality of life and favorable taxation.
Esta información está disponible en / Post available in: Español (Spanish)