Beckham Law in Madrid
The Beckham Law in Madrid
Autonomous community: Madrid
Madrid is where most Beckham applications end up: headquarters, the big consultancies, banks and law firms, and the largest pool of international hires. It is also the community with the lowest regional income-tax scale, which has a consequence people do not expect: the regime saves less here than anywhere else.
Less is still a lot at senior salaries. But if your offer is in the €60,000 to €80,000 range, run the numbers before assuming the regime pays: the standard Madrid tax at those levels is close to 24% once allowances are counted.
What the regime is worth in Madrid
Illustrative annual figures for a single employee with no other income, computed with the Madrid scale, the one that applies to residents of Madrid. Positive savings mean the regime pays; where the standard tax is already below 24% the cell says so.
| Gross salary | Standard IRPF | Standard effective rate | Beckham (24%) | Saving / year |
|---|---|---|---|---|
| €60,000 | €14,000 | 23.3% | €14,400 | Not worth it |
| €80,000 | €22,200 | 27.7% | €19,200 | €3,000 |
| €100,000 | €30,700 | 30.7% | €24,000 | €6,700 |
| €120,000 | €39,300 | 32.8% | €28,800 | €10,500 |
| €150,000 | €52,200 | 34.8% | €36,000 | €16,200 |
| €200,000 | €73,600 | 36.8% | €48,000 | €25,600 |
Illustrative figures computed with the same engine as the calculator: single taxpayer, employment income only, individual personal allowance (€5,550), employee Social Security contributions (6.5% up to the 2026 maximum base), standard deductible expenses (€2,000), no family or regional deductions, state scale plus the regional scale of the community where the city sits (AEAT, tax year 2025 scales, the latest published). Rounded to the nearest €100. Regime: 24% up to €600,000, 47% above.
Particular to Madrid
The regional scale is the lowest in Spain
Madrid’s top regional rate is 20.5%, against 25.5% in Catalonia or 29.5% in Valencia. The combined standard tax is therefore lower, and so is what Beckham replaces.
Wealth tax: 100% relief, with a state exception
Madrid relieves the wealth tax in full. The state “solidarity tax on large fortunes” still applies above €3 million of net assets. Under the regime you are assessed only on Spanish assets.
A regional deduction for new residents that Beckham excludes
Since 2024 Madrid offers a 20% deduction on certain investments for people who become tax resident there. It applies under the standard IRPF only. If Beckham does not fit you, or does not pay at your income, this is the alternative to look at.
Who moves here
Corporate transfers, financial services, consultancy, headquarters roles. Mostly the Spanish-contract route, with a growing share of remote employees of foreign companies.
What does not change with the city
- The rate: 24% on employment income up to €600,000 and 47% above, wherever in Spain you live (outside the Basque Country and Navarre).
- The requirements: no Spanish tax residence in the previous five tax years, a qualifying reason for the move, and Modelo 149 within six months of your Social Security registration.
- The duration: the tax year of the move plus the five following years.
- What you give up: personal and family allowances and most deductions, which is why the regime can lose at moderate incomes or with several dependants.
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Frequently asked questions
Does the Beckham Law pay less in Madrid?
The 24% is the same. What is lower in Madrid is the standard tax you would otherwise pay, because the regional scale is the lowest in Spain. So the saving is smaller than in Barcelona or Valencia at the same salary, though still significant from around €90,000 up.
Can I use Madrid’s new-resident deduction and the Beckham Law at the same time?
No. The deduction belongs to the standard IRPF, and the regime replaces that with a flat rate and no deductions. They are alternatives; which one wins depends on your income and how much you plan to invest.
Do I pay wealth tax in Madrid under the Beckham Law?
Madrid relieves the regional wealth tax in full. The state large-fortunes tax applies above €3 million of net assets, and under the regime only Spanish assets count. Most employees are nowhere near it.
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Legal notice. This tool provides an indicative estimate based on the regulations in force as of 31/08/2026 and on the data entered by the user. It does not constitute tax, legal or any other kind of advice, nor does it create any professional relationship. The results do not take into account all of the personal, family and asset circumstances that determine actual taxation, including possible international double taxation. The application of the special regime of art. 93 LIRPF is subject to strict compliance with legal requirements and to acceptance by the Spanish Tax Agency; its refusal or subsequent loss may substantially alter the result. State and regional tax regulations may change at any time. Before taking any decision, consult a registered tax advisor. Beckham Law Agency accepts no liability for decisions taken on the basis of this estimate.