Beckham Law vs Luxembourg's inpatriate regime (reformed 2025): 2026 comparison
Javier López Founder · holds the Beckham regime · not a lawyer
Verified as of 14 September 2026. Every fact below comes from Luxembourg’s official government portal or a large advisory firm’s page dated 2025 or 2026. These rules change; check the source before relying on a figure. For the rest of Europe, see our 2026 comparison of European expat regimes.
This article is general information, not tax advice.
A regime rebuilt in 2025
Luxembourg had a regime for inpatriates before. Parliament adopted a reform on 20 December 2024, in force since 1 January 2025, that replaced it with a simpler exemption on pay. People already on the old regime could opt into the new one.
How the benefit works
- 50% of gross annual pay is exempt from income tax.
- Pay is counted up to €400,000, so the exemption is at most €200,000 a year.
- Excluded: benefits in kind and certain cash items listed in the income tax law.
- Income tax only: social security contributions are not affected.
Duration and who qualifies
The exemption lasts eight years following the year of arrival.
It is for highly qualified people hired or seconded from abroad who meet all of these:
- Fixed annual pay of at least €75,000.
- In the previous five tax years, they were not Luxembourg resident, did not live within 150 km of the Luxembourg border, and were not taxed in Luxembourg.
- The employer’s cap: no more than 30% of the employer’s full-time staff can benefit, a limit that does not apply to companies less than ten years old.
According to BDO, there is no prior approval: the employer reports its inpatriates each year.
Luxembourg and Spain side by side
| Spain (Beckham Law) | Luxembourg (inpatriate regime) | |
|---|---|---|
| How it works | Flat 24% on employment income up to €600,000, 47% above | 50% of gross pay exempt; the rest on the ordinary scale |
| Cap | 24% rate up to €600,000 of income | Pay counted up to €400,000 |
| Salary threshold | None | Fixed pay of at least €75,000 |
| Duration | Year of residence plus the next 5 | 8 years after the year of arrival |
| Prior non-residence | 5 tax years | 5 tax years, also no living within 150 km or being taxed in Luxembourg |
| Who | Any employee, including remote workers for a foreign employer; directors; ENISA entrepreneurs; qualified professionals for start-ups | Highly qualified people hired or seconded from abroad; employer cap of 30% of staff |
| How you get it | Modelo 149 within 6 months of Social Security registration | No prior approval; annual employer reporting |
Where each one tends to fit
Luxembourg fits a highly qualified hire with a salary well above €75,000 and a stay of several years: the window is eight years. The 150 km rule is the condition people overlook: having lived within 150 km of the Luxembourg border in the previous five years rules you out, even if you never lived or paid tax in Luxembourg itself.
Spain has no salary threshold and no employer quota, covers remote employees of foreign companies and applies one rate to all employment income, for six tax years, with no personal or family allowances and a six-month deadline to opt in.
Whether half a salary taxed on Luxembourg’s scale costs less than a flat 24% depends on the salary and on the rest of your income. Calculate both returns with your figures before deciding.
What to check before deciding
- Your fixed pay, without bonuses or benefits in kind, against the €75,000 minimum.
- Where you lived in the last five years, including within 150 km of the Luxembourg border.
- Whether your employer is within its 30% quota, or is less than ten years old.
- On the Spanish side: your route, the five-year rule and your Modelo 149 deadline. The free diagnosis checks them in five minutes, and the savings calculator shows what the Beckham Law means on your salary.
Have the Luxembourg side confirmed by an adviser in Luxembourg. If you want the Spanish side modelled by a registered lawyer or tax advisor, you can ask for a review: we will look for one, with a fixed quote before you commit to anything.
Sources
Frequently asked questions
What does Luxembourg's reformed inpatriate regime do?
Since 2025, 50% of the gross annual pay of a qualifying inpatriate is exempt from income tax, with the pay counted up to €400,000, so at most €200,000 is exempt. It lasts eight years after the year of arrival and does not affect social security.
Who qualifies in Luxembourg?
Highly qualified people hired or seconded from abroad with a fixed annual pay of at least €75,000, who in the previous five tax years were not Luxembourg resident, did not live within 150 km of its border and were not taxed in Luxembourg. No more than 30% of the employer's full-time staff can use it, except in companies less than ten years old.
Do I need prior approval?
According to BDO, no prior approval is needed: the employer reports its inpatriates each year. Confirm the formalities with an adviser in Luxembourg.
How does it compare with the Beckham Law?
Luxembourg exempts half of a salary of at least €75,000 for eight years and taxes the rest progressively. Spain taxes all employment income at a flat 24% up to €600,000 for six tax years, with no salary threshold and remote work for foreign employers covered. Which costs less depends on the salary and both returns.
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