September 3, 2025
“New” Tax Hits Beckham Law Residents
New ruling: foreigners under the so-called “Beckham Law” must pay tax on their primary home in Spain.
As I understand it, some courts previously suggested this tax could be avoided, but the Central Tax Tribunal now rules there is no exemption.
For estate agents, this affects the total cost for international buyers.
High-value clients may see higher annual taxes than expected. Understanding this change helps agents give accurate guidance and manage client expectations when purchasing property in Spain.
That said, buyers should always seek advice from a tax professional.
In simple terms, this tax means:
- If you are a foreigner in Spain under the Beckham Law, your main home is treated as if it could generate rental income, even if you live in it yourself.
- The tax is not on the market value of the home, but on its cadastral value (a lower, government-assigned value).
- You calculate a small percentage (usually 1.1%–2%) of that cadastral value, and then pay 24% tax on it.
- Essentially, it’s a small annual tax for owning your home, separate from income tax or property tax.
For example:
- Cadastral value: €2,000,000
- 1.1% of €2,000,000 = €22,000 (imputed rent)
- Tax at 24% = €5280 per year
It’s a minor cost compared to income tax, but it didn’t apply before for main residences, which is why this ruling is news.
Further reading: What is the Beckham Law?
Disclaimer: I am not a lawyer and this is not legal or tax advice, always consult a professional before advising anyone.
