Beckham Law advisor in Madrid 2026: the 24% income tax + 0% wealth tax + Mbappé Law combination explained

Beckham Law advisor in Madrid: the specialist firm for executives relocating to Spain’s capital

Madrid’s status as one of Europe’s top destinations for senior executive relocation is well established. What drives it is a combination of professional environment — the city hosts the European headquarters of many of the world’s leading financial, legal and consulting organisations — and a fiscal regime that, for qualifying international arrivals, is among the most competitive on the continent.

At the centre of that fiscal regime is the Beckham Law (Article 93, IRPF Law 35/2006, as reformed by the Startup Act 2022) combined with the Comunidad de Madrid’s 100% regional wealth tax exemption. Together, they offer:

• Flat 24% income tax on Spanish-source income up to €600,000 (versus a top marginal rate of 47% under standard IRPF)
• Zero regional wealth tax on Spanish assets during the Beckham period (100% exemption under Comunidad de Madrid rules)
• Complete exemption from Spanish income tax on all foreign-source income during the 6-year regime
• No Modelo 720 obligation (overseas assets declaration) for the duration of the special regime

BMC manages the full Beckham Law process from our office in Castelló 36, 1st floor, 28001 Madrid — in the Barrio de Salamanca, within walking distance of the main corporate and financial clusters of the city.

The Mbappé Law phenomenon: what it means for Beckham Law in Madrid

Few events have done as much to raise international awareness of Spain’s favourable tax environment for high-income professionals as Kylian Mbappé’s move to Real Madrid. The phrase “Mbappé Law” circulates widely — but it requires careful clarification.

The Mbappé Law (as referenced in press coverage) is not a separate legal instrument. It refers to the standard Spanish Non-Resident Income Tax (IRNR) regime as applied to Mbappé’s situation: as a professional athlete who receives income from Real Madrid but is not classified as a Spanish tax resident under the France-Spain Double Tax Treaty, Mbappé pays Spanish IRNR at the applicable treaty rate on his Spanish-source income from the club.

The Beckham Law (Article 93 IRPF) is an entirely different regime. It applies to individuals who do transfer their Spanish tax residence and qualify under one of the eligible categories: employees transferred by an employer, remote workers for non-Spanish companies, entrepreneurs, company directors and highly qualified professionals.

The two regimes are incompatible for the same individual. The Mbappé Law and the Beckham Law cannot be combined.

What the “Mbappé effect” has genuinely done for Madrid’s Beckham Law market is to reinforce the city’s positioning as the Spanish destination of choice for elite international professionals across all sectors. The executives, partners and advisors who move to Madrid in the orbit of the global sports, media and entertainment industries attracted to the city are precisely the Beckham Law profile.

Madrid-specific Beckham Law analysis: the numbers

For an executive with €400,000 per year in Spanish income, the comparison in the Comunidad de Madrid is stark:

This does not include: the 100% Comunidad de Madrid wealth tax exemption (valued at approximately €8,000–€50,000/year for assets of €1M–€3M in Spain), nor the complete exemption from Spanish income tax on any foreign-source income (particularly relevant for executives who receive dividends, foreign property income or returns from foreign investment portfolios).

Complex variable compensation in Madrid: what BMC analyses

For executives in Madrid’s investment banking, private equity, asset management and legal sectors, the most valuable part of BMC’s Beckham Law service is often the variable compensation analysis:

Bonus payments

Bonuses paid by a Spanish employer are Spanish-source income and taxable at 24% under Beckham. Bonuses paid by a foreign parent (for services rendered globally) may qualify partially or wholly as foreign-source income exempt from Spanish tax. BMC analyses the terms of each bonus payment before the Beckham period begins.

Restricted Stock Units (RSUs)

RSUs from a Spanish entity vest as Spanish-source income. RSUs from a foreign parent that span the pre-Spain and Beckham periods require time apportionment — the portion attributable to pre-Spain activity may qualify as foreign-source income exempt under Beckham.

Carried interest (private equity)

The Spanish characterisation of carried interest — as employment income, capital gains or a hybrid — and its source allocation is one of the most complex areas in Madrid PE. BMC has advised multiple PE professionals relocating to Madrid on carried interest structuring under the Beckham Law.

Stock options (NQOs and ISOs)

American-style stock options require analysis of the vesting schedule, exercise date and source allocation. BMC works with US advisors on the interface between US equity compensation rules and the Spanish Beckham Law treatment.

ITSGF planning for Madrid executives

For executives who acquire property or build Spanish assets above €3 million during the Beckham period, the ITSGF is a real cost that requires planning. Since only Spanish-located assets count under the Beckham Law, the most effective planning approach is to limit Spanish asset accumulation during the Beckham period — particularly for executives whose financial wealth is held in foreign companies, foreign accounts or foreign real estate.

BMC calculates the exact ITSGF exposure for each Madrid executive client before the Beckham period begins and models the effect of proposed Spanish property acquisitions on the total tax position.

BMC Madrid office: in-person advice for Beckham Law

BMC — Blue Mountain Asesores Castelló 36, 1st floor 28001 Madrid (Barrio de Salamanca)

Available in English, Spanish, German and French. The initial consultation covers eligibility assessment, tax saving quantification and identification of key complexity factors for your specific profile (equity compensation, home-country exit tax, ITSGF planning). In-person, video call or telephone — as preferred.