Beckham Law advisor in Madrid 2026: 24% income tax, 100% wealth tax relief and how the Mbappé Law compares
Madrid is Spain's top Beckham Law destination and one of the most fiscally competitive cities in Europe for senior international executives. Yet the Madrid Beckham regime has significant nuances that most generalist advisors fail to navigate correctly: the interaction with the Solidarity Tax on Large Fortunes (ITSGF), the treatment of complex variable compensation (stock options, RSUs, carried interest), the Madrid-specific Mbappé effect on the city's premium executive market, and the transition strategy when the 6-year period ends. A professional earning €500,000 per year who does not manage these variables correctly can overpay by tens of thousands of euros annually.
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Specialised advice and personal service
BMC manages the Beckham Law in Madrid comprehensively from our office at Castelló 36: eligibility assessment, tax saving quantification, Modelo 149 filing, annual Modelo 151 management, variable compensation analysis, coordination with home-country advisors and analysis of the Madrid-specific ITSGF and Mbappé Law dynamics.
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Madrid = Beckham Law (24% IRPF) + 100% wealth tax exemption (Comunidad de Madrid) — the most competitive fiscal combination in Spain for senior executives.
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The 'Mbappé Law' is not the Beckham Law — Mbappé pays Spanish IRNR as a non-resident; Beckham Law applies to tax residents who qualify under Article 93.
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ITSGF (Solidarity Tax on Large Fortunes) applies on net Spanish assets above €3M — under Beckham, only Spanish-located assets count, not worldwide wealth.
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Stock options and RSUs from foreign parent companies can be partially exempt from Spanish tax under Beckham — a time-apportionment analysis is essential before starting the regime.
From first contact to case completion
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The problem
Madrid is Spain's top Beckham Law destination and one of the most fiscally competitive cities in Europe for senior international executives. Yet the Madrid Beckham regime has significant nuances that most generalist advisors fail to navigate correctly: the interaction with the Solidarity Tax on Large Fortunes (ITSGF), the treatment of complex variable compensation (stock options, RSUs, carried interest), the Madrid-specific Mbappé effect on the city's premium executive market, and the transition strategy when the 6-year period ends. A professional earning €500,000 per year who does not manage these variables correctly can overpay by tens of thousands of euros annually.
Our solution
BMC manages the Beckham Law in Madrid comprehensively from our office at Castelló 36: eligibility assessment, tax saving quantification, Modelo 149 filing, annual Modelo 151 management, variable compensation analysis, coordination with home-country advisors and analysis of the Madrid-specific ITSGF and Mbappé Law dynamics.
How we do it
Eligibility assessment and Madrid tax saving quantification
In the first consultation, we assess whether you meet the Article 93 IRPF Law requirements (not a Spanish tax resident in the previous 5 tax years, qualifying under an eligible category) and quantify the estimated tax saving under the Beckham Law in Madrid — taking into account the 100% IP exemption from the Comunidad de Madrid and the potential ITSGF impact if your net Spanish assets exceed €3 million.
Pre-arrival fiscal planning and exit tax coordination
Before the Beckham period begins in Madrid, we advise on timing decisions and coordinate with home-country advisors: exit tax implications (particularly relevant for UK nationals, US nationals, Germans under § 6 AStG and Dutch nationals), treatment of equity compensation plans under the applicable double tax treaty, optimal timing of the official move relative to bonus payments and equity vesting events.
Beckham Law application (Modelo 149)
We prepare and submit the Beckham Law application to the AEAT using the official Modelo 149, within the mandatory 6-month window from Social Security registration. We manage all AEAT correspondence until formal approval is received and advise your employer's payroll team on the correct 24% withholding rate. For executives at large companies in Madrid, we coordinate with the UGE-CE where relevant.
Annual management (Modelo 151) and variable compensation analysis
For the full duration of the regime, we prepare and submit the annual income tax return under the special expatriate regime (Modelo 151), analyse the source and treatment of each income component (salary, bonus, equity, carried interest, foreign dividends) and advise on the strategic transition to standard IRPF in the year the regime ends.
ITSGF planning and wealth tax analysis for Madrid
For executives who acquire high-value property in Madrid or whose net Spanish assets approach the €3 million ITSGF threshold, we model the exact ITSGF impact and advise on structuring options. Under the Beckham Law, only assets located in Spain are within scope — executives who maintain significant assets abroad during the Beckham period can limit their ITSGF exposure materially.
I relocated from London to Madrid as Managing Director of a private equity fund's Spain office. BMC coordinated with my UK advisors on the exit tax position, structured the treatment of my carried interest correctly under the Beckham Law, and has managed the annual filings for the full period. The tax saving over the six years exceeds €600,000, including the Madrid wealth tax exemption. Having a physical office in Madrid made every complex discussion far more productive.
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 so-called Mbappé Law and the Beckham regime in Madrid
“Mbappé Law” is the popular name for the deduction in Article 17 bis of the Community of Madrid’s Legislative Decree 1/2010, added by Law 4/2024: 20% of the acquisition value of certain investments (debt and equity in any entity) made by people who were not Spanish resident in the previous five years, become Madrid IRPF taxpayers and hold the investment for six years.
It does not stack with the Beckham regime. The deduction applies against the regional share of IRPF, and the Beckham regime computes the tax under the non-resident rules on a single scale with no regional share (Art. 93.2 LIRPF). In Madrid, the comparison is therefore between the Beckham regime and ordinary IRPF plus the deduction. The Beckham regime also excludes the special employment relationship of professional athletes (Art. 93.1.b.1 LIRPF).
More on our Mbappé Law page.
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:
| Scenario | Annual Tax | 6-Year Total |
|---|---|---|
| Standard IRPF (Comunidad de Madrid rates) | ≈€168,000 | ≈€1,008,000 |
| Beckham Law flat 24% | €96,000 | €576,000 |
| Annual saving | ≈€72,000 | ≈€432,000 |
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.
BMC has an office in Madrid. See our Madrid office for local support.
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