Beckham Law in Mallorca: the special impatriate regime for HNW professionals relocating to the Balearic Islands

Mallorca and the Balearic Islands concentrate one of the densest HNW foreign communities in Spain — the German community in Calvià, Andratx, Pollença, Santanyí and the Pla area; the historic British community in the centre and south; high-earning remote professionals who have settled since the pandemic; superyacht owners based in Palma; family offices centralising wealth management in Mallorca because of the quality of life and connectivity. Many of these professionals do not know they can be taxed at a flat 24% for up to 6 years instead of the progressive IRPF scale — or they know the regime but do not apply within the 6-month deadline, or they do not correctly coordinate their exit from the home country. Additionally, the Balearic Islands maintain Wealth Tax without significant regional bonuses — a critical factor for HNW impatriates with premium real estate on the island.

Since 2010 · 16 years Tax agent AEAT

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Why BM Consulting

Specialised advice and personal service

At BMC we advise executives, founders, C-level executives, high-earning liberal professionals and family offices relocating to Mallorca on the applicability of the Beckham Law, coordination with their home country, the application process before the AEAT and the annual management of the regime. We know the Balearic tax peculiarities — the regional IRPF rate, the Wealth Tax without bonus, ISD reductions for inheritances — and design the optimal strategy case by case, particularly for HNW profiles with significant assets on the island.

  • The Beckham Law applies a flat 24% rate on Spanish-source income up to 600,000 euros for up to 6 years (relocation year + 5 following).

  • The tax saving versus general Balearic IRPF (marginal rate up to 47–48%) can exceed 100,000–250,000 euros annually for C-level executives and HNW professionals with high compensation packages.

  • Eligible in Mallorca

    relocated executives, remote workers for foreign companies (especially the German/British/Dutch community), self-employed with international clients, highly qualified professionals in innovative companies, directors and certified entrepreneurs.

  • Strict 6-month deadline from Social Security registration to file Form 149 — there is no second chance.

How we work

From first contact to case completion

  1. HNW eligibility assessment

    We analyse whether you meet the requirements of the Beckham Law in its version reformed by Law 28/2022 on Startups: not having been a Spanish tax resident in the five years prior to arrival, and having relocated for one of the eligible reasons (employment contract with a Spanish company or relocation by a foreign group company, director of a Spanish company, certified entrepreneurial activity, highly qualified professional in an innovative company, or remote telework for a foreign company). For HNW profiles, we model the estimated saving under the special regime versus general Balearic IRPF and plan the Wealth Tax in parallel.

  2. Coordination of tax exit from home country

    For German professionals we coordinate the tax exit from Germany (Wegzugsteuer § 6 AStG with 7-year deferral for EU movements), for British nationals we manage the exit from the UK post-Brexit (split-year, HMRC P85), for Dutch nationals the conserverende aanslag, for French nationals the exit-tax art. 167bis CGI with 15-year deferral for EU movements. Optimal relocation calendar to minimise overlapping obligations in both jurisdictions.

  3. Application before the AEAT

    We prepare and file the special regime application with the Tax Agency (Balearic Islands Delegation) via Form 149, within the six months following Social Security registration. We manage all communication with the AEAT until obtaining the favourable resolution.

  4. Annual management and integrated wealth planning

    During the up to six years the regime is in force, we file your annual return as an impatriate (Form 151), manage withholdings, coordinate the Balearic Wealth Tax declaration where applicable, and plan the transition to general IRPF for year 7. For family offices, we integrate the planning with management of holding companies and generational succession.

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The problem

Mallorca and the Balearic Islands concentrate one of the densest HNW foreign communities in Spain — the German community in Calvià, Andratx, Pollença, Santanyí and the Pla area; the historic British community in the centre and south; high-earning remote professionals who have settled since the pandemic; superyacht owners based in Palma; family offices centralising wealth management in Mallorca because of the quality of life and connectivity. Many of these professionals do not know they can be taxed at a flat 24% for up to 6 years instead of the progressive IRPF scale — or they know the regime but do not apply within the 6-month deadline, or they do not correctly coordinate their exit from the home country. Additionally, the Balearic Islands maintain Wealth Tax without significant regional bonuses — a critical factor for HNW impatriates with premium real estate on the island.

Our solution

At BMC we advise executives, founders, C-level executives, high-earning liberal professionals and family offices relocating to Mallorca on the applicability of the Beckham Law, coordination with their home country, the application process before the AEAT and the annual management of the regime. We know the Balearic tax peculiarities — the regional IRPF rate, the Wealth Tax without bonus, ISD reductions for inheritances — and design the optimal strategy case by case, particularly for HNW profiles with significant assets on the island.

Process

How we do it

1

HNW eligibility assessment

We analyse whether you meet the requirements of the Beckham Law in its version reformed by Law 28/2022 on Startups: not having been a Spanish tax resident in the five years prior to arrival, and having relocated for one of the eligible reasons (employment contract with a Spanish company or relocation by a foreign group company, director of a Spanish company, certified entrepreneurial activity, highly qualified professional in an innovative company, or remote telework for a foreign company). For HNW profiles, we model the estimated saving under the special regime versus general Balearic IRPF and plan the Wealth Tax in parallel.

2

Coordination of tax exit from home country

For German professionals we coordinate the tax exit from Germany (Wegzugsteuer § 6 AStG with 7-year deferral for EU movements), for British nationals we manage the exit from the UK post-Brexit (split-year, HMRC P85), for Dutch nationals the conserverende aanslag, for French nationals the exit-tax art. 167bis CGI with 15-year deferral for EU movements. Optimal relocation calendar to minimise overlapping obligations in both jurisdictions.

3

Application before the AEAT

We prepare and file the special regime application with the Tax Agency (Balearic Islands Delegation) via Form 149, within the six months following Social Security registration. We manage all communication with the AEAT until obtaining the favourable resolution.

4

Annual management and integrated wealth planning

During the up to six years the regime is in force, we file your annual return as an impatriate (Form 151), manage withholdings, coordinate the Balearic Wealth Tax declaration where applicable, and plan the transition to general IRPF for year 7. For family offices, we integrate the planning with management of holding companies and generational succession.

24%
Beckham Law flat rate up to 600,000 euros
6 years (relocation year + 5 following)
Maximum duration of the special regime
6 months
Deadline to apply from Social Security registration

I moved from Hamburg to Andratx after selling my stake in a German scale-up. My Hamburg tax advisor managed the Wegzugsteuer with EU deferral, and BMC handled Beckham from day one — Form 149 on time, Balearic Wealth Tax management, all coordinated. The tax saving versus general Balearic IRPF exceeded 75,000 euros in the first year.

Klaus Bergmann Ex-founder / investor, Hamburg — Andratx, Mallorca

Beckham Law in Mallorca: the optimal regime for HNW impatriates in the Balearics

Since the reform introduced by Law 28/2022 on Startups, Mallorca has consolidated itself as one of Europe’s premium destinations for HNW professionals combining quality of life + tax advantage. The island offers the special impatriate regime to professionals relocating from Germany, the United Kingdom, the Netherlands, France, Switzerland or any other country, with the added attraction of an established expat community, excellent international connectivity and established premium services.

BMC advises executives, founders, C-level executives, yacht owners based in Palma, family offices and high-earning liberal professionals relocating to Mallorca, with deep knowledge of Balearic tax peculiarities — the regional IRPF rate, the Wealth Tax without bonus, ISD reductions for inheritances — and experience in coordinating with the tax exit from the home country (German Wegzugsteuer, French exit-tax, Dutch conserverende aanslag, British split-year).

Who can benefit from the Beckham Law in Mallorca

  • Executives relocated by multinationals: especially in tech, financial, luxury tourism and professional services sectors with a regional base in the Balearics.
  • High-earning remote workers: German, British, Dutch, French and American tech professionals who have chosen Mallorca as their post-pandemic base, maintaining employment with a foreign company exclusively via telematic means.
  • Founders and directors of emerging companies: entrepreneurs who incorporate or join a Spanish company certified as an emerging company by ENISA.
  • Family offices and wealth managers: professionals relocating to manage significant wealth centralised in Mallorca, frequently coordinating with yachts, properties and companies in multiple jurisdictions.
  • Liberal professionals with international clients: architects, designers, international lawyers, strategy consultants with a global portfolio and an operational base in Palma or premium areas of the island.

The Balearic factor: IRPF + Wealth Tax + ITSGF

The Balearic Islands applies one of the highest regional IRPF rates in Spain. Combined with the national rate, the marginal rate on employment income reaches 47–48% for income above 300,000 euros, versus the flat 24% of the Beckham Law up to 600,000 euros (47% above).

More relevant for the island’s HNW profile: the Balearic Islands maintains Wealth Tax without significant regional bonus (rate 0.28% to 3.45%), among the highest in Spain. For impatriates with a villa in Andratx valued at 5 million euros or a superyacht registered under Spanish flag, Balearic Wealth Tax is a material component of planning.

Additionally, net assets above 3 million euros are subject to the national Solidarity Tax on Large Fortunes (ITSGF), which applies regardless of regional bonuses.

Under the Beckham Law, the impatriate is taxed as a non-resident for IRPF — Balearic Wealth Tax then applies only to assets located in Spain (not worldwide wealth). This combination of Beckham + Balearic Wealth Tax on only Spanish assets can generate material differences in wealth planning versus the general regime.

The six-month window: why timing is everything

The deadline to apply for the special impatriate regime is six months from the date of Spanish Social Security registration. There is no extension or second attempt.

For HNW professionals relocating to Mallorca with complex asset structures — companies in the home country, yachts with international jurisdiction, established family office — the risk of missing the deadline is real. Advance planning must coordinate:

  • The tax exit from the home country (timing of cessation of residence)
  • Spanish Social Security registration (does not necessarily coincide with physical arrival)
  • Filing Form 149 within the 6-month deadline from SS registration

BMC operates with a “Form 149 by month 4–5” schedule to guarantee capture of the regime, leaving margin to resolve any AEAT requests.

Coordination with the tax exit from the home country

Each home country nationality has its own exit-tax or equivalent regime:

  • Germany: Wegzugsteuer § 6 AStG for shareholdings >1% — interest-free deferral 7 years for EU movements (Spain qualifies)
  • France: exit-tax art. 167bis CGI for shareholdings >50% or portfolios >800k euros — 15-year deferral for EU movements
  • Netherlands: conserverende aanslag for aanmerkelijk belang (≥5%) — 10-year deferral for moves to treaty country
  • United Kingdom: post-Brexit no direct exit tax but split-year planning + CGT crystallisation
  • United States: citizenship-based taxation continues — coordination FBAR + FATCA + Form 720

BMC coordinates the tax exit with the home country advisor + integrated Spanish entry under Beckham.

Typical case: German executive with 500,000 euro compensation package

Klaus, a 48-year-old German C-level executive, moves from Hamburg to Andratx. Spanish entity compensation package: 500,000 euros.

Without Beckham (general Balearic IRPF): combined tax bill approximately 215,000 euros (effective rate ~43%).

With Beckham: flat tax 24% × 500,000 = 120,000 euros.

Annual saving: 95,000 euros. Accumulated saving over the 6 years of the regime: 570,000 euros.

Additionally: under Beckham, dividends from his residual shareholding in the German scale-up (foreign-source) are NOT taxed in Spain; under general IRPF they would be taxed on the savings base (19–28%).

Exiting the regime: planning the transition to year 7

The special impatriate regime has a maximum duration of six years. When the taxpayer exits the regime, they revert to ordinary resident status under general Balearic IRPF, with all implications: taxation on worldwide income, marginal rate up to 48%, reactivation of reporting obligations (Forms 720, 721, Balearic Wealth Tax on worldwide assets).

For HNW professionals with significant assets, exit planning is critical. Decisions to evaluate in advance include:

  • Realisation of unrealised gains on foreign assets before the regime change
  • Restructuring of shareholdings in foreign companies
  • Potential relocation to another autonomous community with more favourable taxation (Madrid 99% Wealth Tax bonus, Andalusia similar)
  • Leaving Spain for jurisdictions with favourable tax regimes (Portugal new NHR, Italy flat tax, Monaco, etc.)

BMC starts exit planning in year 5 of the regime to optimise the transition.

The Beckham Law and dividends from foreign companies

Under the Beckham Law, the taxpayer is taxed in Spain only on Spanish-source income. Dividends from foreign companies are generally treated as foreign-source income and are not taxed in Spain during the regime period.

For HNW impatriates with shareholdings in holding companies in the home country (typical for German ex-founders or British executives with completed vesting), this can represent a material advantage. Exceptions to analyse case by case:

  • Transparent companies under CFC rules (Art. 91 LIRPF)
  • Permanent establishment in Spain (effective management from Mallorca)
  • Classification of income as Spanish-source due to actual economic origin

BMC in Mallorca: local presence + international reach

BMC operates with coverage for HNW clients resident in Mallorca, with bilingual Spanish/English/German team and coordination with advisors in the home country (Steuerberater in DACH, expert-comptable in France, belastingadviseur in the Netherlands, accountants in the UK, CPAs in the US).

For the typical HNW Mallorca profile — international executive, founder, yacht owner, family office — BMC’s offering integrates:

  • Beckham Law setup + annual management
  • Balearic Wealth Tax + ITSGF planning
  • Form 720 exemption during regime + reactivation year 7
  • Integrated succession planning (Spain + home country)
  • Coordination with home country tax advisor
  • Yacht / family office structure if applicable

Request an initial consultation to assess the applicability of the Beckham Law to your specific Mallorca relocation profile.

BMC has a representation in Baleares. See our Baleares representation for local support.

What comes next

FAQ

Frequently asked questions

Mallorca combines several factors that make it optimal for HNW impatriates: (1) quality of life + climate + personal security frequently identified as top-3 in European rankings; (2) international connectivity with direct flights to 60+ European cities + operational base for superyachts in Palma; (3) established expat community (German in areas like Andratx/Calvià/Pollença, historic British in the centre, high-earning remote professionals post-pandemic); (4) international schools (German Swiss School, British International School, King's College, Bellver International College); (5) established family offices centralising wealth management. The Beckham Law adds the tax factor: 24% flat for 6 years vs Balearic IRPF reaching 47–48% at high brackets. For an executive with a compensation package of 300,000–600,000 euros, the annual tax saving versus the general regime can exceed 80,000–150,000 euros.
It depends on the source of your income after the sale. If the sale has already taken place and the funds have transferred to your personal assets before the relocation, the Beckham Law can apply to your subsequent professional or business income in Spain — but NOT retrospectively to the sale gain. If you have not yet sold and are planning the relocation correctly, you can coordinate: (a) the tax exit from Germany with Wegzugsteuer § 6 AStG deferral (7 years for EU movements, Spain qualifies); (b) Spanish Social Security registration and Beckham application via Form 149 within the 6-month deadline; (c) the subsequent sale of the stake under the Beckham regime where, as foreign-source income (the German company), the gain may fall outside Spanish taxation during the regime period. This planning is highly sensitive to timing and requires coordination with your German Steuerberater before the relocation.
The Balearic Islands is one of the autonomous communities that maintains Wealth Tax without significant regional bonus. The general personal allowance is 700,000 euros and the progressive rate goes from 0.28% to 3.45% (among the highest rates in Spain alongside Catalonia). Under the Beckham Law, the taxpayer is treated as a non-resident for IRPF purposes, which for Wealth Tax means that only assets located in Spain are taxed — not worldwide wealth. For impatriates with a high-value villa in Mallorca (typically villas in Andratx, Pollença, Santanyí, Banyalbufar exceed 3–10 million euros), shareholdings in Spanish companies or yachts registered under Spanish flag, planning Balearic Wealth Tax is an essential component. Additionally, net assets above 3 million euros are subject to the national Solidarity Tax on Large Fortunes (ITSGF).
Yes, since the reform introduced by Law 28/2022 on Startups. Remote workers carrying out their activity at a distance for a foreign company or employer exclusively via telematic means can access the special impatriate regime, provided they have not been Spanish tax residents in the five years prior to arrival. Mallorca has become one of the preferred European destinations for high-earning remote workers post-pandemic, especially German, British, Dutch and French tech professionals with high compensation packages. BMC manages the regime application and coordination with the tax exit from the home country.
The situation of superyacht owners based in Palma operationally combines several tax components requiring coordination: (1) Yacht registration: if the yacht is registered under a non-Spanish flag (Cayman, Malta, Marshall Islands are common), use in Spain can generate Spanish VAT at 21% on the value of the yacht if it enters Spanish waters for more than 18 months under the Temporary Import Regime. (2) Charter activity: if the yacht is commercially chartered, charter income is subject to Spanish VAT or not depending on the owner's jurisdiction and applicable regime; the beneficial owner may be taxed on attributed income under controlled foreign company rules. (3) Beckham regime + superyacht: the special impatriate regime applies to the personal income of the owner-beneficiary, but does NOT exempt yacht income as a separate asset if there is economic activity. (4) Wealth Tax: the yacht located in Spanish waters for more than 6 months per year may be considered 'located in Spain' for Wealth Tax purposes. BMC advises with coordination between the yacht manager and the impatriate's personal structure.
For a professional with employment income of 400,000 euros per year taxed under general Balearic IRPF (ordinary resident), the combined national and regional tax bill is approximately 175,000–185,000 euros (effective rate 44–46%). Under the Beckham Law, the 24% flat rate on 400,000 euros produces a bill of 96,000 euros. The annual saving is approximately 79,000–89,000 euros, accumulating 470,000–535,000 euros over the six years of the regime. For C-level executives with compensation packages of 600,000–1,000,000 euros (common in family offices and international roles based in Mallorca), the annual tax saving can exceed 150,000–250,000 euros, with accumulated savings of 900,000 euros to 1.5 million euros over the six years. Additionally, under Beckham worldwide income is not included in the Spanish tax base — only Spanish-source income — which is particularly valuable for professionals with stock options, dividends from foreign companies or international consulting income.

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Frequently asked questions

Questions about Beckham Law in Mallorca: 24% flat tax for HNW impatriates in the Balearics

Mallorca combines several factors that make it optimal for HNW impatriates: (1) quality of life + climate + personal security frequently identified as top-3 in European rankings; (2) international connectivity with direct flights to 60+ European cities + operational base for superyachts in Palma; (3) established expat community (German in areas like Andratx/Calvià/Pollença, historic British in the centre, high-earning remote professionals post-pandemic); (4) international schools (German Swiss School, British International School, King's College, Bellver International College); (5) established family offices centralising wealth management. The Beckham Law adds the tax factor: 24% flat for 6 years vs Balearic IRPF reaching 47–48% at high brackets. For an executive with a compensation package of 300,000–600,000 euros, the annual tax saving versus the general regime can exceed 80,000–150,000 euros.
It depends on the source of your income after the sale. If the sale has already taken place and the funds have transferred to your personal assets before the relocation, the Beckham Law can apply to your subsequent professional or business income in Spain — but NOT retrospectively to the sale gain. If you have not yet sold and are planning the relocation correctly, you can coordinate: (a) the tax exit from Germany with Wegzugsteuer § 6 AStG deferral (7 years for EU movements, Spain qualifies); (b) Spanish Social Security registration and Beckham application via Form 149 within the 6-month deadline; (c) the subsequent sale of the stake under the Beckham regime where, as foreign-source income (the German company), the gain may fall outside Spanish taxation during the regime period. This planning is highly sensitive to timing and requires coordination with your German Steuerberater before the relocation.
The Balearic Islands is one of the autonomous communities that maintains Wealth Tax without significant regional bonus. The general personal allowance is 700,000 euros and the progressive rate goes from 0.28% to 3.45% (among the highest rates in Spain alongside Catalonia). Under the Beckham Law, the taxpayer is treated as a non-resident for IRPF purposes, which for Wealth Tax means that only assets located in Spain are taxed — not worldwide wealth. For impatriates with a high-value villa in Mallorca (typically villas in Andratx, Pollença, Santanyí, Banyalbufar exceed 3–10 million euros), shareholdings in Spanish companies or yachts registered under Spanish flag, planning Balearic Wealth Tax is an essential component. Additionally, net assets above 3 million euros are subject to the national Solidarity Tax on Large Fortunes (ITSGF).
Yes, since the reform introduced by Law 28/2022 on Startups. Remote workers carrying out their activity at a distance for a foreign company or employer exclusively via telematic means can access the special impatriate regime, provided they have not been Spanish tax residents in the five years prior to arrival. Mallorca has become one of the preferred European destinations for high-earning remote workers post-pandemic, especially German, British, Dutch and French tech professionals with high compensation packages. BMC manages the regime application and coordination with the tax exit from the home country.
The situation of superyacht owners based in Palma operationally combines several tax components requiring coordination: (1) Yacht registration: if the yacht is registered under a non-Spanish flag (Cayman, Malta, Marshall Islands are common), use in Spain can generate Spanish VAT at 21% on the value of the yacht if it enters Spanish waters for more than 18 months under the Temporary Import Regime. (2) Charter activity: if the yacht is commercially chartered, charter income is subject to Spanish VAT or not depending on the owner's jurisdiction and applicable regime; the beneficial owner may be taxed on attributed income under controlled foreign company rules. (3) Beckham regime + superyacht: the special impatriate regime applies to the personal income of the owner-beneficiary, but does NOT exempt yacht income as a separate asset if there is economic activity. (4) Wealth Tax: the yacht located in Spanish waters for more than 6 months per year may be considered 'located in Spain' for Wealth Tax purposes. BMC advises with coordination between the yacht manager and the impatriate's personal structure.
For a professional with employment income of 400,000 euros per year taxed under general Balearic IRPF (ordinary resident), the combined national and regional tax bill is approximately 175,000–185,000 euros (effective rate 44–46%). Under the Beckham Law, the 24% flat rate on 400,000 euros produces a bill of 96,000 euros. The annual saving is approximately 79,000–89,000 euros, accumulating 470,000–535,000 euros over the six years of the regime. For C-level executives with compensation packages of 600,000–1,000,000 euros (common in family offices and international roles based in Mallorca), the annual tax saving can exceed 150,000–250,000 euros, with accumulated savings of 900,000 euros to 1.5 million euros over the six years. Additionally, under Beckham worldwide income is not included in the Spanish tax base — only Spanish-source income — which is particularly valuable for professionals with stock options, dividends from foreign companies or international consulting income.
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