Can I Keep the Special Expats Regime if I Become Self-Employed?

 

Spain’s Special Expats Regime—commonly known as the Beckham Law—offers very attractive tax advantages to professionals who relocate to Spain for work. The main benefits include paying tax as a non-resident for six years, applying a flat 24% tax rate up to €600,000 per year, and not being required to file the 720 form or pay Wealth Tax.

But what happens if someone under this regime quits their job and becomes self-employed? Can they still benefit from the same tax treatment?

Basic requirements

To qualify for this regime, the following conditions must be met:

• You must not have been a Spanish tax resident during the last 5 years.

• Your relocation must be linked to an employment contract, an entrepreneurial project, or services provided to a startup.

• You must not generate income through a permanent establishment in Spain, except in specific cases.
   

What if I switch to freelance work?

A common situation is when a professional relocates to Spain under a work contract, opts into the regime, and later decides to become self-employed.

Spain’s Tax Authority (DGT) has clarified that leaving your initial job does not automatically disqualify you—as long as you start a new employment relationship with an unrelated company.

However, if you start an economic activity on your own, the conditions change significantly.

When can the regime be maintained as a freelancer?

You can only continue under the regime if your self-employed activity falls into one of these three categories:

• An innovative entrepreneurial project.

• Services provided to a Spanish startup.

• Activities related to training, research, development, or innovation.
   

Outside of these scenarios, income generated through a permanent establishment in Spain will result in immediate exclusion from the regime in that same tax year.

Switching from salaried employee to self-employed while under the Special Expats Regime isn’t always possible. It depends on the nature of your new activity. It’s essential to assess your situation carefully before making any changes. At Valero Tax Legal, we help you evaluate your case and plan your transition with full legal certainty and peace of mind.