Spain's Beckham Law vs Andorra: Why 24% for 6 Years Loses to 10% Forever

Spain’s Beckham Law is the country’s best pitch to international talent: move here, pay a flat 24% on your Spanish income for six years, and keep your foreign earnings tax-free. Named after footballer David Beckham — who used it when he joined Real Madrid in 2003 — the regime has attracted thousands of executives, athletes, and more recently, digital nomads.

On paper, 24% sounds reasonable. Compared to Spain’s standard progressive rates that climb to 47% (or 54% in some regions), it’s a genuine saving. But there’s a question almost nobody asks loudly enough: what happens in year seven?

The answer is brutal. After six years, you fall off a cliff. You revert to standard Spanish tax residency: progressive rates up to 47-54%, worldwide taxation on all income, wealth tax on global assets, and inheritance tax that can reach 34%. And if you try to leave at that point, Spain’s exit tax on unrealised capital gains may catch you on the way out.

Two hundred kilometres north, Andorra charges a maximum 10% income tax. No expiration date. No cliff. No wealth tax. No inheritance tax. Ever. For a full side-by-side breakdown of every tax category, see our Andorra vs Spain tax comparison.

This article compares both regimes — honestly, with real numbers — so you can decide which one actually makes sense for your situation.

How the Beckham Law Works in 2026

The Special Tax Regime for Inbound Workers (its official name) allows qualifying individuals to be taxed as non-residents while living in Spain. The key features:

Tax rate: Flat 24% on Spanish-sourced employment income up to €600,000 per year. Income above €600,000 is taxed at 47%.

Duration: 6 tax years (the year of arrival plus 5 subsequent years). Non-renewable.

Foreign income: Exempt from Spanish taxation. Dividends, rental income, and capital gains from foreign sources are not taxed in Spain during the regime.

Wealth tax: Only applies to Spanish-located assets, not worldwide holdings.

Eligibility: You must not have been a Spanish tax resident in the last 5 years. You must relocate for employment (Spanish employer, international assignment, or — since 2023 — Digital Nomad Visa holders employed by foreign companies). Self-employed individuals are largely excluded unless certified as “innovative” entrepreneurs.

Application deadline: Within 6 months of starting work in Spain. Miss it, and you’re on standard rates retroactively.

Family: Spouse and children under 25 can also benefit if they relocate together.

How Andorra Works in 2026

Andorra’s tax system is simpler and has no expiration:

Income tax (IRPF): Progressive but capped at 10%. First €24,000 exempt. €24,001–€40,000 at 5%. Above €40,000 at 10%.

Corporate tax (IS): Flat 10%. Reduced to 5% for profits under €50,000.

Dividends: 0% when distributed from an Andorran company to a resident shareholder.

Wealth tax: 0%. Does not exist.

Inheritance tax: 0%. Does not exist.

VAT (IGI): 4.5% — the lowest in Europe.

Social security (CASS): Approximately 22% of a base salary (employer + employee combined). Covers healthcare and pension. See our full CASS guide for a detailed breakdown of contributions and coverage.

Duration: Permanent. No expiration, no cliff, no regime change.

Eligibility: Active residency requires owning at least 34% of an Andorran company, a €50,000 deposit with the AFA (non-refundable since Omnibus 2, January 2026), and spending 183+ days per year in Andorra. Works for employees, self-employed, and company owners equally.

The Year-by-Year Comparison

Here’s where the Beckham Law’s time bomb becomes visible. Let’s take a business owner/executive earning €200,000 per year:

Years 1–6: Beckham Law Looks Good

Concept	Beckham Law (Spain)	Andorra
Income tax	24% flat = €48,000	~€19,600 (effective ~9.8%)
Wealth tax (€2M global assets)	€0 (foreign assets exempt)	€0
Foreign dividends (€30,000)	€0 (exempt)	10% above €3,000 = ~€2,700
Inheritance exposure	Only Spanish assets	€0

During the Beckham years, Spain taxes more on income (€48,000 vs ~€19,600) but exempts foreign income. For someone with large foreign earnings and minimal Spanish income, Beckham can be competitive. For most people earning primarily from work, Andorra wins every year — even during the “good” Beckham years.

6-year income tax difference on €200,000/year salary: Beckham pays €288,000. Andorra pays ~€117,600. Andorra saves €170,400 over the Beckham period alone.

Year 7 Onwards: The Cliff

Concept	Spain (post-Beckham)	Andorra
Income tax (€200,000)	~€70,000–€80,000 (45–47% marginal)	~€19,600
Wealth tax (€2M global)	€5,000–€15,000/year (varies by region)	€0
Foreign dividends (€30,000)	€5,700–€8,400 (19–28%)	~€2,700
Inheritance (€2M estate)	€150,000–€680,000 (7.65–34%)	€0

The post-Beckham reality is devastating. Your income tax roughly triples. Wealth tax appears for the first time — on worldwide assets. Foreign income that was exempt is now fully taxable. And your entire global estate enters Spain’s inheritance tax net.

Annual difference from year 7: Spain charges ~€80,000–€100,000+ in combined taxes. Andorra charges ~€22,000. That’s €58,000–€78,000 more per year, every year, with no end.

The Exit Trap

Here’s what makes the Beckham Law genuinely problematic for long-term planning: leaving Spain after your 6 years isn’t clean.

Exit tax (Impuesto de Salida): If you hold shares or assets worth over €4 million, or own more than 25% of a company worth over €1 million, Spain taxes the unrealised capital gains when you deregister as a tax resident. You haven’t sold anything — you just owe tax on paper gains.

10-year IHT tail (new from 2025/2026): Under the new residence-based inheritance tax rules, if you’ve been a long-term resident (10 of the last 20 years), Spain’s inheritance tax follows you for up to 10 years after departure.

Deregistration obligations: Modelo 030, AEAT notification, proving you’ve genuinely relocated (not just renting an Andorran apartment while spending weekends in Barcelona).

Someone who enters Spain under Beckham at age 35, stays the 6 years, then tries to move to Andorra at 41, faces a complex and potentially expensive exit. Someone who goes directly to Andorra at 35 faces none of this. Our complete guide for freelancers and digital nomads moving to Andorra covers the setup process step by step. For a full breakdown of Spain’s exit tax and the mandatory investigation regime for Spanish residents declaring Andorran residency, see our guide to moving from Spain to Andorra.

Who Beckham Actually Works For

The Beckham Law isn’t bad for everyone. It genuinely makes sense if:

You’re an employee relocated by a multinational for a fixed assignment (2–5 years) and you plan to leave Spain before year 7. The company handles compliance, and you benefit from both the 24% rate and foreign income exemptions.
You have massive foreign passive income (€500K+ in foreign dividends, rental income, capital gains) with a relatively small Spanish salary. The foreign exemption is the real prize, not the 24% rate.
You don’t plan to stay long-term and you have no significant Spanish assets that would trigger exit complications.

Who Should Go Directly to Andorra

Andorra is the better choice if:

You’re self-employed or own a business. Beckham largely excludes you anyway. Andorra welcomes you with 10% IS + 0% dividends.
You’re planning to stay longer than 6 years. The math is overwhelming once you factor in post-Beckham rates.
You care about wealth and inheritance planning. Zero wealth tax and zero inheritance tax, permanently, is impossible to replicate in Spain.
You want simplicity and certainty. Andorra’s tax code fits in a pamphlet. Spain’s fills a library. The compliance burden alone — Modelo 720 worldwide asset declaration, regional variations, changing solidarity surcharges — is a cost Beckham users still bear.
You earn €60,000–€600,000 primarily from work. In this range, Andorra’s 10% max beats Beckham’s 24% every single year.

The Numbers Don’t Lie

Over a 10-year horizon, for someone earning €200,000/year:

	Beckham (6 yrs) + Standard Spain (4 yrs)	Andorra (10 yrs)
Income tax	€288,000 + ~€300,000 = €588,000	€196,000
Wealth tax (€2M assets)	€0 + ~€40,000 = €40,000	€0
Total	~€628,000	~€196,000

Difference: €432,000 over 10 years. That’s not a rounding error. That’s a house in Andorra.

And this doesn’t include the inheritance tax exposure, the exit tax risk, or the compliance costs of managing a far more complex tax situation in Spain.

Conclusion

The Beckham Law is a temporary discount on a permanently expensive system. It attracts you with a headline rate, gives you six good years, then switches to one of the highest tax regimes in the OECD — and makes it complicated to leave.

Andorra is a permanent 10%. No tricks, no expiration, no cliff. It works for employees, self-employed, and company owners. It has no wealth tax, no inheritance tax, and a cost of living that’s comparable to Barcelona.

The question isn’t whether 24% is better than 47%. It’s whether 24% for six years is better than 10% forever. The maths answers that question clearly.

Calculate your exact tax comparison between Andorra and Spain — including Beckham Law scenarios — with our free calculator.

This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax obligations vary by individual circumstances, income structure, and residency status. Always consult a qualified tax professional before making relocation decisions.

Sources: Spanish Income Tax Act (Ley 35/2006, Art. 93), Startup Law (Ley 28/2022), Royal Decree 687/2005, Govern d’Andorra, Llei 5/2014 (IRPF), Llei 95/2010 (IS), Omnibus 2 Law (January 2026), AEAT, Tax Foundation ITCI 2025.