The Beckham Law, approved in 2005, was created to place Spain — and particularly destinations such as Mallorca — on the map for international professionals. This special regime allows expatriates to be taxed as non-residents under the IRNR, applying a reduced rate and only on income generated in Spain.
In theory, it was a fiscal incentive designed to attract talent. However, over the years, what started as an advantage has turned into a source of legal uncertainty and tax disputes, directly affecting expatriates who choose Mallorca as their home.
The core conflict: the main residence
The most controversial issue lies in the main residence.
- Under the general IRPF regime, the main residence is exempt from taxation.
- Under the Beckham Law, however, the Spanish Tax Agency requires expatriates to pay taxes on imputed income from their own homes, a criterion many experts consider discriminatory.
Case law in favor of taxpayers
At first, the Madrid High Court of Justice (TSJM) ruled in favor of expatriates, stating that since they are tax residents in Spain, they should enjoy the same exemption as any other Spanish taxpayer.
It seemed that the courts had settled the matter — but not for long.
The shift in Hacienda’s stance and the TEAC ruling
In 2025, the Central Economic-Administrative Court (TEAC) — under the Ministry of Finance — issued the opposite view: those covered by the Beckham Law must comply with all IRNR rules, including the taxation of their main residence.
This reversal not only contradicted earlier case law but also increased legal uncertainty, leaving taxpayers vulnerable to shifting interpretations by the Administration.
Rising tax revenues and European scrutiny
The Spanish Tax Agency’s tougher stance coincides with a sharp rise in revenue:
- In 2024, IRNR revenues grew by 25.4%.
- In the first half of 2025, the increase already reached 36.9%.
The European Commission has taken notice, opening a formal proceeding against Spain for discriminatory tax treatment. The main residence issue is cited as one of the main obstacles to the free movement of workers and capital. If Spain fails to act, the matter could end up before the Court of Justice of the European Union.
Consequences for expatriates in Mallorca
Mallorca remains one of the top destinations for international professionals. Yet the legal uncertainty surrounding the Beckham Law is becoming a deterrent for those considering relocation.
Unclear rules on main residence taxation, conflicting court and administrative decisions, and scrutiny from Brussels create a complex landscape that threatens Spain’s competitiveness as an investment destination.
The key question is whether Spain will prioritize short-term tax collection or reinforce its reputation as a secure and reliable place for international talent.
Resitax: specialists in the Beckham Law in Mallorca
In this context, having a specialized advisory firm is essential.
At Resitax, we are experts in the Beckham Law in Mallorca, helping expatriates and international executives with:
- Reviewing their taxation under the special regime.
- Assessing risks and applying available exemptions.
- Defending their rights against shifting tax interpretations.
- Designing safe, tailored strategies to protect their wealth.
If you live in Mallorca or are planning to move here, Resitax can help you understand how the Beckham Law affects you and ensure that your decisions are backed by legal security.
