Beckham Law Victory: What the 2025 TEAC Ruling Means for Expats in Spain

At moviinn®, we guide global talent through the legal, tax, and practical challenges of relocating to Spain. That means staying on top of key legislative developments, and making sure our clients benefit from them.

One of the most significant updates in recent months comes from a new ruling by Spain’s Central Economic-Administrative Court (TEAC). In May 2025, TEAC delivered a major clarification regarding the Beckham Law, a special tax regime for international professionals relocating to Spain.

Thanks to a case led by Pastoriza Abogados, moviinn®’s trusted tax lawyers in Spain, inbound taxpayers now have even greater clarity on how their primary residence is treated under this tax regime. The outcome? A confirmed exemption from taxation on imputed rental income for those covered by the Beckham Law.

So, what exactly happened? Why is this ruling important? And most importantly, how can moviinn® help you benefit from this update? Let’s dive into the story and what it means for your relocation planning.

What Is TEAC and Why It Matters

TEAC stands for Tribunal Económico-Administrativo Central - Spain’s Central Economic-Administrative Court. It is a government body that reviews and resolves tax disputes between taxpayers and Spain’s Tax Agency (Agencia Tributaria).

While TEAC rulings don’t carry the same weight as Constitutional or Supreme Courts decisions, they are legally binding on the Tax Agency, and play a crucial role in guiding the interpretation of tax law in Spain.

When TEAC rules in favor of a taxpayer, it sets a precedent that can benefit thousands of others in similar situations, especially those navigating Spain’s more complex tax regimes, such as the Beckham Law.

The Beckham Law: A Powerful Tax Incentive for International Professionals

Spain’s Special Regime for Inbound Taxpayers, known as the Beckham Law, is designed to attract foreign professionals by offering a favorable tax treatment during their first years in the country.

If you qualify, you are taxed under the rules of the Non-Resident Income Tax (NRIT), despite being physically resident in Spain. This means:

• Flat Tax Rate: 24% on Spanish-sourced employment income up to €600,000, and 47% on amounts above that.
• Only Spanish Income is Taxed: Your worldwide income is exempt from Spanish tax.
• Six-Year Duration: The regime applies in your first year of tax residency and the following five years.

It’s a compelling framework for executives, remote employees, digital nomads, and startup founders who want to establish a life in Spain while optimizing their tax exposure.

But until this recent TEAC ruling, a major grey area remained: how does the regime treat imputed income on a taxpayer’s habitual residence?

Understanding Imputed Income and the Legal Ambiguity

Under Spain’s general Personal Income Tax Law (LIRPF), homeowners must declare a fictional income, called imputed rental income, on properties that are not rented out. This income is taxable, even if you don’t receive a single euro in rent.

However, if the property is your habitual residence, you are exempt from this rule. The law does not require you to pay tax on the imputed revenue deriving from the value of the home you live in.

Here’s where the confusion started.

The Beckham Law changes how income is taxed and which income is subject to tax. But it didn’t explicitly state whether Beckham Law taxpayers could claim the exemption for imputed income on their habitual residence. This left many expats unsure, should they declare and pay tax on fictional rental income from the home they live in?

The TEAC 2025 Decision: Clarity for Beckham Law Taxpayers

In a landmark decision from May 2025, TEAC ruled that taxpayers under the Beckham Law are entitled to the same exemption from imputed income as regular residents. The case was successfully argued by Pastoriza Abogados, moviinn®’s expert tax law partners in Spain.

In this case, TEAC clarified that:

While the Beckham Law allows foreign professionals to be taxed under the NRIT rules, they remain subject to the general structure of the Personal Income Tax Law (LIRPF). That includes all benefits and exemptions applicable under that law, unless specifically stated otherwise.

This ruling was supported by the High Court of Justice of Madrid, which had previously emphasized in its 2024 decision (Case No. 685/2022) that:

“Article 93 of the PITL allows for taxation under NRIT rules, but it does not exclude taxpayers from their broader status as PIT taxpayers. It simply modifies the tax base and applicable rates.”

This means that if you own and live in a home in Spain while under the Beckham Law, you are not required to pay tax on its imputed rental value.

Why This Matters for Expats in Spain

This is a major win for any foreign professional planning to relocate to Spain or already living in the country under the Beckham Law. Here's why:

• You can own your primary residence in Spain without triggering a tax on fictional income.
• The exemption applies automatically if the property is your habitual home.
• You avoid unnecessary tax filings and liabilities, freeing up time, energy, and resources.

If you are buying property in Spain under this regime, this clarity provides a strong legal foundation for making confident investment decisions.

Buying a Home in Spain While Benefiting From the Beckham Law

At moviinn®, we work with professionals relocating to Spain who not only want to optimize their tax setup, but also find the perfect home for their lifestyle. From central apartments in Madrid and Barcelona to seaside villas in Valencia or the Balearic Islands, we help our clients understand where to live, what to buy, and what it means for their residency status.

Thanks to the 2025 TEAC ruling, owning your primary home in Spain is now legally compatible with the tax benefits of the Beckham Law. There is no need to choose between owning your home and maintaining your special tax status.

How moviinn® Supports Beckham Law Taxpayers

Whether you're preparing to move or already living in Spain, moviinn® is here to make your relocation successful from day one. Our approach includes full support across legal, tax, real estate, and integration matters, all coordinated with our trusted experts.

Tax Eligibility and Registration

We begin by helping you determine if you qualify for the Beckham Law and guide you through the application process. Timing is critical, you must apply within six months of registering with Spanish Social Security, so our experts ensure nothing falls through the cracks.

Personalized Home Search Services

Our relocation specialists help you choose the right city, neighborhood, and property for your needs. Whether you want to live near your office, international schools, coworking hubs, or cultural districts, we provide curated listings and expert support through the entire home search process.

Legal Review and Property Purchase Assistance

With our legal partners, we conduct due diligence on any property you’re considering. We help you understand the contract terms, your rights as a foreign buyer, and your tax obligations under Spanish law.

Ongoing Tax and Legal Compliance

Once you’re living in Spain, our team ensures you remain compliant year after year. That includes annual tax filings, residency renewals, and adapting to new legislative changes, like this latest TEAC ruling.

Common Questions About the Beckham Law

Does this ruling mean I can own a home and still benefit from the Beckham Law?
Yes. The TEAC ruling confirms you can own your habitual residence in Spain without being taxed on imputed rental income.

What if I bought my home before applying for the Beckham Law?
As long as the property is your habitual residence, the exemption should still apply. We recommend a tax consultation to ensure your situation is documented correctly.

Can moviinn® help me apply for the Beckham Law and buy a home at the same time?
Absolutely. We coordinate your tax registration, home search, property acquisition, and administrative setup, all tailored to your needs.

What happens after the six years under the Beckham Law?
You will become a regular Spanish tax resident and will be taxed on your worldwide income. Our team can help you plan for this transition in advance.

Conclusion: A Legal Win That Benefits Global Talent

The 2025 TEAC ruling represents a new level of certainty and fairness in Spain’s tax framework for expats. By confirming that the habitual residence exemption applies to Beckham Law taxpayers, it empowers more people to make confident decisions about where they live, how they invest, and how they structure their new life in Spain.

At moviinn®, we are proud to have supported this victory through our legal partners at Pastoriza Abogados. And we’re here to help you apply these insights to your own relocation journey.

Ready to Move Forward?

• Confirm your eligibility for the Beckham Law
• Secure your habitual residence with tax peace of mind
• Navigate Spain’s tax and legal systems with confidence

Book your free consultation today and start building your life in Spain the right way:
 
Let moviinn® handle the details, so you can focus on the experience.