Beckham Law withholding: 24%, 47% and payroll errors

Beckham Law withholding on employment income follows a specific rule. The general rate is 24%. When the same payer pays more than €600,000 during the calendar year, 47% applies to the excess. A high salary does not, on its own, justify applying 47% to every payment.

DGT ruling V1971-25 of 17 October 2025 examined an employer’s switch from 24% to 47%. The employee expected annual pay to remain below the threshold. On the figures supplied, the DGT said the correct rate should have been 24%.

Pérez Parras Economists and Lawyers reviews payroll, election certificates and annual returns under the regime. Our Beckham Law service in Spain can help you check a change in deductions and assess the correction required.

Beckham Law withholding at 24%

Article 114.3 of the Income Tax Regulations sets the employment withholding rate at 24%. It also provides for 47% on the amount above the annual threshold paid by the same payer.

Start by confirming that the special regime applies to the employee. Then check the type of income and the amount subject to withholding. Business income, savings income and exclusion from the regime raise different questions.

This guide deals with employment income subject to that rule. It does not replace a review of every item in a complex pay package.

When does Beckham Law withholding reach 47%?

There are three key points: the same payer, the calendar year and the amount above €600,000. The threshold is not monthly. Nor does crossing it make all earlier pay subject to 47%.

The AEAT guidance on the impatriate regime sets out the same rule. Check the accumulated payments rather than judging the rate from a single payslip.

• Up to €600,000 paid by the same payer in the calendar year: 24%.
• On the part above €600,000: 47%.
• With several payers: review each payer’s deductions and the final annual tax calculation.

A bonus or a change of employer may therefore need a closer check. Identify who pays each amount and when.

What ruling V1971-25 says about withholding

The employee stated that he was within the special regime. His employer had withheld 24% until April 2025. From May, it applied 47%, although he reported no relevant change in his personal or work circumstances.

He stated that the company had paid €186,430.01 from January to July 2025. He also expected full-year pay to remain well below €600,000.

The DGT concluded that the rate should have been 24% on the figures given. It relied on Article 93.2.f of the Income Tax Law and Article 114.3 of the Regulations.

However, the ruling addresses the rate in that case. It does not create a single refund procedure for every payroll error. The correction route depends on the records, the tax year and the stage reached.

Beckham Law withholding examples

A payment of €10,000 subject to withholding

Assume the full payment falls under this employment income rule. The employee validly uses the regime and the payer has not crossed the annual threshold. At 24%, the amount withheld would be €2,400.

Applying 47% would instead deduct €4,700. The difference is €2,300 for that payment. This affects the cash the employee receives.

The example compares withholding only. It does not calculate total take-home pay, social security deductions or the Form 151 result.

One payer pays €650,000 in the calendar year

Assume all payments are employment income subject to this rule and belong to the same calendar year. The calculation would be:

• €600,000 at 24%: €144,000.
• The €50,000 excess at 47%: €23,500.
• Total withholding in this example: €167,500.

The 47% rate would not apply to the full €650,000. A real payroll review must also reconcile the payment dates, income items and deductions already made.

Two employers pay the same employee

The payroll threshold refers to each payer. The annual return, however, calculates the person’s tax under the regime using all income that must be included.

Correct deductions by separate employers do not guarantee a nil balance or a refund on Form 151. Estimate the year-end result when changing jobs or receiving income from several sources.

How to prove your status for Beckham Law withholding

The AEAT certificate shows that you have elected into the regime. Article 119.4 of the Regulations provides for a copy to be given to the party that must withhold tax.

Check whether HR or the payroll provider has that certificate. Keep evidence of delivery and review the date from which payroll used the correct treatment.

Form 149, the AEAT certificate and Form 151 serve different purposes. The first communicates the election, the certificate provides evidence of the regime, and Form 151 is the annual return.

How to review a Beckham Law withholding error

Check the regime and the affected tax year

Review the election, the certificate and the year involved. Establish whether there has been withdrawal, exclusion or another change in status. A payslip alone does not answer those questions.

Gather the payroll records

List the payments made by each employer and their dates. Include salary, bonuses and other employment items. Compare the withholding bases, rates and sums deducted.

A foreign bonus or deferred compensation also requires a review of its source and the work period involved. The date cash reaches your account does not settle the whole tax analysis.

Reconcile the figures with the employer

Prepare a clear explanation of the difference and evidence of your status. The employer can then review its payroll treatment and any returns that may need correction.

Keep the reply and the revised documents. Check that payslips, the annual certificate and your own return tell a consistent story.

Choose the correction route and review Form 151

Establish whether the problem concerns the current year or a return already filed. Check whether the withheld amounts were paid over and whether the AEAT has opened a procedure.

The response may need to coordinate employer corrections, the annual return or another applicable process. Avoid recovering the same excess twice or changing figures without supporting records.

If you used the ordinary annual return, see our guide to Form 100 instead of Form 151. That is a different error, although both can affect the same file.

Common Beckham Law withholding mistakes

• Applying 47% to all pay once the threshold is crossed.
• Confusing one month’s salary with the calendar-year total.
• Assuming payroll already holds the AEAT certificate.
• Missing a bonus, another payer or a change of job.
• Copying deductions into Form 151 without checking the records.
• Treating the amount withheld as the final tax liability.

A 24% payroll deduction also does not prove eligibility. The employee must first meet the legal conditions and complete the required election.

Beckham Law withholding: frequently asked questions

Does 47% apply to my whole salary?

Not merely because the threshold is crossed. Under the rule discussed here, it applies to the excess paid by the same payer during the calendar year.

Can I recover excess deductions?

A correction or refund may be available if the evidence supports it. Review the year, payments made to the tax office and any action by the employer. Citing the ruling does not produce an automatic refund.

Do correct deductions remove the Form 151 filing duty?

No. Withholding is a payment on account. The annual filing obligation under the regime still needs to be met.

What should I send for a review?

Start with the election certificate, payslips, annual withholding certificate and filed returns. Add details of bonuses, other payers and any AEAT notice.

Advice on payroll tax and Form 151

Pérez Parras Economists and Lawyers advises employees and executives under the Beckham Law. We review payroll, evidence of the election and the annual return. Where a tax office procedure is open, we assess the response alongside the underlying figures.

Request a review of your Beckham Law withholding. Once we understand the facts, we will define the scope and fees for the advice.

References: DGT ruling V1971-25 of 17 October 2025; LIRPF Article 93.2.f; RIRPF Articles 114.3 and 119.4; AEAT guidance on the impatriate regime. Reviewed September 2026.

If your payslip includes meals, childcare, health cover or transport, read our Beckham Law flexible pay guide. First check the tax treatment of each benefit. Then review its effect on withholding.