Spain's Beckham Law offers a flat 24% tax on employment income up to EUR 600,000 — but it expires after 6 years and comes with wealth tax obligations. Bulgaria's flat 10% personal income tax has no income cap, no expiry date, and no wealth tax. Both countries are in the EU, use the euro, and are Schengen members. For expats choosing between the two, the right answer depends on your income structure, your investment portfolio, and how long you plan to stay.
This guide compares the two regimes line by line: personal income tax, corporate tax, dividends, capital gains, wealth tax, inheritance, social security, cost of living, residence requirements, and — critically — what happens when the Beckham Law runs out. We include concrete calculations at EUR 150,000 and EUR 300,000 to show the real-world difference.
What Is Spain's Beckham Law?
The Beckham Law — formally the Special Regime for Impatriate Workers (IRPF Article 93) — was introduced in 2005 and has been amended several times since. Named after footballer David Beckham, who was among its first high-profile beneficiaries, the regime allows qualifying new tax residents in Spain to pay a flat 24% tax on Spanish-source employment income instead of the standard progressive rates.
Key features
- Flat rate: 24% on employment income up to EUR 600,000 per year. Income above EUR 600,000 is taxed at 47%.
- Duration: the year of arrival plus 5 full tax years — 6 years total. Non-renewable.
- Eligibility: you must not have been a Spanish tax resident in the previous 5 tax years. You must be moving to Spain for employment, as a company director (with conditions), or — since the Startup Law (Ley de Startups, 2023) — as a digital nomad visa holder or entrepreneur.
- Foreign income exemption: investment income from foreign sources — dividends, capital gains, and rental income from outside Spain — is exempt from Spanish taxation under this regime. This is the Beckham Law's most powerful feature for investors.
- Non-resident treatment: you are treated as a non-resident for tax purposes on non-Spanish income, despite living in Spain full-time.
What the Beckham Law does NOT cover
- Spanish-source investment income: dividends, interest, and capital gains from Spanish sources are taxed at the savings rates (19%/21%/23%/26%).
- Wealth tax: Beckham Law beneficiaries are still subject to Spain's wealth tax on Spanish-located assets, and the nationwide Solidarity Tax on Large Fortunes applies regardless.
- Social security: contributions are mandatory under the standard Spanish regime — employer + employee contributions totalling approximately 36-38% of salary (capped).
The Beckham Law is a tax regime, not an immigration visa. You still need a valid residence permit (work visa, Golden Visa, digital nomad visa, or EU free movement rights) to live in Spain. The tax regime and the immigration status are separate applications.
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Get Your Free Comparison →What Is Bulgaria's 10% Flat Tax?
Bulgaria has levied a flat 10% personal income tax (PIT) on all taxable income since 2008. Unlike Spain's Beckham Law, this is not a special regime — it is the standard tax rate that applies to every tax resident, whether Bulgarian or foreign, whether earning EUR 30,000 or EUR 3,000,000.
Key features
- PIT: 10% flat on all taxable income. No upper limit, no brackets, no phase-outs.
- CIT: 10% flat corporate income tax. Among the lowest in the EU.
- Dividend tax: 5% on dividends from Bulgarian companies to individual shareholders.
- Combined corporate-to-individual rate: 15% (10% CIT + 5% dividend). This is the effective rate for an EOOD owner-manager distributing profits.
- Freelancer effective rate: 7.5% — freelancers (svobodna profesiya) receive a 25% automatic expense deduction, paying 10% on the remaining 75%.
- Capital gains: 0% on shares traded on EU/EEA regulated markets for individuals. 10% on other capital gains.
- Wealth tax: none. No solidarity tax. No equivalent levy.
- Inheritance tax: 0% for close relatives (spouse, children, parents).
- Duration: permanent. No expiry, no renewal, no sunset clause.
Residence for EU citizens
EU/EEA citizens need only register at the Migration Directorate with proof of self-sufficiency (EUR 5,100 threshold), health insurance, and accommodation. No police registration, no GRAO visit. Fees are EUR 7 (certificate), EUR 18 (ID card), or EUR 36 (expedited). The process typically takes 1-2 weeks. Bulgaria has been a full Schengen member since January 2025 and adopted the euro in January 2026.
Bulgaria's tax regime is structural, not promotional. It is enshrined in the Income Tax Act and the Corporate Income Tax Act. There is no application process, no approval, no special status to request. If you are a tax resident (183+ days or centre of vital interests), you pay 10%. That is it.
Side-by-Side Comparison: Spain (Beckham Law) vs Bulgaria
| Category | Spain (Beckham Law) | Bulgaria |
|---|---|---|
| Personal income tax | 24% flat (employment, up to EUR 600K); 47% above | 10% flat (all income, no cap) |
| PIT after regime expiry | 19%-47% state + regional surcharge (up to 54%) | 10% flat (permanent) |
| Regime duration | 6 years (arrival + 5). Non-renewable. | Permanent. No expiry. |
| Corporate income tax | 25% standard; 15% startups (first 2 years) | 10% flat |
| Dividend tax (individual) | 19%-26% (savings rates on Spanish-source); foreign dividends exempt under Beckham | 5% |
| Combined CIT + dividend | 25% CIT + 19%-26% on net = ~40-45% | 15% (10% + 5%) |
| Capital gains (shares) | 19%-26% savings rates (Spanish-source); foreign exempt under Beckham | 0% (EU/EEA regulated market); 10% other |
| Wealth tax | 0.2%-3.5% above EUR 700K (Madrid effectively exempts regional tax) | None |
| Solidarity tax on large fortunes | 1.7%-3.5% above EUR 3M (nationwide, even in Madrid) | None |
| Inheritance tax (close relatives) | 7.65%-34% (varies by region; some regions heavily discount) | 0% |
| VAT (standard) | 21% | 20% |
| Social security (total) | ~36-38% of salary (employer + employee, capped) | ~32-33% of salary (employer + employee, capped) |
| Freelancer effective PIT | 24% Beckham (if eligible, employment only) or 19%-47% standard | 7.5% (25% auto deduction + 10%) |
| Foreign investment income | Exempt under Beckham Law | 10% (worldwide taxation) |
| Residence complexity (EU citizen) | NIE + registration at police; straightforward | Migration Directorate only; EUR 5,100 threshold |
| Currency | EUR (since 1999) | EUR (since January 2026) |
| Schengen | Yes (since 1995) | Yes (since January 2025) |
| Cost of living (Sofia vs Madrid) | Higher (Madrid ~40-60% more expensive) | Lower (Sofia among cheapest EU capitals) |
| Exit tax | Yes — unrealised gains taxed on departure (EU harmonised) | No general exit tax for individuals |
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Book Free Tax Consultation →When Spain Wins: The Beckham Law Advantage
The Beckham Law is not universally worse than Bulgaria's flat tax. There are specific profiles where Spain comes out ahead:
1. High employment income + large foreign investment portfolio
If you earn EUR 400,000 in employment income and hold EUR 2,000,000 in foreign stocks generating EUR 80,000 in dividends and capital gains annually, the Beckham Law is powerful:
- Employment income: EUR 400,000 × 24% = EUR 96,000 in Spanish tax.
- Foreign investment income: EUR 80,000 × 0% = EUR 0 (exempt under Beckham Law).
- Total Spanish tax: EUR 96,000 on EUR 480,000 = 20% effective rate.
In Bulgaria, the same person would pay:
- Employment income: EUR 400,000 × 10% = EUR 40,000.
- Investment income: EUR 80,000 × 10% = EUR 8,000 (assuming non-regulated market gains and dividends from non-BG sources).
- Total Bulgarian tax: EUR 48,000 on EUR 480,000 = 10% effective rate.
In this scenario, Bulgaria still wins on pure tax. But add wealth tax to the equation: in Bulgaria, your EUR 2M portfolio attracts zero wealth tax. In Spain, even under Beckham, Spanish-sited assets above EUR 700K attract the wealth tax, and above EUR 3M the Solidarity Tax applies nationwide.
2. Short-term relocation (under 6 years)
If you plan to live in Spain for exactly 4-5 years before moving elsewhere, the Beckham Law's 6-year limit is irrelevant — you leave before it expires. In that window, the foreign income exemption can be very valuable if you have substantial foreign investment income.
3. Lifestyle preference
Tax is not the only factor. Spain offers Mediterranean coastline, established international communities in Barcelona and Madrid, a mature healthcare system, and a large English-speaking expat infrastructure. Some people will pay a premium for the lifestyle. That is a personal calculation, not a tax one.
The Beckham Law's real edge is the foreign income exemption. If your foreign dividends, capital gains, and rental income are significant (EUR 100K+ per year), the exemption can save more than the PIT difference. But this advantage disappears entirely in year 7, when all income becomes taxable at up to 47%+.
When Bulgaria Wins: The Flat Tax Advantage
For most expat profiles we encounter, Bulgaria's regime produces a lower total tax burden. Here is why:
1. Company owners and EOOD operators
The combined corporate-to-individual rate in Bulgaria is 15% (10% CIT + 5% dividend tax). In Spain, even with Beckham Law, if you run a Spanish SL (limited company), you pay 25% CIT + savings rates (19%-26%) on dividends — a combined rate of approximately 40-45%. The difference is dramatic.
A Bulgarian EOOD earning EUR 200,000 in profit distributes EUR 180,000 after CIT (EUR 20,000) and pays EUR 9,000 in dividend tax — total tax EUR 29,000 — combined rate 15% (10% + 5%). A Spanish SL with the same profit pays EUR 50,000 CIT + approximately EUR 28,500-39,000 dividend tax on the net — total EUR 78,500-89,000.
For company owners, the comparison is not even close. Bulgaria's 15% combined rate vs Spain's ~40-45% combined rate is the single largest difference between the two countries. If you operate through a company, Bulgaria wins by a wide margin regardless of income level.
2. Freelancers
Bulgaria's freelancer effective rate is 7.5% (25% automatic expense deduction + 10% on 75%). Spain's Beckham Law does not cover self-employment income — freelancers (autonomos) pay the standard progressive IRPF rates (19%-47%) plus mandatory social security contributions starting at approximately EUR 230/month. Even at modest income levels, the Spanish freelancer tax burden significantly exceeds Bulgaria's 7.5%.
3. Income above EUR 600,000
The Beckham Law caps the 24% rate at EUR 600,000. Above that, Spain taxes at 47%. Bulgaria taxes at 10% on every euro, with no cap. For a person earning EUR 1,000,000:
- Spain (Beckham): EUR 600,000 × 24% + EUR 400,000 × 47% = EUR 144,000 + EUR 188,000 = EUR 332,000.
- Bulgaria: EUR 1,000,000 × 10% = EUR 100,000.
- Difference: EUR 232,000 per year.
4. Permanent relocation
If you plan to stay long-term (7+ years), the Beckham Law's 6-year limit is a critical weakness. After year 6, you face Spain's standard progressive rates — up to 47% state, with regional surcharges pushing the top marginal rate to 54% in some autonomous communities. Bulgaria's 10% never changes.
5. No wealth tax
Bulgaria has no wealth tax and no solidarity tax. If your net assets exceed EUR 3,000,000, Spain's nationwide Solidarity Tax on Large Fortunes (1.7%-3.5%) applies even if you live in Madrid (which exempts the regional wealth tax). On a EUR 5,000,000 portfolio, the Solidarity Tax alone can cost EUR 34,000-70,000 per year. In Bulgaria: EUR 0.
6. Lower cost of living
Sofia is approximately 40-60% cheaper than Madrid and Barcelona for rent, dining, and daily expenses. This amplifies the tax advantage: lower tax and lower spending means significantly more retained wealth.
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Start Your EOOD Setup →Concrete Examples: EUR 150,000 and EUR 300,000
Example 1: EUR 150,000 employment income
Spain (Beckham Law)
- PIT: EUR 150,000 × 24% = EUR 36,000
- Wealth tax: EUR 0 (below threshold)
- Effective rate: 24%
Bulgaria (Flat Tax)
- PIT: EUR 150,000 × 10% = EUR 15,000
- Wealth tax: EUR 0 (does not exist)
- Effective rate: 10%
Annual saving in Bulgaria: EUR 21,000. Over 6 years (the Beckham Law period): EUR 126,000. After year 6 in Spain, the rate jumps to the standard IRPF — at EUR 150,000, the marginal rate reaches 45% (state) plus regional surcharge, producing an effective rate of approximately 35-38%. Bulgaria stays at 10%.
Example 2: EUR 300,000 employment income
Spain (Beckham Law)
- PIT: EUR 300,000 × 24% = EUR 72,000
- Wealth tax: depends on assets
- Effective rate: 24%
Bulgaria (Flat Tax)
- PIT: EUR 300,000 × 10% = EUR 30,000
- Wealth tax: EUR 0
- Effective rate: 10%
Annual saving in Bulgaria: EUR 42,000. Over 6 years: EUR 252,000. After year 6 in Spain, EUR 300,000 of employment income attracts approximately 42-45% effective tax (IRPF state + regional). The jump from EUR 72,000/year to approximately EUR 126,000-135,000/year is a EUR 54,000-63,000 annual increase. Bulgaria remains at EUR 30,000 — year 7, year 10, year 20.
Example 3: EUR 150,000 via Bulgarian EOOD
Spain (SL company)
- CIT: EUR 150,000 × 25% = EUR 37,500
- Net after CIT: EUR 112,500
- Dividend tax: EUR 112,500 × ~21% = EUR 23,625
- Total tax: EUR 61,125 (40.75%)
Bulgaria (EOOD)
- CIT: EUR 150,000 × 10% = EUR 15,000
- Net after CIT: EUR 135,000
- Dividend tax: EUR 135,000 × 5% = EUR 6,750
- Total tax: EUR 21,750 — 15% combined (10% + 5%)
Annual saving in Bulgaria: EUR 39,375. The EOOD comparison is where Bulgaria's advantage is most dramatic. And unlike the Beckham Law, the Bulgarian EOOD rate does not expire.
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The Expiry Problem: What Happens After 6 Years in Spain
This is the question every Beckham Law beneficiary must confront: what happens in year 7?
When the Beckham Law expires, you revert to Spain's standard IRPF progressive rates:
| Taxable income (EUR) | State marginal rate | Approximate total with regional surcharge |
|---|---|---|
| 0 - 12,450 | 19% | 19-20% |
| 12,450 - 20,200 | 24% | 24-26% |
| 20,200 - 35,200 | 30% | 30-33% |
| 35,200 - 60,000 | 37% | 37-41% |
| 60,000 - 300,000 | 45% | 45-50% |
| 300,000+ | 47% | 47-54% |
Additionally, in year 7:
- Foreign investment income becomes taxable. Those exempt dividends, capital gains, and rental income? Now taxed at savings rates (19%-26%).
- Wealth tax continues. And if your net assets have grown during the 6 Beckham years, the wealth tax burden increases.
- Exit tax if you leave. Spain taxes unrealised capital gains on departure (EU-harmonised exit tax) if you hold shares worth more than EUR 4,000,000 or a 25%+ stake in any entity, or have been a Spanish tax resident for 10+ years. If you stayed for the full Beckham period plus a year or two, this can apply.
The Beckham Law creates a cliff. Your tax rate does not gradually increase — it jumps from 24% to 45-54% in a single year. Your foreign income goes from exempt to fully taxable. Many Beckham Law beneficiaries plan to leave Spain at expiry, but by then they may have children in Spanish schools, property, and social ties that make leaving costly in non-financial ways. Bulgaria's rate is the same in year 1 and year 20: 10%.
The relocation-after-Beckham pattern
We regularly see clients who used the Beckham Law for 5-6 years and are now looking for their next low-tax jurisdiction. Many consider Portugal (which ended its NHR regime for new applicants in 2024), the UAE (0% but no EU membership), or Bulgaria. For those who want to stay in the EU, Bulgaria is the only remaining option with a single-digit flat tax rate and full EU, eurozone, and Schengen membership.
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Book Your Transition Call →Summary: Which Regime Wins?
Choose Spain (Beckham Law) if:
- You are an employed individual (not self-employed)
- You earn under EUR 600,000 from employment
- You have large foreign investment income (dividends, CG, rent) that benefits from the exemption
- You plan to stay 6 years or less
- Lifestyle in Spain is a priority
- Your net assets are under EUR 3M (avoiding Solidarity Tax)
Choose Bulgaria if:
- You operate through a company (EOOD) — 15% combined vs ~40-45%
- You are a freelancer — 7.5% effective vs 19-47%
- Your income exceeds EUR 600,000
- You want permanence, not a 6-year window
- You have significant net assets (no wealth tax)
- Lower cost of living matters
- You value simplicity — no special regime application, no expiry to plan around
The most common profile we see: expats earning EUR 80,000-300,000 through their own company or freelance work, planning to stay in Europe long-term. For this profile, Bulgaria wins on every metric: lower PIT, lower CIT, lower dividend tax, no wealth tax, no expiry, lower cost of living, and simpler residence. The only metric where Spain wins is the foreign investment income exemption — and that advantage is temporary.
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Book Free Consultation →Frequently Asked Questions
What is Spain's Beckham Law?
What is Bulgaria's 10% flat tax?
Which is better for employed expats earning under EUR 600,000?
What happens when the Beckham Law expires after 6 years?
Does Spain have a wealth tax? Does Bulgaria?
How does Bulgaria's freelancer rate compare to Spain?
Can digital nomads use the Beckham Law?
Is Bulgaria in the eurozone and Schengen?
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Book Free Consultation →Disclaimer: This article provides general information comparing the tax regimes of Spain and Bulgaria and does not constitute tax advice in either jurisdiction. Tax laws change frequently and individual circumstances vary. The Beckham Law has specific eligibility criteria that must be verified with a Spanish tax adviser. Bulgarian tax obligations depend on your residency status and income structure. Consult qualified tax professionals in the relevant jurisdiction before making relocation decisions based on tax considerations. Our team advises on the Bulgarian side. Last updated: April 14, 2026.