Are you a digital nomad dreaming of living and working in Spain? Well, dream no more because the new digital nomad visa is here! This comprehensive guide will walk you through all the requirements, tax advantages, and legal tips you need to know before applying for the digital nomad visa in Spain. Say goodbye to the limitations of a tourist visa and hello to a life of remote work in the perfect setting. Let's dive in!
Legal Background of the Digital Nomad Visa
In 2013, the Spanish government introduced the Entrepreneur Law, which aimed to attract foreign talent and investment to the country. While this law brought about various residency options, it wasn't perfectly tailored to the needs of digital nomads. That's where the new Startup Law comes in. This updated regulation focuses on startups, talent, and innovation, making Spain an attractive destination for entrepreneurs, investors, and qualified workers.
What is the Digital Nomad Visa?
The digital nomad visa is a residence permit that allows non-EU citizens to live and work remotely from Spain. It provides a flexible solution for individuals who want to continue working for a company abroad or have clients spread across the globe. Unlike other visas that restrict work activities, the digital nomad visa enables you to legally operate as a digital nomad in Spain.
Requirements for the Digital Nomad Visa in Spain
To qualify for the digital nomad visa, you must meet certain requirements depending on whether you are an employed worker or a self-employed freelancer.
Employed Workers:
- Your company must be located outside of Spain.
- Incomes received from Spanish companies or within Spain cannot exceed 20% of your total income.
- You must have been working for your company for at least 3 months prior to your application.
- You must have a contract with the company for at least 1 year.
- Your yearly salary must be €31,752 (€2,646 per month).
- You must demonstrate either 3 years of work experience or hold a degree from a reputable university, vocational training, or business school.
- You must provide a criminal records certificate with a minimum validity of 90 days, legalized and apostilled.
- A declaration of no criminal record for the last 5 years is required.
- Fill out the application form and pay the administrative fee.
- Obtain private health insurance with full coverage in Spain.
Self-Employed Freelancers:
- You must be working for at least one company located outside of Spain.
- Spanish companies cannot comprise more than 20% of your total income.
- You must provide evidence of working for your clients or having multiple sources of income from online activities.
- The terms and conditions of your contract must specify the possibility of remote work.
- Fulfill the same requirements for criminal records, application form, administrative fee, and health insurance as employed workers.
Tax Benefits of the Digital Nomad Visa
One of the major advantages of the digital nomad visa is the tax benefits it offers. As an employee working remotely for a foreign company, you can take advantage of the Non-Resident Income Tax Regime. This allows you to pay a flat tax rate of just 24% on your income, compared to the progressive rates that can reach up to 48% for residents. You will also be exempt from wealth tax and the informative declaration known as model 720.
To be considered a non-resident for tax purposes, you must initiate a separate application process with the Spanish Tax Agency within 6 months of obtaining your residency authorization. This special tax regime applies for 5 years as long as you maintain your status as a digital nomad in Spain.
Working in Spain with the Digital Nomad Visa
While the digital nomad visa primarily allows you to work remotely for a foreign company, you can also work for a Spanish company or client under certain conditions. You must maintain your relationship with the foreign company that enabled you to obtain the visa, and the income generated from the Spanish company cannot exceed 20% of your total income.
Application Process for the Digital Nomad Visa
There are two options for applying for the digital nomad visa:
- Apply directly from your country of origin: You can obtain a 1-year visa from the Spanish consulate in your home country, which can later be modified to a 3-year permit once you arrive in Spain.
- Apply from Spain as a tourist: You can enter Spain with a tourist visa and then modify it to a 3-year permit. This option allows for a fast-track application process, with a response time of just 20 days.
Once your application is approved, you will need to visit the police office to register your fingerprints and receive your physical residency card.
Conclusion Digital Nomad Visa in Spain
The digital nomad visa in Spain opens up endless possibilities for remote workers looking to experience the country's rich culture, breathtaking landscapes, and vibrant cities. With its flexible requirements, tax advantages, and benefits for both employees and self-employed individuals, it's the perfect opportunity to live and work in Spain stress-free. So, if you're ready to embark on your digital nomad journey, start your application today and make Spain your new home away from home.
Additional Information:
- The digital nomad visa allows for a maximum residency period of 5 years.
- The visa application process includes filling out a form, providing necessary documents, and paying an administrative fee.
- Private health insurance with full coverage in Spain is required for both employed workers and self-employed freelancers.
- The digital nomad visa allows you to include your spouse and children in the same application.
- The visa application can be submitted in person or through a representative.
- The decision on the visa application is typically made within 10 days, but this timeframe may be extended in certain cases.
- Visas must be collected in person within 1 month of notification.
- Visa refusals will be notified in writing, and appeals can be made within 1 month of notification.
- The digital nomad visa allows for free movement within the European Union.
- Sworn translations and legalization of foreign documents may be required.
- The visa can be used as proof of legal residency, but a Residence Permit Card can also be obtained voluntarily.
- The digital nomad visa is available to non-EU citizens, as EU citizens can work remotely in Spain for up to 6 months.
- The digital nomad visa counts towards Spanish nationality and permanent residence after 5 years of residency.
- The tax benefits of the digital nomad visa include a special tax regime with a flat tax rate of 24% on income derived from work.
- Non-resident income tax is applicable for the first 5 years, after which the general tax regime applies.
- The digital nomad visa allows for the deferral of non-resident income tax in the first and second year with a positive taxable income.
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Thank you for reading Digital Nomad Visa in Spain: The Complete Guide.
Welcome To TerraSur Homes. My name is Marise, the co-founder. We are a family-run company, and we love to help individuals and families find their desired property on the Costa del Sol whether it be a holiday home, full-time residence, or buy-to-let opportunity. As expats ourselves, we understand the challenges that come with buying properties in a foreign country, that’s why our customers trust us to accompany them every step of the process.
