Work Remotely from Spain
Spain has introduced a digital nomad visa: here's everything you need to know before applying
With a low cost of living and good internet, Spain is already popular among remote workers and offers non-EU citizens the opportunity to live and work in Spain for up to five years.
Approved by the parliament in November 2022, it's part of the new Startup Law, which aims to attract entrepreneurship and strengthen the country's tech scene.
Who can apply for Spain's digital nomad visa?
Spain's digital nomad visa is open to non-EU citizens who work remotely for non-Spanish companies. Applicants can derive a maximum of 20 percent of their income from Spanish companies.
Both freelancers with multiple clients and remote workers employed by a single company outside of Spain can apply for the visa.
Applicants must be from outside the European Economic Area. They must not be living illegally in Spain at the time of their application and cannot have resided in the country within the previous five years.
They must demonstrate that they have worked with their clients or company for more than three months before submitting the application, and the company they work for must have been operational for at least one year. They must be able to prove that they have an employment contract or, if they are freelancers, have been regularly employed by a company outside of Spain, and that their work can be done remotely.
They must also prove that they are qualified or have experience in their field. A minimum of three years of work experience is required instead of qualifications like a university degree or a professional certificate.
What are the requirements for Spain's digital nomad visa?
In addition to meeting the professional requirements described above, anyone wishing to take advantage of the digital nomad scheme must demonstrate that they earn enough money to be self-sufficient.
The income threshold is set at 200 percent of the country's monthly minimum wage and can be proven through bank statements, contracts, and invoices. Currently, this amounts to €2,800 per month or €33,600 per year, but it is likely to increase slightly as the country is reevaluating its minimum wage.
Applicants must not have criminal records in Spain or in the country where they have resided for the previous five years. Proof of clean criminal records for the past two years is required, along with an affidavit stating that they have no criminal records in the last five years.
Proof of social security coverage from the applicant's home country is also required. If the country from which the application is submitted does not have a social security agreement with Spain, the company the applicant works for will need to obtain a contribution code and start paying for the employee.
This step has proven problematic for some individuals seeking to apply for Spain's digital nomad visa. Most companies are unlikely to agree to pay more so you can work abroad if it's not necessary. And even if you're from a country with a social security agreement, such as the US or the UK, obtaining a certificate can still be difficult.
It's a bit easier if you are self-employed. All you need to do is send a letter confirming that you will register once you arrive in Spain to take over the payment of social security contributions yourself.
Before starting an application, it's worth considering that this particular test could take some time to obtain. You may very well need the assistance of a lawyer to complete the process, and BB & OP ABOGADOS has extensive experience in this type of visa.
How long can digital nomads stay in Spain?
Digital nomad visas in Spain are initially valid for 12 months or for the duration of the employment period if it's less than 12 months. Once in Spain, you can apply for a three-year residence permit, which can be renewed for an additional two years, giving you a total of up to five years.
To maintain the visa, you must not be absent from the country for more than six months per year.
Remote workers can also apply for a residence card, which grants them the ability to travel throughout the EU while living in Spain.
Close family members, such as children and spouses, can join the visa holder in the country with proof of sufficient funds. If included in your application, your spouse or civil partner can also live and work in Spain.
Do digital nomads receive tax benefits in Spain?
Anyone who stays in Spain for more than 183 days is considered a tax resident, even if they're working for a foreign company. However, tax benefits are available for digital nomads working and living in the country under the visa scheme.
Remote workers can pay a reduced tax rate of 15 percent for the first four years of their stay, as long as they earn less than €600,000 per year. This is instead of the usual 24 percent rate.
We remain at your disposal to analyze measures that may be of interest to individuals, freelancers, or companies through email legalidad@legalidad.eu or by phone at +34910601422, and we will assist you without obligation.
Legal Disclaimer: The content of this document cannot be considered in any case a recommendation or legal advice on any matter.