Spain's Digital Nomad Visa, Do You Qualify?
Sponsored by Klev&Vera International Law Firm.
The world has become increasingly fast-paced, and every day more and more people can work remotely from anywhere in the world. If you are one of the lucky ones that has a stable job or business and can work remotely, you can now consider spending some time in Spain while working with total transparency for your foreign employer or business.
After more than one year of consideration and debates, Spain approved the long-expected, new law that incorporates a new residence permit for digital nomads in 2022. On December 1, 2022 the Spanish Congress of Deputies approved the Act on the Promotion of the Startup Ecosystem, commonly known as “the Startups Law.” The Senate published the slightly modified version of the Startups Law on December 2, 2022. On December 22, 2022 it was published in the Official Bulletin of the State (BOE).
The new visa became available to request starting from December 23, 2022 and the conditions of the new digital nomad visa in Spain as outlined in the new law are as follows.
Who Is a Digital Nomad in Spain?
A digital nomad is a citizen of a non-EU/EEA country (US and UK included) who wants to stay in Spain to work for a foreign company or their own business located abroad. The work must be done exclusively remotely—i.e. through a computer, mobile and online communications.
Who Qualifies for the Digital Nomad Visa in Spain?
- Qualified professionals who can prove that they are graduates or postgraduates from reputable universities, vocational training and business schools of recognized prestige.
- Qualified professionals who can prove that they have at least three years of relevant professional experience.
What Kind of Employment Can I Have in Spain If I Apply For A Digital Nomad Visa?
- If you work for a foreign company as an employee, you can only work for companies located outside of Spain.
- If you work for yourself as a freelancer or as a foreign business director, you can be allowed to provide your services in Spain only if the percentage of such work does not exceed 20% of your total professional activity.
How Do I Apply for a Digital Nomad Visa in Spain?
You can apply in two ways.
- If you are abroad, you can request your visa at the Spanish Consulate that corresponds to your official place of residence. The duration of digital nomad visas are of a maximum one year.
- If you are legally present in Spain, you can file directly for your residence permit online. The duration of digital nomad residence permits are of a maximum three years. You can request a renewal if you continue fulfilling the conditions.
Can I Switch from My Non Lucrative Visa to a Digital Nomad Visa?
The good news for many is YES YOU CAN. If you fulfill the requirements, you can file for your digital nomad permit online while your current residence permit is valid.
What Other Requirements Do I Need to Fulfill to Apply for a Digital Nomad Visa?
As always, any law has its fine print. To qualify for a digital nomad visa in Spain you must:
- Prove that the foreign company you work with has real and continued business activity for at least one year.
- Prove that you can work exclusively remotely.
- Prove that you work with the foreign company for at least three months before requesting a digital nomad visa.
- Prove that you don’t have a criminal record.
- Prove that you have private health insurance with full coverage.
Do I Need to Pay Taxes in Spain If I Have a Digital Nomad Visa?
The general idea of the digital nomad visa gives you the right to apply for a so-called Beckham law exception, i.e. you only pay your income tax on the income you receive in Spain with the rules as if you were a non-resident.
However the fine print on the tax section of the Startups Law requires further clarification from the Spanish government.
It appears that those digital nomads who have an employment contract with a foreign company can apply for the Beckham law application. In this case the entire salary that you receive under your employment contract shall be considered obtained in Spain.
The tax rate so far is 24% on the income of up to €600,000, and 47% on the income above €600,000.
It also appears that if you receive your income in Spain through a “permanent establishment” and have a recognized condition of a startup, you can apply for a reduced tax rate of 15% for the first three tax years once you start to generate a profit.
However, as tax law is highly complicated and nuanced, it is advisable to consult with a Spanish tax expert to determine your own tax situation in Spain as it can be affected by many particularities.
Are You Ready to Become a Digital Nomad?
If you are ready to apply for a digital nomad visa in Spain, or switch your current residence permit (e.g. non-lucrative residence) to a digital nomad residency, it is always a good idea to assess your circumstances with an expert to make sure you qualify for a digital nomad visa or residency and understand well the tax consequences.
Anna Klevtsova is managing partner of Klev&Vera with over 18 years of experience in public service and international cooperation projects. Anna leads the corporate and immigration practice, specializing in company formations, investment transactions and immigration strategies. Anna is fluent in English, Russian, Spanish, and also speaks French and Catalan.
Sponsored by Klev&Vera International Law Firm.
Updated December 29, 2022.
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