Contents:
1. What it is?
2. Who can apply?
3. What are the requirements?
4. How long can you stay?
5. What are your tax obligations in Spain?
With good internet speed, warm weather, vibrant cities, good transport networks and low cost of living Spain is easy to understand why Spain is already a popular destination for remote workers.
The new Spanish digital nomad visa launched by the Spanish Government in 2023 will help you making a reality of your dream to work from the beach.
1. What is a digital nomad visa?
This type of visa is ideal for remote or self-employed freelance workers who want to live and work from Spain for a longer period than a tourist visa allows to visit the country.
One of the key requirements of this visa is to work remotely for companies or clients based outside Spain, you will not be allowed to work for a company or client based in Spain, unless you are self-employed and such Spanish based client does not exceed 20% of your turnover.
2. Who can apply?
This visa is for any non-EU nationals planning to live in Spain as a resident, working remotely for a company or an employer located outside Spain, and using exclusively computer telematics and telecommunication media and systems. Self-employed freelancers with multiple clients can also apply.
When the applicant is self-employed, he/she can also work for a company located in Spain, as long as the percentage of this particular work doe not exceed 20% of the total amount of their professional activity.
The applicant must have an undergraduate or postgraduate degree from a University, College or Business School, or have at least 3 years of work experience in their current field of activity.
The following family members may also obtain the visa:
- The spouse or unmarried partner.
- Dependent children and parents who form part of the family unit.
3. What are the requirements?
Aside from the above work and professional experience or educational requirements applicants:
· Must have a valid passport.
· Must hold a Spanish NIE number or evidence of having applied for it.
· Must not be living illegally in Spain at the time of their application and cannot have lived in the country within the five years prior to applying.
· Must prove that they have worked for their clients or company for at least 3 months before applying for the visa and the company or clients they work for must have been operational for at least one year before submitting the visa application.
· Must prove they have a contract of employment or, if freelancing, have been regularly employed by a company/work for clients outside of Spain - and that their job can be done remotely.
· Must prove they have at least three years of work experience in their current field or relevant qualifications such as a university degree or professional qualification/certificate.
· Certificate in evidence of the public or private health insurance contracted with an insurance entity authorised to operate in Spain. The insurance policy must cover all the risks insured by Spain's public health system. Travel insurance is not accepted. Proof of having registered it with the Spanish National Social Security is accepted as public health insurance.
· Proof of Social Security cover from the country of origin recognised in Spain and proof of having registered with the Spanish Social Security. If the country you are applying from does not have a social security agreement with Spain, the company you work for will need to start paying to the Spanish Social Security for the employee.
· Must prove they do not have a criminal record, by providing a criminal records certificate with a clear record from the country or countries where the applicant has been resident in the two years prior to the visa application. Additionally, the applicant must submit a responsible declaration form confirming the absence of criminal records for the last 5 years.
· Must prove they have enough financial means to self-sustain in Spain. Financial means must be at least 200% of the monthly Spanish national minimum wage (approximately £2,140 (2,333.34 Euros) per month or approximately £25,700 (28,000 Euros per year). Additional financial means are required if also family members apply.
4. How long can you stay?
Digital nomad visas in Spain are initially valid for a maximum of 12 months or for the duration of the employment period if it is shorter than 12 months.
Once you are in Spain and before the digital nomad visa expires, you can apply for a three-year residency permit -if you have an employment contract for an indefinite period-, which can be renewed for a further two years, giving you up to five years in total.
To maintain the visa, you must not be absent from the country for more than six months per year.
Once you are in Spain, you can apply for a residency card that will allow you to travel within the EU/Schengen Area, although it will not allow you to live and work in another EU country outside Spain.
5. What are your tax obligations in Spain?
Under the Spanish Tax system, if you are a resident in Spain for more than 183 days a year you will be considered tax resident in Spain and must pay taxes in Spain on your worldwide income.
As in order to maintain the digital nomad visa you must not be absent from the country more than 6 months, you will become tax resident in Spain.
However a digital nomad visa offers certain tax benefits compared to those permanently resident and employed in Spain. It allows the visa holder to pay taxes under Spanish Non-Residents Income Tax Law meaning only income obtained from working in Spain will be taxed in Spain. This will be a fixed rate of 24% up to 600,000 Euros, 47% on income above 600,000 Euros. There are further rules on capital gains obtained in Spain.
Note that you will only be able to benefit from the above tax regime during the tax year you move to Spain and the subsequent 5 tax years after.
Please get in touch if you need assistance in applying for your Spanish digital nomad visa.
At Lopez & Moreno Associates we can also assist you with your Spanish NIE number application.