The legal background of the digital Nomad Visa Spain
The Entrepreneur Law was passed by the Spanish government in 2013 to lure in foreign investment and talent. This law led to the creation of the;
- Entrepreneur visa
- Golden visa
- Other residency options
However, that law wasn’t enough.
Driven by a similar vision, the government has now launched a new law with a stronger focus on startups, talent, and innovation—one that’s much better suited to the current market. This is the Startup Law.
The goal of the Startup Law is to position Spain as a leading destination for;
- Entrepreneurs
- Investors
- Skilled professionals
Spain offers a perfect environment for remote workers with excellent living conditions.
Perhaps the most significant provision of the Startup Law is its emphasis on attracting new international talent, particularly remote workers and digital nomads. This is achieved through the digital nomad visa.
What is the Digital Nomad Visa in Spain?
The digital nomad visa is a residence permit for non-EU citizens that can be extended for up to 5 years. It allows remote workers to live and work legally from Spain. It offers a perfect solution for those operating as digital nomads in the country.
Read More: Turkey Launches Visa Program for Digital Nomads
Perfect for Remote Work
This visa is perfect for nonnatives who need to move to Spain while proceeding to work for a company overseas or with clients around the world. A few other visas do not permit work but the digital nomad visa permits remote workers to work.
Double Application Option
One of the great advantages of the digital nomad visa is the choice to apply in two distinctive ways:
- From Spain: You can apply specifically with a visitor visa and get a 3-year card.
- From Your Country of Origin: You can apply at the Spanish office for a 1-year visa, which permits you to enter Spain and afterward adjust it to a 3-year card.
Does It Count Toward Nationality?
Yes, the years spent with the 3-year card (and its renewals) check toward Spanish nationality and long-term residency. You may apply for long-term residency after five years as an inaccessible worker or digital nomad in Spain.
Family Inclusion
You can also move with your family because the digital nomad visa also allows you to include your spouse and children in the same application.
Fast-Track Resolution and Administrative Benefits
As part of the Entrepreneurs Law, the digital nomad visa offers a fast-track resolution within 20 days. Additionally, if you don’t receive a response within this time, the administrative silence is considered positive, meaning your application is automatically approved.
Freedom to Travel Within the EU
With this residence card, you have the freedom to move throughout the EU.
For Non-EU Citizens
This visa is best for non-EU citizens, as Europeans can already work remotely in Spain for up to 6 months without needing a specific visa. If these Europeans want to live longer in the EU they should obtain resident NIE.
Requirements for the Spain Digital Nomad Visa
There are two main profiles of applicants for the digital nomad visa, each with slightly different conditions:
- Employed Workers: Employees whose company allows them to work remotely from another country (in this case, Spain).
- Self-Employed Workers: Freelancers with multiple clients worldwide or those earning income from online activities that are not based in Spain.
Key Eligibility Criteria
You must meet the following criteria to apply for the remote work visa in Spain,:
- No more than 20% of your add-up to pay can come from Spanish companies.
- You must have worked for your company or clients for at least 3 months sometime recently applying.
- Your contract with the company should last at least 1 year.
- You are required to gain at least €31,752 per year, which is €2,646 per month.
- You must have 3 years of important work experience
- A degree or post-graduate capability from a legitimate college, vocational training, or business school.
Additional Requirements
- Clean Criminal Record: You have no criminal record and not be prohibited from entering Spain. A certificate of no criminal record, valid for at least 90 days.
- Declaration of No Criminal Record: You must submit an announcement that you have had no criminal record for the past 5 years.
- Application Form: Complete the application form (available for download).
- Administrative Fee: Pay the corresponding administrative fee (790 038).
- Health Insurance: Obtain private health insurance with full coverage throughout Spain.
Additional Criteria Based on Employment Type
- For Employees: If you are working for a foreign company, the company must have been operating for at least 1 year before your application. The company must also confirm that your position allows for remote work.
- For freelancers: You must work with at least one company (outside Spain), and your contract must expressly state that remote work is allowed.
By meeting these criteria, you will be well on your way to applying for the digital nomad visa and taking advantage of the benefits of living and working in Spain.
Read More: Dubai Launches Gaming Visa to attract global gamers
Tax benefits of the digital nomad visa in Spain
Past the residency benefits, one of the most alluring perspectives of the digital nomad visa is its assessed advantages.
Special Tax Administration for Digital Nomad Visa Holders
The digital nomad visa comes with an uncommon tax administration outlined to help visa holders save cash on charges. If you’re an employee working remotely for a remote company (or maybe an independent freelancer), you will be taxed under a favorable Non-Resident Income Tax Regime.
Paying Less Tax: Non-Resident Income Tax
The key advantage here is that by paying non-resident income tax instead of the standard income tax for residents, you will pay much less on the salary you produce in Spain. If you haven’t been in Spain for the past 5 years (as restricted to the common 10-year rule), you’ll be qualified for a flat tax rate of a fair 24% on your income—much lower than the dynamic charge rates for residents, which can go up to 48%.
Separate Application Process for Tax Residency
To benefit from this tax regime, you must apply separately for non-residency tax status with the Spanish Tax Agency within 6 months of receiving your residency authorization. This process is similar to the Beckham Law.
No Wealth Tax and No Model 720 Declaration
In addition to the 24% flat tax rate on income up to €600,000, digital nomad visa holders are exempt from paying wealth tax and are not required to file the informational declaration known as model 720.
Tax Deferral Options
Visa holders can also request to defer the IRNR (Non-Resident Income Tax) for the first two years with a positive taxable income, without interest charges.
Extended Tax Benefits
This tax regime will remain in effect for up to 5 years, as long as you maintain your residency as a digital nomad. After that, you will switch to the general tax regime.
Read More: UAE Visit Visa Fee 2024 update from Pakistan
Can I Work in Spain with the Digital Nomad Visa?
We’ve already discussed how the digital nomad residency allows non-EU citizens to work remotely from Spain for a foreign company. But what about working for a Spanish company or client?
The answer is yes, but there are important limitations. You can work for a Spanish company as long as:
- You maintain your relationship with the foreign company that helped you obtain the visa.
- The income you earn from the Spanish company does not exceed 20% of your total income.
This ensures that the focus of your work remains tied to your foreign clients or employer, as required by the visa.
How to apply for a digital nomad visa in Spain
You have two alternatives to apply for the digital nomad visa, both directed at the UGE (General Directorate of Migration):
- Apply from your country of origin: You will get a 1-year visa, which can afterwards be changed over into a residency permit.
- Apply specifically from Spain: Enter Spain as a visitor and get a 3-year allowance, which can be renewed for an extra 2 years.
The application preparation is fast-tracked, with a choice ordinarily inside a fair 20 days.
After approval, you’ll be required to visit the police office to complete the last steps: registering your fingerprints and getting your physical residency card.
When Will This Law and Residency Take Effect?
After months of anticipation…
The remote worker visa is finally here! Published on December 22, 2022, it is now available, and you can begin your application to take advantage of this residency opportunity.
Read More: Types of Dubai freelance visas: what you need to know
FAQs about Digital Nomad Visa in Spain
What is the Cost of Spain’s Digital Nomad Visa?
The application fee for Spain’s digital nomad visa is;
- For initial applications: €73.26
- For renewals: €78.67 (tasa 790 038)
How Long Does It Take to Obtain the Visa?
The process typically takes around 20 days or less to receive a resolution. If you don’t receive a resolution within 20 days, your application is considered approved.
Once approved, you will need to visit the police office to provide your fingerprints. Your physical residence card should be ready for pick-up in about one month.
What Happens if My Application for the Spanish Digital Nomad Visa is Rejected?
If your application is rejected, you have the option to file an appeal for reconsideration. The appeal must be submitted within one month from the date you receive the visa denial notification.
For example, if you are notified on March 1st, the deadline for filing an appeal would be March 31st.
Is the Spanish Digital Nomad Visa the Same as the Non-Lucrative Visa?
No, the Spanish digital nomad visa is not the same as the non-lucrative visa.
- The digital nomad visa is for non-EU citizens who wish to work remotely in Spain for companies or clients abroad.
- The non-lucrative visa, however, is for non-EU citizens who want to live in Spain without engaging in any work, whether remote or in-office.
Are There Any Restrictions with the Spain Digital Nomad Visa?
Yes, there are restrictions. With the Spanish digital nomad visa, only 20% of your total income can come from within Spain. The remaining 80% must come from employers or clients outside the country.
What is the Validity Period of the Digital Nomad Visa in Spain?
- The digital nomad visa is valid for one year if you apply from your country of origin.
- If you apply directly from Spain, the visa is valid for three years.
Is It Possible to Renew or Extend the Digital Nomad Visa in Spain?
Yes, the digital nomad visa can be renewed or extended. As long as you continue to meet the requirements, you can apply for a visa renewal.
Is There a Specific Income Threshold Required to Qualify for the Digital Nomad Visa?
Yes, there is a specific income threshold. To qualify for the digital nomad visa, you must have a yearly salary of at least €31,752, which equals €2,646 per month.
Visa: To apply, make your way to the nearest Spanish diplomatic mission or consular office in your country of residence—it’s an opportunity to engage directly and get started on your journey.
Make sure to complete your application in person for the best experience. For more information visit their official website here.