In December 2022, the Spanish parliament gave the “special digital nomad visa and tax system for start-ups” its final approval. The law was put into place on December 23, 2022, and instantly made Spain more open to people with digital skills across all parts of the economy. Businesses in Spain, and around the world, have welcomed the news. More so, anyone who has the freedom to work remotely has done so too. With this new law, it will now be possible for non-EU “digital nomads” to live and work in Spain easily and without the need to align with other more demanding visas.
How did The Digital Nomad Visa for Spain Come to Be?
With the rise in remote working since the pandemic, a number of countries across the world have been looking at ways to attract so-called remote workers and digital nomads and their skills to their shores. To facilitate this, the Spanish government passed a new draft law with a number of goals, including:
- Simplifying paperwork for new Spanish businesses
- Creating tax incentives for businesses and entrepreneurs relocating to Spain
- Making it easier to start a business in Spain
- Introducing a new visa for digital nomads and remote workers
When can we start to apply for the new Visa?
The visa was signed into law on December 23, 2022. But we are still waiting for visa applications to be available, both inside and outside of Spain, at consulates. Applications are expected to be running by the 31st March 2023 and the application procedure is expected to take around 20 working days.
Who exactly is this Visa for?
This visa is for digital professionals & other people who are not EU citizens and who don’t live in Spain but want to work remotely from Spain. This visa will make it easier to find a place to live, and people will be able to stay for up to 5 years with extensions after which they can then apply for permanent residency and stay in Spain. Initially, the digital nomad visa allows a stay of 1 year but can then be extended.
This visa is not available to people from a third country who are registered as family members of EU citizens. This is because they already get the benefits of EU law and do not need a residence permit.
Does the new remote work Visa offer any income tax benefits or incentives?
Yes, the tax benefits are one of the new visa’s best features. The tax rate with a visa will be 24% for the first €600,000 they make. From €600,001, the tax rate goes up to 47%. Overall, a significant saving on the current Spanish tax regime.
Will family members be able to get a digital nomad visa?
Yes. Your partner or spouse and kids under 18 can join the visa holder in Spain provided sufficient funds are demonstrated. If you want to bring children over 18 with you, you will have to show that they depend on you financially and don’t have their own families.
What has to be demonstrated in order to successfully apply for this visa for digital nomads?
- You are currently a resident of a non-EU country
- That no more than 20% of your company’s work is for Spanish companies
- Show that you can work remotely from Spain easily and effectively
- If you have a contract with a foreign company, you should have been working with that company for at least three months
- Said company should allow working from home
- If you are a self-employed freelancer, you should work for at least one company outside of Spain
- You cannot be residing in Spain against the law
- You can never have been convicted of a crime in Spain or had a criminal record anywhere else you have lived in the last five years outside Spain
- You are covered by health insurance for at least a year and if it’s a private policy, it must be with a company that’s allowed to sell insurance in Spain
- That you have suitable funds for yourself and the people who depend on you as you work remotely in Spain
How much is enough money and how do I show that I can work remotely?
The person seeking to live and work in Spain needs to receive 200% of the minimum wage per annum in income, this equates to €1,100 x 200% = €2,200.
With a first dependent (your spouse or partner) we then have to add on 75% of the minimum salary, so €1,100 x 75% = €825.
Each additional dependent, e.g., children, costs 25% of the minimum salary, or €275 each.
So, a family of four would need to demonstrate an income of €3,575 per month or €42,900 per year.
How can I demonstrate that I have enough money to meet the visa requirements to be a digital nomad in Spain?
You must show proof of your salary by including a copy of your contract, a pay stub, or a certificate from your company that shows your salary.
Where can I apply for Spain Digital Nomad Visa and look to work in Spain?
If you apply once you’re already in Spain, the application process is easier and cheaper to apply directly from Spain. But you can apply for this visa at a Spanish consulate in your home country.
You can use a 90-day Schengen tourist visa to go to Spain to apply for a digital nomad visa when there.
Can I apply for a Digital Nomad Visa if I’m already living in Spain under a different visa residency?
If you meet all the requirements for the digital nomad visa, the answer is yes. Note, though, that you can’t apply for this visa if you are registered as a family member of an EU citizen. This new visa also offers a much simpler route to a life in Spain above the more complex and more expensive Golden Visa or non-lucrative visa alternatives.
What Comes Next for Spanish Digital Nomad Visa?
As the law has already been passed on December 23, 2022, the digital nomad visa will soon be available at all Spanish consulates. The visa is expected to be fully up and running by the 31st March 2023. By taking advantage of the 90-day tourist visa, you can in affect move to Spain now and apply for the visa when there and available from consulates.
