ONE of the many changes caused by the Covid-19 pandemic has been the exponential increase in teleworking around the world. Thanks to new technologies, in many cases, a computer and internet connection is all that is needed to carry out a profession. This entails considerable freedom to choose one’s place of residence. In this context, the appeal of Spain as a possible destination is undeniable. Before the end of the year, the so-called ‘Start-ups Law’ is expected to be passed in Spain and will include a ‘Digital Nomad Visa’. Why is this Visa causing such a stir, and what are the implications of its approval? We analyse all these questions, and more, in today’s article.
Digital Nomad Visa: What exactly is it about?
The entry of foreigners into any country has traditionally been conditioned by the fulfilment of a series of very specific requirements. Although international treaties such as the Schengen Agreement have loosened these requirements (the well-known 90-day rule), there is still a lot of work to be done. Especially in the employment field.
The Digital Nomad Visa aims to go a step further and cover a new type of worker who does not quite fit into the current regulatory framework. Those who are not tied to a specific place and that can carry out their activity, with a computer and internet connection, anywhere. With them in mind, a Digital Nomad Visa is expected to be approved soon. It will consist of a permit that will authorise them to work from Spain, remotely, for companies based abroad.
Main characteristics, possible requirements, etc.
We will have to wait for its publication in the Official State Gazette to find out in detail the requirements that will end up being demanded in Spain. However, the government’s intentions seem clear. First, logically, it will be necessary to prove that you work remotely for companies located outside Spain. In addition, it will be necessary to demonstrate a certain economic capacity. As a reference, in our neighbouring country, Portugal, an average monthly income of €2,820 is required. It also seems clear that the income of ‘nomads’ coming from Spain cannot exceed 20 per cent of their total revenue. In other words: 80 per cent of the income of these workers will have to come from foreign companies. Finally, a private health insurance may be compulsory.
What are the advantages of this visa? Among others, the following. Residence for up to one year, which could be extended, foreseeably, up to a total of five years. A lower tax rate in the Non-Resident Income Tax (it is speculated that it will drop from 24 per cent to 15 per cent). Etc.
Have other EU countries approved specific regulations on this matter already? Examples in other European territories.
Yes. There are several countries in Europe that already have their own regulations in place to regulate this new phenomenon. Estonia was one of the first to adapt, in mid-2020. Croatia followed in 2021. Greece, Germany, Norway, Iceland and, very recently, Portugal (its law will enter into force on October 30) also offers this type of visa.
As soon as the Law of Start-ups and the Nomad Digital Visa passes, we will inform you in detail. In the meantime, if you need information about the different types of residence permit that best suits your case: Golden visa, non-profit visa, etc, do not hesitate to contact us. At White-Baos we will study your case and offer you expert advice on the matter.
The information provided in this article is not intended to be legal advice, it simply conveys information related to legal issues.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
White & Baos 2022 – All Rights Reserved.
