On December 22nd, 2022, Law 28/2022 (also known as the ‘Startups Law’) was passed in Spain. In today’s article we analyse one of the major innovations of this Law. The ‘Digital Nomad Visa’. In a short Q&A format, we will analyse its main features, requirements and the tax benefits offered by this new visa.
What exactly does the Digital Nomad Visa consist of?
In short, it is a ‘residence permit’ for non-EU teleworkers that allows them to reside and work in Spain, remotely (teleworking) with a series of tax benefits.
What type of workers can apply for this Visa?
On the one hand, self-employed workers who work for foreign clients and can do so remotely. On the other hand, ‘ordinary’ employees are also eligible. That is, those who are linked to a single company, through an employment contract.
Are workers required to have any qualifications?
Yes, the ultimate goal of the law is to attract foreign talent to Spain. Therefore, the worker must have a university degree or postgraduate studies, professional training, or at least three years of professional experience.
Can I apply for this VISA and also work for Spanish companies?
Yes, but there is a limit. The international teleworker who resides and works in Spain, as a self-employed person, can only work for Spanish companies when the income obtained from them does not exceed 20 per cent of his/her annual invoicing.
Are there any other special requirements related to the worker and the companies he/she works for?
Yes, proof that the company or companies for which the applicant works have been in business for at least one year must be provided. In addition, it will be necessary to demonstrate that the work can be carried out remotely. Finally, it should not be forgotten that the employment or professional relationship between the worker and the company must exist at least three months before the application is submitted.
What other documentation is required to apply for the Digital Nomad Visa?
You will need to provide a copy of your valid passport. Proof that you do not have a criminal record in Spain (nor in the country where you have lived for the last two years). Take out a private health insurance etc. Documents issued abroad must be translated and apostilled.
What financial means must be accredited in order to apply for this Visa?
In principle, the worker must prove that he/she has a monthly amount equivalent to 200 per cent of the Minimum Interprofessional Salary. That is, approximately €2,160 per month.
How long does the visa for digital nomads last?
When the visa is requested from Spain, the initial authorisation will have a maximum duration of three years. At the end of this period, you can ask for it to be renewed for periods of two years. This time also counts for the purposes of permanent residence (five years) and Spanish nationality (10 years).
Is it possible to group family members of digital nomads together?
Yes, either from the initial moment, or later on, it will be possible to group direct family members (spouse, common-law partner, children, ascendants, etc).
What are the tax benefits of the visa for digital nomads?
The tax regime for digital nomads is particularly beneficial. Up to €600,000, the applicable rate to income is set at 24 per cent. In addition, it will not be necessary to file the 720 Tax Form, or the Wealth Tax. However, it will be necessary that worker has not been resident in Spain for the previous five years.
At White-Baos we are specialists in Immigration Law. If you wish to be informed, in detail, of the requirements and complete procedure to obtain the Digital Nomad Visa, please do not hesitate to contact us. We will study your case and offer you expert advice on the subject.
The information provided in this article is not intended as legal advice, but 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 2023 – All Rights Reserved.
Hi I am an employee with an international company in Dubai. My job can be done remotely and they have no objections to that. I read a lot of information on the web but one point remains confusing, does my employer need to fill a social security form as a promise to pay my social security? This is a tough one on my employer but I am happy to contribute directly to the social security
Could I work remotely but return to the UK once a month for a meeting or do you have to work remotely 100% of the time?
If I worked part time with a permanent contract but fulfil income criteria etc is this ok?
Thanks