February 3rd, 2023 | Posted by: Grace Kim
Being able to work remotely while having the freedom to travel the world sounds nothing short of a dream. But what if I told you that such a thing was possible while having a residency abroad? Well, if this is something you’ve considered even once in your life, I’ve got good news.
In January 2023, a brand new Digital Nomad Visa became available in Spain, which is the 41st country to offer one. This resulted from the approval of the Ley de Startups, a permit granting digital nomads and foreign remote workers to create a path to residency in Spain. The startup aims to create Spain to be known as Europe’s entrepreneurial hub, attracting those from Non-European Economic Area (EEA) countries (including the UK).
While promoting a startup ecosystem and investing in outside talent, this could be one of the biggest catalysts that will influence the country’s growth after suffering from the impacts of COVID-19.
Who can apply for the Digital Nomad Visa in Spain?
Although anyone can apply for the visa under certain requirements, the Digital Nomad Visa targets non-EU passport holders. EU passport holders already have the right to work remotely in Spain if their stay is under six months; however, any non-EU citizens must meet these minimum requirements for visa approval:
- Applicants must be able to make €2,100, twice the national minimum wage of €1,050
- Applicants must have a global income with at most of up to 20% earned from other Spanish countries
- Applicants must have private health insurance coverage valid throughout their entire residency in Spain
- Applicants must have been working remotely for at least one year prior to application
- Applicants must be employed by a non-Spanish company, and must be able to present their employment contract
- Applicants must not have residency status in Spain within the last 5 years preceding their application
- Applicants must show proof of obtaining either a college degree or 3 years of work experience
- Applicants must hold a clean criminal record and have not previously been prohibited entry into Spain
- Applicants must then show proof of residency in Spain
If applicants are full-time remote workers on a contract agreement, they must be able to show proof that they’ve worked with their employer for at least three months prior to the application date, and evidence that the company allows remote work.
Furthermore, if qualifications are met and if an applicant is self-employed, they are then allowed to independently dedicate 20% of their services to a registered company in Spain.
>> Sign up for the Best International Health Insurance
What are the main advantages of the Spanish Digital Nomad Visa?
Once you feel as if you’re able to meet all the listed criteria, listed are benefits to why Spain’s Digital Nomad Visa is well worth it:
- Up to 5 year residency permit. One of the best benefits of a long term residency permit is the freedom to travel within Europe and have Spain as your home base.
- Ability to travel anywhere within the country. Freely living and working remotely in Spain’s popular cities, such as Madrid and Barcelona, is the ultimate dream. But have you ever considered exploring less visited cities, such as Salamanca or Cadaques, but just never had the time to do so?
- Tax breaks from foreign employers. As long as the remote worker has an establishment in Spain, there are beneficial tax breaks.
- Tax breaks for employees. Remote workers will only have to pay a flat ‘non-resident’ tax rate of 24% on the first €600,000 of gross annual earnings over a 5 year period. Anything over that will be taxed at a 47% tax rate.
- Legally allowed to override the 90/180-day rule. Entering Spain on a tourist visa limits visitors on their total stay period (differs between EU and non-EU passport holders)
- Flexibility of working remotely anywhere in Spain. As long as there’s wifi, have total freedom of working anytime, anywhere right off your laptop.
How to apply for the Spanish Digital Nomad Visa
Since the visa is still very young, there are talks about online application forms coming soon. However, if you’ve already mentally committed that you want to obtain a long term residency in Spain, there are two ways to apply for a shorter visa in the meantime. Both directing to the UGE (Unit for Large Companies and Strategic Economic Sectors):
- Your home country: you would get a 1-year visa that can be modified into residency in the future
- Directly from Spain: you can enter Spain on a tourist visa, and then apply for the Digital Nomad Visa within the first three months
Even if you are not currently, physically in your home country, there are 93 Spanish embassies to apply from around the world. From the date of application, you will receive a response after 20 days through a fast-track application.
What happens after you obtain the Digital Nomad Visa?
Once approved, new Spain’s Digital Nomad Visa holders are required to register their fingerprint and residency card within 30 days of settling into the nation. This way, local municipalities have records and proof of the foreigners’ application and accommodation in Spain.
How long does the Digital Nomad Visa in Spain last for?
Initially, Spain’s Digital Nomad Visa was sought out to be valid for one year. However, as long as all the minimum requirements can be met, the visa can be renewed for up to 5 years.
What’s the best international health insurance?
Once all the requirements are met, reliable health insurance is one of the most crucial necessities for long term travel. Aimed for digital nomads and remote workers, SafetyWing is a popular choice as it’s affordable and has ideal coverage for long term travelers. In case anything goes wrong while abroad, having medical coverage as backup always secures an ease of mind, in case you end up with an unaffordable bill.
>> Sign up for the Best International Health Insurance
Overall
Whether you’re looking to change the pace of your business or have always wanted to be location independent, Spain’s Digital Nomad Visa encourages location independence in environments that encourage startup culture and growth. As the visa looks to attract worldwide entrepreneurs and unique talent alike, remote workers from all around the world are able to obtain flexible lifestyles while living the dream.
For as long as application requirements are able to be met, along with good wifi of course, Spain is on the path of being one of the most desired places to live and settle down for digital nomads. Starting the initial application process may seem overwhelming at first but as long as all the needed documents are valid for approval, this could be the pivot point for your business, lifestyle, and future opportunities. Best of luck and safe and happy travels!
Frequently Asked Q&A about Spain’s Digital Nomad Visa
If you still have ongoing questions about the visa, here are answers to frequently asked questions:
Can I live in Spain and work remotely?
Yes. As long as your application for Spain’s Digital Nomad Visa is approved, you are able to freely live anywhere in Spain and work remotely. Without the DNV visa, tourists are allowed to stay in Spain for up to 90/180 days on a tourist visa.
- European passport holders: up to 180 days
- non-EU passport holders: up to 90 days
Can I get a residency in Spain?
Foreigners are allowed residency for up to 5 years if approved for Spain’s Digital Nomad Visa. Applicants must have all criteria approved, with proof of residency in Spain.
What happens if I stay over 90 days in Spain?
If a foreigner from outside the European Union spends more than 90 days in the country, they may be required to pay a fine (anywhere between €501 to €10,000), leave the country, and potentially be banned from entering the Schengen Area for a specific period of time.
Please see the list of 27 countries in the Schengen Area here.
Another crucial point to note is that these 90 days count for a total time period of 6 months (one semester). These days do not have to be consecutive, which means that it will not be possible to stay in Spain for 90 days, leave the Schengen area for one day, then re-enter Spain with another set of 90 days that automatically resets. To legally re-enter, foreigners must leave the Schengen area for 90 days from their exit date before attempting to cross the border again.
Is Spain good for digital nomads?
Spain is undoubtedly a great place to be for digital nomads and remote workers alike. From checking off a number of bucket list places to living in affordability with great weather, Spain offers endless benefits to digital nomads. Visit Spain, live like a local, and network with other digital nomads across coworking spaces and events throughout the country.
Does the Digital Nomad Visa include family members?
Yes. Those who are accepted for the visa will be able to include immediate family members, such as a spouse and children under 18. If the child is over 18 years old, the parent must prove that the child financially depends on them, and does not have their own independent family.
Where do most American expats live in Spain?
Across Spain’s 50 provinces and 857 cities, most expats live in Madrid, Barcelona, and Valencia. These are Spain’s most popular cities, attracting a variety of employment opportunities as English is highly spoken.
- Madrid: best to find work. Attracts thousands of expats and remote workers every year, and almost every large Spanish company has an office in Madrid.
- Average monthly living expense: €1,454/month
- Barcelona: best for students. City with the highest standards of living, hub for nightlife, and holds Spain’s top three universities.
- Average monthly living expense: €1,800/month
- Valencia: best for families. If you’re looking to move to a more suburban, quieter area, Valencia offers the perfect mix of peaceful beaches and residential areas. It’s the ideal city to move in with a family in Spain, as there are excellent school districts as well.
- Average monthly living expense: €1,200/month
Do digital nomads pay taxes in Spain?
If a person is actively residing in Spain under the Digital Nomad Visa, then yes. Digital nomads must pay a flat ‘non-resident’ tax rate of 24% on the first €600,000 of gross annual earnings over a 5 year period.
Those under the Digital Nomad Visa benefit from The Beckham Law, a tax regime to boost the economy by attracting foreign capital and affluent expats. The law caters to expats as it reduces previous residency history from 10 to 5 years. Not paying taxes is unavoidable and against the law for as long as assets are owned or economic activities are conducted in Spain.
Can I live in Spain and pay tax in the USA?
US passport holders and green card holders must file a US federal tax return, regardless where in the world the income is generated from. Even if you are approved for a working visa in another country, you are still a resident of your home state and liable to pay state taxes.
Is US Income Taxable in Spain?
A foreigner who spends more than 183 days a year in Spain is considered a resident for tax purposes. Whether Spain is their main base, expats who earn more than €22,000 a year must file a Spanish tax return. On the flip side, The United States – Spain Tax Treaty covers double taxation in regards to income tax and capital gains tax.
Which European countries offer Digital Nomad Visas?
If you’re looking to keep your options open, here are a list of other European countries that also offer work visas:
- Portugal
- Croatia
- Czechia
- Estonia
- Germany
- Hungary
- Greece
- Iceland
- Italy
- Malta
- Romania
- Spain
- Norway
Pin these when applying for Spain’s Digital Nomad Visa!
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