The new Spanish Digital Nomad Visa makes it easier and more lucrative for Britons to work remotely from Spain. If the Spanish sun and low cost of living were not tempting enough, the Digital Nomad Visa provides remote workers with the additional benefit of tax cuts. In this article, we have included all the key information, so read on to find out more!
What is a Digital Nomad?
A digital nomad is an individual who works online, and so is not tied down to living in a set location. The remote nature of their job allows digital nomads to travel while they work, and they often move overseas to seek improved weather and lifestyles. The popularity of working from home that emerged from the COVID-19 pandemic has caused a spike in the number of workers living nomadically.
What is the Spanish Digital Nomad Visa?
The Digital Nomad Visa is a new form of Spanish work visas. It is specifically for remote workers, allowing them to live and work virtually in Spain. The visa is part of a series of legislation aiming to attract international talent and encourage digital entrepreneurship in the county. As the visa applies to workers outside of the European Economic Area (EEA), it is applicable for British citizens looking to work abroad.
The Digital Nomad Visa, Spain is set to be introduced imminently. The laws have passed through the Spanish parliament, and are expected to come into action very early in 2023. This follows 15 other European countries that have also introduced a version of a nomadic visa.
Do I need a Visa to Work in Spain?
If you are British (or any other non-EEA citizen) you require a visa if you want to stay in Spain for longer than 90 days. British citizens also require Spanish work visas if they intend to work in Spain, even if this work is online for a non-Spanish company. The exact visa depends on your circumstances and intentions for your time in Spain, and we have a guide on Spanish visas here.
The Digital Nomad Visa Spain applies specifically to those who already work remotely and are looking to take their existing employment to Spain.
What are the Benefits of the Digital Nomad Visa in Spain?
The key benefit of the Spanish Digital Nomad Visa is a reduced rate of income tax. Essentially, holders of this visa are taxed as non-residents, whilst being able to enjoy all the benefits that come with residency! Under the new law those in Spain under a Digital Nomad Visa will pay a flat rate of 24% on employment income up to €600,000. Earnings exceeding this amount will be taxed at the higher rate of 45%. Spaniards currently pay 30% tax on earnings over €20,200 and 45% on income over €60,000 so this really is a huge saving! The Spanish government is using these tax breaks to make it as alluring as possible for overseas remote workers to come and live in Spain.
On top of the tax benefits, the Digital Nomad Visa in Spain allows a five-year residency. This will likely entail an initial single year application, followed by two renewals. After five years, you will be eligible to apply for permanent Spanish residency. The visa also covers spouses and children, making it simple to relocate your family.
Am I Eligible for the Spanish Digital Nomad Visa?
To qualify for the Digital Nomad Visa Spain, you will be required to prove you fulfil several criteria relating to your remote work. Applicants must:
– Be from outside the EEA (this includes Britons!)
– Work remotely for non-Spanish companies, with less than 20% of income coming from Spanish firms
– Have evidence of working remotely for at least a year prior to applying
– Have been working for at least 3 months in their current role
– Have an existing contract of employment (or proof of regular employment if freelance)
– Have a permanent Spanish address when they relocate
Please note, while the laws are expected to pass very soon, the exact requirements are subject to confirmation.
How do I Apply for a Digital Nomad Visa in Spain?
You can apply for a visa at your country’s Spanish consulate. The exact details of the application process will be clarified once the visa is officially launched.
Why Should I Relocate to Spain?
One of the largest attractions pulling nomadic workers to Spain is the weather. The idyllic Mediterranean climate of the Southern Costa Blanca makes it one of the most popular destinations for Britons looking to relocate. With over 300 days of sunshine per year and 65 km of coastline, remote workers can close their laptops just minutes away from sandy beaches and nature reserves. What’s more, with a mixture of cosmopolitan cities and traditional Spanish towns, you can experience all that Spanish culture has to offer. Combine this with the vibrant café culture, and there will be no shortage of fresh locations to work from!
Working remotely from Spain will also bring health benefits. The Spanish, along with Italians, boast the longest life expectancies in Europe. The abundance of vitamin D, the Mediterranean diet, and an active outdoors lifestyle have all been credited for this long lifespan. This comes hand-in-hand with a relaxed culture, perfect for nomadic workers seeking a low-stress and healthy way of life.
Besides the more obvious points of beautiful weather, relaxed lifestyle and rich culture, there are many other reasons to work remotely from Spain. Firstly, the cost of living is much lower than the UK. Alongside the tax breaks with the Digital Nomad Visa, this provides considerable financial benefits. Additionally, and importantly for remote workers, is the technological infrastructure. Spain boasts not only excellent 4G coverage, even across its rural areas, but also some of the highest Wi-Fi speeds in Europe (much higher than the UK!). Already convinced? Check out our guide on the best locations to live in Spain.
Summary
The Digital Nomad Visa is being introduced to tempt remote workers and their families to Spain. By offering a reduced rate of tax, the Spanish government adds financial savings to the long list of reasons to relocate to Spain. This widely anticipated visa is not available just yet, but is expected to be launched as early as January 2023!
