Living and Working in Spain just got easier for Digital Nomads!

The long-awaited "digital nomad visa" or "Ley de Startups" in Spain is now available.

Every British citizen knows that moving to Spain after Brexit necessitates a visa, and visa requirements are frequently prohibitively expensive or difficult to meet.

However, the situation has shifted due to the recent approval of the Spanish startup law and the implementation of the Digital Nomad Visa. As a result, citizens of the United Kingdom now have an open door to a simpler life in Spain. Americans and Britons, for example, can quickly obtain visas and benefit from significant tax breaks.

What is a Digital Nomad?

A digital nomad is an individual who travels and uses technology to conduct remote work from locations other than their country of residence.

What is a Digital Nomad Visa?

A digital nomad visa is a government document or programme that allows an individual to work remotely while residing in a country other than their permanent residence. With a remote work visa, non-EU nationals can live and work in Spain for five years. It is part of the new Startup Act, approved by parliament in November 2022, to promote the country's tech scene and encourage entrepreneurship.

How to apply for a Digital Nomad Visa in Spain

We would advise seeking legal advice to help you with the application process. However, if you feel brave enough to tackle the Spanish bureaucratic system single-handedly, follow this link: Apply for a Digital Nomad Visa in Spain.

How much does it cost to get a Digital Nomad Visa in Spain?

Costs may vary depending on if you are assisted in the application process by a third-party company such as a lawyer. It also depends on what companies you use to help you get your documents translated and signed by apostles. However, to give you a rough idea, the costs for getting a DNV are usually around £1,600 per person.

What are the requirements for a Digital Nomad Visa to live in Spain?

Candidates must be citizens of nations other than those in the European Union. At the time of application, they cannot reside in Spain illegally and have not resided there within the previous five years.

All applicants must show proof of a contract or, if freelancing, that a company has regularly employed them outside of Spain and that their job can be performed remotely.

In addition, they must demonstrate their qualifications or experience in their field. A minimum of three years of work experience is required instead of qualifications such as a university degree or professional certificate.

Remote work classification. So what is actually classed as "remote work"? At least 80% of your remote work must be for businesses outside Spain.

Your contract with the company must include agreed-upon terms and conditions for remote working. Before you relocate to Spain, the company must have been in business and trading for at least one year.

Anyone interested in participating in the digital nomad programme must demonstrate their ability to make enough money to support themselves and meet the above-mentioned professional requirements.

The income threshold is 200 per cent of the nation's monthly minimum wage, and proof of income must be provided through bank records, contracts, and invoices.

This equates to €2,334 per month or €28,000 per year, but as the nation is revising its minimum wage, it will likely increase slightly.

It is also necessary to have health insurance. Although it is still being determined how this will work, there may be an option to pay into public health insurance.

Applicants must not hold a criminal record in Spain or the country where they have lived for the previous five years. All applicants must provide proof of a two-year clean criminal record, and a sworn statement that they have not had a criminal record in the last five years is required.

What are the advantages of getting a Spanish Nomad Visa?

Fast track visa: You will receive a decision in just 20 days after submitting all the required paperwork.

Inviting family members: Allow them to apply for residency using the same information as you (no extra requirements).

Unrestricted travel within the EU: After receiving this visa, you will have unrestricted access to the Schengen Area.

Pay fewer taxes: Use a particular tax structure that allows you to pay only 24% of your income in taxes.

Applying directly from Spain: Start the application process when you arrive as a tourist in Spain.

The visa grants the applicant a one-year residence permit, followed by two-year extensions for five years.

All your worldwide income and gains and your net assets under Wealth Tax may be tax-free in Spain.

Why has Spain introduced the Nomad Visa?

Spain has simplified its visa and tax procedures to encourage international employees and their families to become Spanish residents. Spain wishes to attract foreign talent and investment. The DNV (Digital Nomad Visa) allows third-country nationals to live in Spain while working remotely and provides significant tax benefits. The visa holder can benefit from the so-called Beckham Rule (non-resident tax). In particular, the digital nomad visa beneficiaries are eligible for the following tax breaks: Income tax is applied at a fixed rate of 24% on earnings up to €600,000 per year. The tax rate on excess income is 47%. Expats have a status similar to non-doms in the United Kingdom in that all of their worldwide income and assets are exempt from Spanish tax obligations for six years.

How long can you stay in Spain on a Digital Nomad Visa?

Initially, the digital nomad visas in Spain are valid for twelve months or the duration of the employment period if less than 12 months. However, they can be renewed for up to five years.

You can only leave the country for six months annually to keep the visa. If required, remote workers may also apply for a residency card, allowing them to travel freely within the European Schengen area while residing in Spain.

Final Thoughts

The new visa option undoubtedly opens the door for British nationals looking to relocate to Spain, but before you rush to apply, keep the following in mind:

The tax implications of Anglo-Spanish for your current and future financial situation. Inheritance tax obligations exist because IHT is applied to Spanish-based assets and paid by Spanish tax residents.

We advise you to seek legal advice regarding the above to ensure that your financial interests are always safeguarded. Last but not least, even though moving to Spain is a common dream, doing so can have challenging effects; as such, we cannot stress enough the need to take professional advice.

Moving to Spain for work is more complex than ever, but this new opportunity may help.

It is critical to seek professional assistance with visas, tax planning, home purchases, and investment opportunities, and my colleagues and I will be happy to assist and refer you to trusted professional partners as needed.

If you are based in the Costa del Sol area and would like to have an initial, face-to-face video call (free of charge) or arrange a time to contact Kelly, please email [email protected] or message/call on WhatsApp at +34 658 956 633

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