Spain is targeting digital nomads and, in recent weeks, has finalised the legislative process to introduce a visa allowing non-EU citizens working remotely for non-Spanish companies to settle in any area of the country. Announced by the government as a solution to ‘attract and retain international and national talent’, the visa is part of a law dedicated to startups that aims to promote digital activities and companies in the sector.
The opportunity to alternate work and leisure in the tapas bars of Madrid, on the beaches of Barcelona or in the historical cities of Andalusia, as well as the already popular Canary and Balearic Islands, interests many people. According to Semrush, a marketing agency that monitors web traffic and trends, Google searches for ‘digital nomad visa in Spain’ increased by 66 per cent in the last days of January after the Spanish authorities announced the novelty.
Aimed at freelancers and those working for foreign companies, the visa can be applied for by those from countries outside the European Union, plus Norway, Iceland and Liechtenstein. Requirements include not having lived in Spain in the previous five years and not having done so illegally. Those who work independently must prove that they have had foreign clients for more than three months prior to the application, but freelancers will also be able to derive up to 20% of their income from Spanish companies. Employees must work for companies that have been active for at least more than twelve months and include among the documents to be submitted a letter from the company itself authorising the employee to work abroad.
Concerning professional qualifications, visa applicants must prove they have at least three years of experience, if not a degree or professional certificate.
The visa for digital nomads is valid for 12 months or a shorter time that corresponds to the duration of the work period for which the application is made. The visa can be renewed for two years up to a maximum of five years. Those who plan to live between Spain and another country may also maintain the visa by spending a maximum of six months per year outside the country.
How much money must you have
The Spanish government has set the minimum monthly salary in force in the country at twice the minimum wage that digital nomads have to prove through invoices, contracts and bank statements. The figure is currently 2,334 euros per month, or 28,000 euros per year, although it will likely increase after the minimum wage for Spanish workers is raised. For a couple, 75% of the monthly minimum Spanish salary must be added (approximately €875), while for each child, a further 25% must be considered (thus approximately €295). Partners and children can be included in the visa application, in this case demonstrating greater economic availability.
As always, there is an obligation to have private health insurance and a clean criminal record in Spain and the countries where one has lived in the last five years.
Sun, climate, excellent food and wine, an abundance of cultural sites and the cost of living among the lowest in Europe are factors that put Spain at the top of the wish list of millions of digital nomads. To an already highly competitive package, one must also add the tax benefits provided by the government. Those who stay in the country for more than 183 days will be required to pay taxes in Spain even if they work for one or more foreign companies. They will do so by falling within the 15% tax rate for the first four years as long as they earn less than €600,000 per year. This is a considerable advantage because the basic tax bracket in force is 24%.
Thanks also to the tax rebate, several analysts predict that Spain will become a favourite destination for non-European digital nomads in the coming years. They hope that more and more European countries (the United Kingdom and France above all) will follow the example of Spain, Portugal, Croatia and Italy, providing those who work remotely with the opportunity to live and contribute to improving the country’s economy.
