With the rise of remote working around the world, Spain has become one of the favourite destinations for telecommuting. Since its implementation in 2023, it is estimated that more than 10,000 people have applied for the digital nomad visa for Spain in its first year, and it is expected that more than 50,000 digital nomads will move to Spain in the coming years thanks to this visa.
But what process do they have to follow to apply for this visa and get it approved?
What is the digital nomad visa?
At the beginning of 2023, a visa arrived in Spain that would revolutionize the way of living in this country. This is the digital nomad visa, a special residence permit that allows remote workers to live in Spain while maintaining employment in a foreign country or running a foreign business.
One of the aims of this visa is to cater to freelancers, entrepreneurs, and employees who can work independently without the need for a physical office.
Overview of the visa for remote workers
The digital nomad visa gives non-EU citizens the ability to reside in Spain while working for a company located outside Spain or running their own business remotely. This visa is generally granted for one year and can be extended if you continue to meet the established requirements.
Benefits of the digital nomad visa
· Legal residence in Spain for up to one year, with the possibility of renewal.
· Access to the health system and other social services in Spain.
· Ability to travel freely within the Schengen Area.
· Lower living costs compared to other European countries.
· High quality of life with access to Spain's cultural and recreational opportunities.
Eligibility criteria for the digital nomad visa
Before applying for the digital nomad visa, it is essential to ensure that you meet the eligibility criteria set by the Spanish government.
Requirements for remote workers
· You must work for a company that is not based in Spain or manage a business that operates mainly outside Spain.
· You must have worked remotely for at least one year prior to application.
· You must provide proof of employment or contracts showing that your work is remote and continuous.
· Your income must meet the minimum threshold set by the Spanish government, which is generally above the national minimum wage.
Who can apply for the visa?
This visa is primarily designed for:
· Freelancers providing services to clients outside Spain.
· Entrepreneurs running online businesses.
· Remote employees of foreign companies.
Step-by-step application process
Do you meet all the requirements to apply for this visa? Then you should follow these steps.
Documents needed for the application
The first step is to get all the documentation you need to submit:
· Valid passport.
· Proof of employment or business ownership (such as contracts or a letter from your employer).
· Proof of sufficient income to support you during your stay in Spain.
· Valid health insurance coverage in Spain.
· Criminal record certificate from your home country.
· Completed visa application form.
· Application timeline and fees
Tax implications for digital nomads
One crucial aspect to consider before moving to Spain as a digital nomad is the personal tax in Spain. Living in Spain for an extended period can impact your tax obligations.
Understanding Spanish tax obligations
Once you have been living in Spain for more than 183 consecutive days, you are considered a tax resident. What does this mean? It means that you are obliged to pay tax on your overall income, not just on income earned from work in Spain.
Spain has a progressive tax system, which means that the higher your income, the higher the percentage of tax you will pay. That's why it's important to always consult a tax lawyer to guide you through your options and choose the best course of action.
Beckham Law
To attract foreign talent, Spain offers the Beckham Law, a special tax regime for qualified individuals, including digital nomads. Under this law, you can claim a reduced tax rate of 24% on your income earned in Spain for up to six years, instead of the standard progressive rates.
Living in Spain as a digital nomad
Spain is an idyllic country for those who want to come to telework. It offers an ideal climate practically 365 days a year, especially on the Costa Blanca, where the sun caresses your skin on the most beautiful beaches in the country.
In addition, its gastronomy is ranked as one of the best in the world and together with its culture, make it a country rich in traditions and history that you have to experience at least once in your life.
The digital nomad visa for Spain not only allows you to explore this beautiful country, but also gives you access to essential services such as healthcare and education.
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