Needing nothing more than a laptop and the internet means it’s never been easier to travel freely and work remotely with flexible hours from Spain, sounds nice doesn’t it? More and more people are choosing to enjoy this way of life, even more so since the pandemic, with Digital Nomads flocking to tropical destinations such as Antigua, Barbados, The Cayman Islands and historic European countries Portugal, Croatia and The Czech Republic. Most recently Valencia was voted ‘’the world’s best city in the world to live and work’’ by Forbes in November 2022.

Whilst Spain has become a top destination for tourists and expats for its low cost of living, good all year-round climate and social security, the Digital Nomad visa hasn’t been an option, until now. “Hurrah!” I hear you cry!

At long last the Spanish Government has approved a new “Start Ups Law”, a visa specifically for remote workers and Digital Nomads to attract international investment and professional talent, as well as promote digital entrepreneurship.

The requirements of this new visa and when it will be available however, are still pending…

Back to Basics, what is a Digital Nomad?

In case you didn’t know, a Digital Nomad is someone who can work, or carry out any entrepreneurial activity and be able to travel the world freely. Being able to change where Digital Nomad’s reside whilst working is a new lifestyle that affords incredible freedom of movement.

What do we know about the Digital Nomad Visa so far?

This new visa will be a residence visa with authorisation to work remotely in Spain for companies outside of Spain.

The law distinguishes between employed and self-employed workers. In the case of an employee, the applicant can only work for companies based outside Spain. The self-employed can work remotely for both companies from outside of Spain and Spanish based companies. However, there are some limitations, for example self-employed freelancers are only able to allocate 20% of their professional activity to companies based in Spain.

If employed by a foreign company the applicant must prove that they have been employed by the company for at least three months, and the activity can be carried out 100% remotely. Both stipulations should therefore be stated in the employment contract submitted for the visa application. The applicant must also prove that the employer has been in continuous and real activity for at least one year.  

If the visa applicant is self-employed and works for a foreign company, the applicant must prove that they have been working for a minimum of one year prior to submitting their application, and their work can be carried out completely remotely.

Tax Implications

Fortunately, this new visa will also grant tax benefits for both employers and employees. Details are yet to be confirmed.

Furthermore, if the applicant hasn’t been living in Spain for the past five years they will be able to reside and work in Spain whilst taking advantage of a favourable tax rate, paying non-resident income tax for five fiscal years.

Who can apply for the Digital Nomad Visa?

The visa will only be available to citizens outside the EEA (European Economic Area) as EU members already have the right to free movement being part of Schengen.

If you are planning to apply for this visa in Spain please note there will be a number of additional requirements however, these are yet to be officially announced.

What are the provisional visa requirements?

• Fill in the specific visa application form

• Valid passport

• A certified affidavit confirming you don’t have a criminal record must be issued by the authorities of the country, or countries, where you have resided for the last five years prior to entering Spain

• Proof of professional competence in the specific field of the digital activity

·  Proof that the applicant has not be prohibited from entering Spain

• Provide a medical certificate proving that the applicant doesn’t suffer from any infectious diseases in accordance with the International Health Regulations of 2005.

• Proof of payment of the government fee.

• Have a vocational training title eg: Graduate, Postgraduate, Admission to Business School, etc., or at least 3 years professional experience

 • An employment contract that proves the employment is in digital activity and that the employee has been employed for at least one year, the company must also be active for at least one year

•  In the case of working for a company located outside of Spain, they must be employed for at least the last three months.

• Private medical insurance with full coverage throughout Spain.

• A Bank certificate proving possession of at least €28,000 which represents 200% of the SMI (Minimum Interprofessional Salary) for the main applicant and €10,500 for each additional family member, which represents 75% of the SMI. If the money is held in a foreign bank, a simple translation is required. The amount can also be demonstrated by means of a contract and pay slips.

Anything else we should know?

The visa will only be valid for a maximum of 1 year, unless the period of work is shorter, in which case the visa will have the same duration.

If you wish to reside for longer than 1 year that you should apply for the visa at your local Embassy.

In the instance you have obtained your Visa and the year has elapsed, you can apply for a Residence Permit. In this scenario the applicant will obtain a 3-year permit to reside and work throughout Spain. You will have to apply for Residence Permit via The UGE, otherwise known as The Large Companies and Strategic Collectives Unit, the intermediary responsible for processing visa’s.

Can you apply for a Residence Permit if you already live in Spain?

Foreigners already legally residing in Spain may apply for a Residence Permit as long as they meet the requirements established for this type of residence.

If you are interested in applying for the Digital Nomad Visa Encantada will be able to offer legal support to navigate the process. Please bookmark us or get in touch ahead of time.

For any specific questions please feel free to email: maria@encantadaworld.com