How to work remotely from Spain: Your ultimate guide to the digital nomad life

In recent years, Spain has emerged as a coveted destination for digital nomads and remote workers around the globe. With its sunny climate, rich culture, and vibrant lifestyle, it's no wonder that many are drawn to the idea of working from this picturesque country. However, before packing your bags and setting up your mobile office on a beach in Barcelona or a café in Madrid, there are several critical factors to consider, ranging from taxes and visas to the overall process of transitioning into a digital nomad in Spain.

What is the Spain Digital Nomad Visa?

Spain's Digital Nomad Visa offers an exciting opportunity for remote workers worldwide to live in one of the most culturally rich and scenic countries in Europe while continuing to work for a company based outside of Spain or service international clients. In early 2023, Spain introduced this visa tailored for non-EU remote workers, aptly named the Digital Nomad Visa (officially in Spanish: Visado teletrabajadores de carácter internacional)

As of April 10, 2024, this visa caters to freelancers, entrepreneurs, and employees who can perform their roles remotely using digital technologies. The initiative aims to attract and retain international talent by making it easier for digital nomads to enjoy Spain's lifestyle and work culture.

Spain Digital Nomad Requirements

The Digital Nomad Visa is open to any foreign national planning to reside in Spain while working remotely for a non-Spanish employer or as a self-employed individual. However, there are specific eligibility criteria to be met:

• Applicants must have either an undergraduate or postgraduate degree from a recognised university, college, or business school, or a minimum of three years of work experience in their current profession.
• Work Restrictions: The work should be primarily for non-Spanish companies. Freelancers can work for Spanish businesses, but it should not constitute more than 20% of their overall workload.
• Minimum Income: A minimum income of 200% of the Spanish Minimum Income (SMI: Salario Mínimo Interprofesional) is required. For 2024, the SMI is set at €1,323 (12 payments a year). This would mean a minimum monthly salary of €2,646 for the applicant.

For the first family member joining the applicant, an additional amount equalling 75% of the SMI (Salario Mínimo Interprofesional) would also need to be proven. That would equate to €992.25 a month. Any additional family member after that would require an extra €330.75 of additional monthly income, equalling 25% of the SMI.

• Employment Criteria:
  • For employees: A minimum of three months working with a non-Spanish company is required, and this company should have been in operation for at least a year.
  • For freelancers: A three-month relationship with non-Spanish clients is required.
• Duration of Contract: The work engagement should be expected to last for at least a year.

Can I work remotely in Spain on a tourist visa?

You can enter Spain on a tourist visa to begin your application process for the Digital Nomad Visa, but you cannot legally work remotely for long-term under the tourist visa alone. Your work period would be limited to 3 months.

Can I work for Spanish Companies with the Digital Nomad Visa?

Yes, but only up to 20% of your total work. The main intention is to service clients or companies outside Spain to benefit from the Digital Nomad Visa.

How to apply for the Digital Nomad Visa in Spain

Option 1: Applying from Your Home Country

The acquisition of the Spain Digital Nomad Visa will take place at the Spanish Consulate in your country of residence or origin (you must reside within the consular district).

Before applying for the Digital Nomad Visa, applicants must obtain an NIE number (Número de Indentificación Extranjero - Foreigner's Identification Number), which is mandatory for all foreign residents in Spain. A NIE may be requested directly in Spain or at the Consular Office of the applicant's country of residence. The request may be made in person or through a duly accredited representative as well.

The required documents for both the worker and their family members include the following:

1. A completed national visa application form.
2. A recent passport-size colour photograph.
3. A valid passport, with at least one year's validity and two blank pages.
4. Criminal record certificate from the past two years, with a declaration of no criminal record in the last five years.
5. Proof of residence in the consulate's jurisdiction.
6. NIE (Número de Indentificación Extranjero) or the Application for a temporary NIE.
7. Visa application fee payment and consultar fees which vary by country.
8. Form 790 for the fees to be paid (code 052), which varies by country.
9. Public or private health insurance coverage is equivalent to Spain's public health service.
10. Certification of employment or self-employment, detailing the remote work arrangement. For example, a letter from a foreign company, authorising the development of work remotely from Spain accrediting job profile, salary to be received, terms, and other conditions under which the professional activity at a distance will be carried out.
11. Proof of financial means, with at least 200% of the SMI (Spanish national minimum Income) for the applicant, and additional funds for family members as mentioned above.
12. A copy of the corresponding university or professional diploma or evidence you have been carrying out your professional activity for at least three years.

If you happen to be applying from the UK you can download this official checklist to ensure you have collected all the necessary documentation. If you are applying from a different country, the requirements will be the same, but you should download it from the Spanish consulate website in your country of origin.

Specific documents related to employment, company nature, social security registration, professional qualifications, and family relationship evidence (for family members) should be apostilled (officially certified), and translated by an official translator.

Applications must be submitted in person, either by the applicant, a parent (if the applicant is a minor), or a duly accredited representative. Be aware that the Consulate may request additional documents, an interview, or both. The legal deadline for a decision is 10 days, extendable if further information is required. Once approved, the visa must be collected in person within one month from the notification date. The average time to receive the visa is approximately 20 days.

Option 2: Applying Within Spain

Another major (and lesser-known) advantage of this Spain Digital Nomad Visa is that it can also be applied for from within Spain on a tourist visa and directly obtain a 3-year visa. The department responsible for this visa is the Ministry of Migrations, specifically the Unit for Large Enterprises and Strategic Collectives (UGE - Unidad de Grandes Empresas).

1. Prepare all necessary documents in advance, as described above, including official certifications and translations.
2. Enter Spain on a tourist visa, which usually permits a three-month stay.
3. Apply electronically before the Unit of Large Enterprises and Strategic Collectives (UGE).
4. Once approved, you'll receive a residence permit.

Do digital nomads pay tax in Spain?

As a digital nomad in Spain, you're subject to Spanish tax laws:

• Spanish Tax Residency: If you reside in Spain for more than 183 days in a calendar year, you're considered a Spanish tax resident.
• Primary Residence Taxes: If you spend more days in Spain than in any other country, Spanish taxes are applicable even if you work for a foreign entity.
• Remote Employees: Income earned from a non-Spanish company, including perks, is taxable in Spain.
• Freelancers in Spain: Freelancers must register with Spanish Social Security and tax authorities and are liable for VAT, as well as quarterly and social security contributions.

How long can you work remotely in Spain without paying taxes?

You can work remotely in Spain without paying taxes only during your temporary stay under the tourist visa, typically three months. Once you become a tax resident, you’re obliged to pay taxes in Spain.

The Beckham Law: A Game Changer for Digital Nomad Taxation

A significant highlight of the Digital Nomad Visa is the opportunity to apply for the Beckham Law. This special tax regime is a game-changer for digital nomads, allowing them to enjoy non-resident tax benefits despite residing in Spain for over 183 days. The Beckham Law ushers in an exceptional tax framework:

• A flat income tax rate of 24% on work-related income up to €600,000, thereafter a rate of 48% applies. This is considerably beneficial compared to the general progressive tax rate.
• Exemption from filing the model 720, declaring worldwide assets, which is a requirement for residents.
• No wealth tax.
• Reduced capital gains tax, varying from 19% to 28%.

To qualify for the Beckham Law, you cannot have been a legal resident in Spain for the last five years, and your move to Spain must be work-related. Eligible individuals have six months following their digital nomad visa approval to apply for this regime at the tax office, enjoying non-resident tax benefits for five years plus the application year before transitioning to the general resident regime.

If you do not qualify for the Beckham law you will be subject to the standard income tax rate in Spain on worldwide income as shown in the table below. Read our article for more information on the taxes and fees freelancers pay in Spain.

Taxes for Off-Shore Companies

For digital nomads with businesses offshore, Spanish taxation depends on the structure of earnings, distinguishing between employment income and dividends. Specific tax rates apply depending on your company's structure so we advise you to seek professional advice from a tax expert to better understand your tax obligations.

Spain unlocks a dynamic blend of cultural richness, accommodating immigration policies for non-residents, and a friendly environment for digital nomads. Ensure you have professional advice to navigate the paperwork smoothly and relish the Spanish sunsets while staying on the right side of the law. Why not consult a tax specialist from our directory and begin your journey to Spain?