Spain has opened up the way for digital nomads to Spain by approving the proposal for Digital Nomad Visa in Spain. In December 2022, the Spanish Parliament gave its final approval to the Digital Nomad Visa and Fiscal Regime for Startups through new legislation.

This new legislation is expected to facilitate the lives of people who work remotely from Spain in their jobs in other countries.

What is Digital Nomad Visa in Spain?

woman enjoying the sea view while holding laptopDigital Nomad Visa is a type of residence permit that allows foreigners to legally live in Spain and work remotely for more than 90 days. It provides a right to residency in Spain for up to 5 years with renewals. The legislation for Digital Nomad Visa is formulated to bestow residency in Spain for non EU citizens who want to work remotely.

The citizens of the EU and EEA can live and work remotely in Spain for up to 90 days. Plus, they only need to register at the local registration hall to stay and work for a longer period. This new law will extend the benefits of becoming a digital nomad in Spain to people outside the EU and EEA zone as well.

This visa has been designed specifically for digital nomads. For this reason, this visa grants different rights and benefits and requires different conditions for application than a regular work permit and other types of visas for Spain. So who is a digital nomad in Spain? People who can do their work remotely from anywhere are considered digital nomads in Spain.

What Are the Requirements for a Spain Digital Nomad Visa?

laptop on table with documents and paperThe requirements and conditions for Spain’s remote working visa is quite detailed. Here are the basic requirements;

• The work should be able to carry out remotely,
• The applicant should be working remotely for at least a year,
• If the applicant is working under a fixed contract, she/he should be working in the same company for at least 3 months,
• If the applicant is a freelancer, she/he should have at least one employer outside Spain,
• The applicant should have authorization from their employer to work remotely abroad,
• The applicant should be earning at least 80% of his/her income outside Spain.

Note: These conditions might be subject to change according to further notice.

Are There Alternatives to the Spanish Digital Nomad Visa?

golden visaIf you’re coming from a country outside the EU or EEA and your reason for coming is working remotely in Spain, then the visa you should apply for is the digital nomad visa. Before this legislation, remote-working people would apply for different types of visas in Spain.

However, acquiring residency in Spain through other visas had some downsides like taxation troubles for digital nomads. Although the benefits of the Golden Visa include precautions for these matters, Golden Visa is not the best option for digital nomads since it requires a substantial amount of investment.

This new legislation brings some additional benefits like tax benefits and aims to remove the hardships for digital nomads to live in Spain.

Why Become a Digital Nomad in Spain?

a man walking while holding a laptop near beachBecoming a digital nomad in Spain might just be one of the greatest ideas ever. This Mediterranean country offers a laid-back and holiday-like lifestyle. Spain is one of the most charming countries in the world with countless sandy beaches, unique landscapes, rich cultural heritage, colorful lifestyle, developed infrastructure, and mild climate.

Exploring the charms of Spain is on the to-do lists of many throughout the world. You can cross this off your list at your own pace by becoming a digital nomad in Spain. Working as a digital nomad provides the desired flexible working schedule to explore new places at lower costs.

Becoming a digital nomad in Spain is also easier compared to other counties. Spain presents comparably better rights and benefits to digital nomad visa holders. Tax relief is one of the outstanding benefits. Tax benefits of living in Spain with a digital nomad visa include the reduction of taxation rate on the income.

There are other benefits of becoming a digital nomad in addition to lower traveling expenses and tax benefits. One of which is the possibility of acquiring permanent residence. The main condition for applying for a permanent residence permit in Spain is having a temporary residence permit in Spain for 5 years. Since a digital nomad visa allows residency for up to 5 years, it can be considered one of the ways to get permanent residence.

Things to Know Before Moving to Spain Like a Digital Nomad

Moving to a foreign country for the first time always comes with challenges. We’ve listed below the essential things to know before moving to Spain as a digital nomad to help you overcome these challenges;

• Where to Live in Spain?

a view in city of spainWork-life balance is one of the important factors when deciding where to live. It’s usually best to live close to your workplace to save time. Since digital nomads can work from anywhere, they don’t have to be bound to just one place. And there are so many beautiful places to visit in Spain. So, touring Spain while you’re working remotely might be the best idea.

If you want to know where to start, we can say that Alicante, Málaga, Barcelona, Murcia, and Mallorca are among the top 5 places for digital nomads to live in Spain. However, keep in mind that tourist areas are usually a little more costly. So, it’s best to make in-depth research before relocating. If you want to get detailed information on where to live in Spain, you can contact our local experts directly without hesitation.

• What Are the Accommodation Options?

a house with sea view while sun getting downSpain has rich accommodation options from compact apartments to large detached houses, luxury villas, and hotels. Although it might be a good idea to stay in a hotel until you learn a bit more about the area, it’s not sustainable due to the high costs.

If you have enough savings, it might be a good idea to buy a property in Spain for accommodation. Even if you don’t plan on staying in one place in Spain, it’s always best to have one fixed place for yourself when you’re living in a foreign country. Plus, you can rent out your house when you’re not using it. This way, you can have an additional regular income to finance your travels.

• What to Know About Taxes in Spain?

pen checking numbers on paperTaxes are charged to improve the infrastructure of settlements and also to provide better public services. So, it’s only normal that the residents of a place contribute to it by paying some relevant direct and indirect taxes. What about digital nomads? Can Spain digital nomads pay taxes for their income as well? The answer is yes.

When foreigners start to live in Spain with a residence permit, they are obliged to pay direct taxes. This includes their income as well. This income does not have to come from an asset or a profit-generating activity in Spain. Incomes coming from outside Spain are subjected to taxes as long as you’re living in Spain.

On the other hand, due to the nature of their lifestyle, taxation conditions are lighter for digital nomads. This new visa provides better tax benefits to digital nomads living in Spain.

• Is It Possible to Settle in Spain As a Digital Nomad?

If you are working in one of the ideal remote working jobs for a digital nomad in Spain, it’s no surprise that you want to settle in this beautiful country. Settling in Spain and obtaining a permanent residence permit is quite possible if you live in Spain with a residence permit for 5 years. Although it was more costly, the Golden Visa program was one of the most popular methods for this purpose thanks to its advantages.

This situation might just change with the new legislation. According to new legislation, a digital nomad visa will enable foreigners to live in Spain for up to 5 years with renewals. This means it can be used for applying for permanent residence.

Hopefully, this brief guide to the new digital nomad visa in Spain has been helpful to you. You can contact us for further questions and to get detailed information on available property options and residence permit applications in Spain.