Spain Digital Nomad Visa: Everything You Need to Know

Spain has become a popular destination for digital nomads, offering a high quality of life, vibrant culture, and excellent work-life balance. To support this growing trend, Spain introduced the Digital Nomad Visa in 2023, allowing remote workers, freelancers, and entrepreneurs to live and work in the country. This visa offers a unique opportunity for digital nomads to enjoy everything Spain has to offer, from its stunning beaches to historic cities, while maintaining their remote careers.

In this guide, we’ll walk you through everything you need to know about the Spain Digital Nomad Visa – how it works, who’s eligible, the application process, and the tax implications. Whether you’re already working remotely or considering making the leap, this visa could be your ticket to a rewarding new chapter in Spain.

Spain’s Digital Nomad Visa is a residence permit designed to attract remote workers, freelancers, and entrepreneurs to live and work in Spain while maintaining employment with companies or clients outside the country.

It was first introduced as part of Spain’s new “Startups Law” in 2023. This visa allows remote workers to enjoy the perks of living in one of Europe’s most vibrant countries while contributing to the local economy.

One of the key features of the Spain Digital Nomad Visa is its flexibility. It enables visa holders to live and work in Spain for up to one year, with the possibility of renewing for an additional two years. For those looking for a long-term stay, the visa offers a potential pathway to permanent residency after five years.

To be eligible for the Spain Digital Nomad Visa, you must meet various requirements.

First, you must prove that you work remotely for a company or clients outside of Spain. This can include freelance work, employment with an overseas company, or owning a business registered outside Spain. The visa is specifically designed for individuals who are not reliant on the Spanish job market for employment.

In addition, applicants must meet a minimum income threshold to ensure they can support themselves while living in Spain. While the exact income requirement can vary, typically it requires you to earn at least three times the Spanish minimum wage.

You’ll also need to provide other documentation, such as proof of international health insurance coverage, a clean criminal record, and proof you have accommodation in Spain.

Once you have your Digital Nomad Visa, there are various ongoing requirements you’ll need to fulfil in order to maintain your status. It’s essential to stay compliant with these requirements to ensure you can renew your visa after the first year and avoid any legal issues while living in Spain.

First and foremost, you must continue working remotely for clients or companies outside of Spain. The visa is specifically for those not engaging in the local job market, so you must be able to prove that you still meet this condition. If your employment situation changes or you begin working for a Spanish company, you could lose your visa eligibility.

In addition, digital nomads on this visa are required to maintain valid international health insurance coverage throughout their stay in Spain. This can be through private health insurance or, in some cases, through the Spanish public healthcare system, depending on your residency status and the details of the visa.

You may also need to report your income regularly to the Spanish authorities to ensure you continue meeting the financial requirements set for the visa.

To start the application process, you’ll need to gather proof of employment or self-employment, which shows that your work is based outside Spain. This could include contracts with overseas clients, proof of freelance income, or an employment letter from a company that is not based in Spain. Plus, you will need to provide evidence of your income, which should meet the minimum threshold specified by the Spanish authorities.

Once you have all the required documentation, you can apply for your Digital Nomad Visa through the Spanish consulate or embassy in your home country. Alternatively, if you are already in Spain, you may be able to apply for the visa from within the country, though this may depend on your current immigration status.

The application typically involves filling out forms, submitting your documents, and, sometimes, attending an interview. Processing times for the visa can vary, but generally, you can expect to wait a few weeks to a couple of months for a decision to be finalised.

If your application is approved, you will receive your Digital Nomad Visa, which allows you to live and work in Spain for up to one year. This visa can be renewed for an additional two years. After five years of continuous residence under this visa, you can apply for permanent residence in Spain.

Throughout the process, it may be beneficial to consult with a legal expert or immigration advisor to ensure that your application meets all the requirements and to navigate any complexities.

It’s vital that digital nomads living in Spain understand the tax implications to avoid any unexpected financial surprises.

One of the most important factors to consider is your tax residency status. If you live in Spain for more than 183 days within a calendar year, you will likely be considered a tax resident of Spain and will be required to pay taxes on your worldwide income. However, if you spend less than 183 days in Spain, you may remain a tax resident of your home country (provided you don’t have strong financial ties to Spain, such as property or business interests).

Spain has tax treaties with several countries to prevent double taxation. These treaties typically allow you to avoid paying tax on the same income in both Spain and your home country. However, it’s important to note that even if you qualify as a non-resident for tax purposes, any income earned within Spain, such as rental income or profits from a business operated within the country, will still be subject to Spanish tax laws.

In addition to income tax, digital nomads in Spain may be subject to other taxes, such as the Value Added Tax (VAT) on services given to Spanish clients, or social security contributions if you are self-employed. It’s advisable to consult a tax professional who understands both Spanish tax laws and international tax treaties to ensure that you are fully compliant and taking advantage of any exemptions or credits available to you.

If you’re moving to Spain, make sure you have access to the best possible healthcare with health insurance for digital nomads. Expatriate Group provides flexible, comprehensive health insurance policies specifically designed for expats living and working abroad. Get a quote today.