Can I work remotely in Spain and pay low taxes? Sure, this is not just compatible, it is now a reality thanks to digital nomad visa in Spain. This residence permit allows foreign workers seeking remote work in Spain to make their dream of living in Spain come true. At Golden Partners, we provide all the details about remote work in Spain, its governing law, and the various options this digital nomad visa offers. Not only can you reside in this wonderful country for up to 5 years, but you can also benefit from low taxes through the expat tax regime, commonly known as the Beckham Law.
get your digital nomad visa now and save on taxes!
Why work remotely in Spain?
When foreigners or Spaniards returning after 5 years abroad look how to work remotely in Spain for a UK company, for US company or for a company of any other foreign country, some of the reasons they decide to work remotely here include the following:
Greater control over your time
Remote work allows you to organise your day in a way that better suits your personal needs. You will enjoy greater flexibility for your family or personal interests, as you eliminate the commute to the office.
Improved productivity
By working from home, you can create a customised work environment that enhances your focus and efficiency. According to Deloitte, remote workers are 15% more productive than those working in a conventional office.
Reduced expenses
Remote work not only reduces transportation costs but can also help you save on other daily expenses, such as eating out or office attire. However, cities like Madrid offer highly subsidised public transport for young people.
Access to job opportunities
Working remotely opens the door to job opportunities in companies from anywhere in the country, and even abroad, allowing you to seek jobs that better align with your skills and aspirations.
Contribution to environment
By opting for remote work, you will be reducing your personal carbon footprint by minimising the need for daily travel. This choice can align with your personal values of sustainability and environmental protection.
Continuous technological adaptation
Remote work encourages the use of digital tools that facilitate efficient collaboration and communication. This improves your ability to perform in your current job & enhances your technological skills for future opportunities.
Working remotely in Spain thanks to the digital nomad visa
The digital nomad visa in Spain is a residence permit designed for international workers who asked themsleves: Can I work remotely in Spain? It is intended for those who reside outside the European Union and wish to carry out their professional or work activities remotely for companies located outside of Spain.
This visa is ideal for remote workers who want to live in Spain while maintaining their employment with foreign companies, offering the possibility to enjoy the country’s quality of life without changing jobs. It is available for employees, freelancers, and contractors alike.
It is estimated that over 150,000 digital nomads live and work in Spain. Most of these professionals are between 25 and 45 years old, reflecting the growing trend of young workers choosing to enjoy the benefits of remote work in Spain.
The Telework Law in Spain was regulated in 2020, requiring that remote work must always be voluntary and agreed upon between the company and the worker. Remote workers have the same rights as those who work on-site, including remuneration, rest periods, and health protection. Additionally, the company must cover the costs related to equipment, tools, and expenses incurred by the worker for working remotely.
The digital nomad visa in Spain is covered by the Startup Law, which was approved just a year later (and can be consulted in the Official State Gazette). It was established as the first major regulation, not only fiscal, that provides greater protection for foreign citizens seeking to work remotely in Spain.
Spain has always been a popular destination for digital nomads, thanks to its pleasant climate, vibrant cities like Madrid, Barcelona, Marbella, and Valencia, and an affordable cost of living.
Previously, visa restrictions limited their stay to 3 months as tourists, preventing them from working legally. However, with the new digital nomad visa, freelancers and remote workers from outside the EU can reside and work legally in Spain for up to 5 years, after which they can acquire permanent residency if they wish. This represents a unique opportunity for those who want to combine their career with the quality of life offered by one of Europe’s most attractive destinations. The future of remote work in Spain is now a reality, and more and more people are embracing it.
Requirements to obtain the digital nomad visa
To work remotely in Spain without worrying about overstaying your tourist visa, you must meet the following requirements to obtain the digital nomad visa, allowing you to stay for renewable periods of three years plus an additional two years:
- Have at least 3 months of employment with the company or relationship with the client.
- Hold a university degree or have 3 years of professional experience.
- Provide a bank certification in your name showing a balance of 25,000 euros.
- Present a criminal record certificate from your country of origin or the nation where you have resided for the past 5 years.
- Have private health insurance that must be maintained throughout your stay.
- Demonstrate that the company you work for has real and ongoing activity.
- Provide documentation proving that your work or professional relationship with the company is conducted remotely, along with documents that outline the terms and conditions of it.
Benefits of working remotely in Spain
When you obtain your digital nomad visa in Spain, you can enjoy four work-related, fiscal, and personal benefits from working remotely in our country:
Stay in Spain for up to 5 years
You can apply for a residence permit in Spain to work remotely for additional periods of up to three years, renewable for another two years, as long as you maintain your remote job, have sufficient income for your sustenance, and have private health insurance. Additionally, from the second year, if you are a citizen of a Hispanic American country or another nation with historical ties to Spain, you can apply for Spanish nationality. Also, from the fifth year, you can obtain permanent residency in Spain.
24% tax on part of your income
You can benefit from the expat tax regime, known as the Beckham Law, under which you will be taxed at a 24% rate on your first 600,000 euros of income in your IRPF (Personal Income Tax), with the excess taxed at the marginal rate, during the application year and the following five years. Except for your salary, only income from Spanish sources would be taxed: thus, foreign income would not be subject to taxation in Spain.
Exemption from Wealth Tax and Model 720
You will not have to pay the Wealth Tax or submit Model 720, which is the declaration of assets and rights abroad. This way, the Spanish tax authorities will not know about the assets you hold in your country of origin.
Benefits extendable to close family members
The spouse and children under 18 accompanying the visa holder can benefit from the Non-Resident Tax, provided the same conditions are met during the remote work stay in Spain.
How to apply for the digital nomad visa
To work remotely in Spain and obtain the digital nomad visa, you must follow these steps:
- First, check if you meet all the preliminary requirements mentioned in this post (employment contract or employment letter, proof of income, health insurance).
- Second, prepare all the documentation: your passport with at least 6 months of validity, a criminal record certificate from your country of origin or where you have resided in the last 5 years, and finally, a document that proves your residence in Spain (such as a rental contract or ownership of a property where you will register to live and work remotely).
- Once these requirements are met, go to the Spanish consulate or embassy abroad to apply for the visa using the corresponding form.
- Pay the fees: currently around 70 euros (approximately 76 US dollars) at the Consulate General of Argentina, for example.
- The consulate or embassy will review the application and documentation, a process that can take from one to three months.
- Once in Spain, you must apply for the TIE (Foreigner Identity Card) within 30 days of your arrival at the immigration office or the police station corresponding to your place of residence. Additionally, our team always recommends another additional procedure: registering at the City Hall in the place where you will reside.
Although it may seem like a straightforward process, our lawyers always recommend starting the application process 3 months in advance and, without a doubt, seeking expert assistance if you want to expedite the process as much as possible.
With Golden Partners, you will feel supported throughout the entire process of obtaining the digital nomad visa in Spain. Our team is made up of expert immigration and tax lawyers who will help you obtain your visa in compliance with Spanish legislation.
Contact us through our contact form to make your inquiry without obligation.
