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What is the Spanish Digital Nomad Visa (DNV)?
The DNV is for non-European citizens who wish to work remotely from Spain, either as freelancers or as employees of a foreign company.
What are the requirements to apply for the DNV?
- Not to be a European Economic Area (EEA) citizen.
- Be able to show that the applicant’s professional services or work is suitable to be carried out remotely.
- If employed, be able to show that the employment by a non-Spanish resident employer has already been ongoing for no less than 3 months before the application is submitted and that the said employer has been trading for more than 1 year.
- If self-employed, be able to show that the applicant has been providing his professional services for no less than 3 months before the application is submitted to no less than 80% of non-Spanish resident clients.
- Possess a university or professional or business training degree or more than 3 years of professional experience.
How long can I stay in Spain with the DNV?
DNV holders can stay in Spain for up to 5 years.
Does the DNV include family members?
Yes, foreign nationals who benefit from the DNV, can bring to Spain their spouse and children under 18 and over 18 provided that the applicant is able to show that they are still financially dependent on the applicant (for example, the children are in their university studies or suffer from any mental or physical incapacity that prevent them from making a living for themselves).
Where should Digital Nomads pay their taxes?
Digital nomads can pay their taxes either as Spanish tax residents or as a non-Spanish tax residents (under the so called Beckham Law). The “Beckham Law” consists of an optional special tax regime that enables foreigners who move to Spain to pay their income tax as non-Spanish residents, despite becoming de facto tax residents.
Spanish tax residents pay taxes at a progressive tax rate from 19% to 47% depending on the amount of their worldwide income. In addition, depending or their place of residence, they are liable for the Wealth Tax (Impuesto sobre el Patrimonio) or the new tax of the Great Fortunes (Impuesto de las grandes fortunas) whereby by a flat 1,7% is applied to their worldwide assets worth betwen 3 and 5.3 millions of euros; 2,1% to assets valued between 5,3 and 10,6 millions of euro, and of 3,5% to assets valued in excess of 10,6 millions of euro.
In contrast, Spanish non-tax residents - and therefore those within the scope of the Beckham Law - will pay taxes at a flat rate of 24% of their employment or professional gains made up 600,000 Euros and of 45% for any amount above. Any other income not raised within Spain will be outside the taxable scope. In addition, they will not be liable for the Wealth or Great Fortune Tax on their assets located outside Spain.
It should be noted that if the taxpayer is under this special tax regime, double taxation agreements will not apply. Therefore, to consider which system (resident or non-resident) benefits the most, it is necessary to assess the circumstances of each case.
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Written by Laura Gallego Herráez.
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