Many digital nomads have been eagerly awaiting Spain’s new digital nomad visa. The only option for expats in the past was to apply for a working visa, stay on a tourist visa or apply for a retirement visa.
However, Spain’s government has approved a new digital nomad visa, which will likely be introduced next month. This digital nomad visa program is a global stand out, as digital nomads can stay in Spain for up to 5 years on this visa. Furthermore, digital nomads who stay in Spain long term may be able to qualify for permanent residency. This digital nomad visa is an excellent option for expats from Europe, the United States, Canada, and other countries looking for temporary or permanent residency in Europe.
City of Arts and Sciences in Spain
Spain’s government passed the Start-Up Act in December 2021 to help support entrepreneurs and digital nomads who want to live in Spain. This start-up act supports entrepreneurs in Spain, including Spanish nationals and digital nomads who plan to live in Spain. Spain’s new digital nomad visa is relatively unique. The government seems more interested in attracting long-term digital nomads instead of just having digital nomads stay in Spain for 6-12 months. Although the start-up law mainly promotes local companies and Spain’s economy, the act still supports digital nomads who want to live in Spain and work for companies outside Spain.
Spanish Square of Seville, Spain
The new digital nomad visa in Spain should be available sometime next month. The income requirements are not set yet but will likely be around 2-3x the country’s minimum wage, at €2,100-3,150/month ($2203-3303 USD/month). This amount would be in line with other programs in Europe, including Croatia, Portugal, and Romania, to name a few. Other benefits of this digital nomad visa include lower taxes, a longer visa length, and the potential to become a permanent resident later.
Relevant content: The Basics Of How To Get A Second Passport Or A Second Residency
Cala Santanyi Mallorca Spain coastline
Reduced Taxes: The Spanish government has decided to reduce taxes for digital nomads from 24% to 15%. These tax benefits could be a solid option for digital nomads who want to establish Spain as their tax residence to avoid paying higher taxes in their home country. This tax rate applies to all digital nomads who earn less than $600,000/year ($629,220 USD).
5-Year Visa: This digital nomad visa is a superior option for someone who wants to spend more than 1-2 years in one country. Most digital nomad visas only allow applicants to stay in the country for 12 months, so this digital nomad visa program is unique.
Flexibility: This visa is not for someone who wants to work for a company in Spain. However, the current terms are more flexible than other digital nomad visas. The applicant must earn at least 80% of their revenue from companies outside of Spain. If a digital nomad enters Spain on this visa and decides to work for a local company, they will have to apply for a different visa.
Palace in Madrid, Spain
A Path to permanent residency: Applicants can renew their digital nomad visa annually for the first five years. After five years, they can apply for permanent residency. This fact makes the Spain digital nomad visa easier to gain permanent residency in Europe without investing anything. Many European programs require applicants to make a minimum investment of $100,000 USD or more to become permanent residents.
Lower cost of Living: The minimum wage in Spain is only around $1,000 USD/month, which is slightly lower than that of other countries like Canada, the United States, and some European countries. Digital nomads can lower their living expenses and taxes by relocating to Spain.
Business Environment will Improve: Spain will be able to establish itself as a strong business and tech hub in Europe. This bodes well for digital nomads who have a long-term interest in Spain and Europe and want to establish themselves in the region.
Internet speed and costs: As a digital nomad, we know that internet connection and speed are essential since you work online. Spain has good internet for a very good value being able to hire 600 Mb speed fibre optics for less than $40 USD. Reliable, fast and cheap, that’s always a good combo for nomads.
Barcelona, Spain
This digital nomad visa is a solid option for digital nomads from Europe, the United States, Canada, and other parts of the world. However, not all benefits, such as the lower tax rate, will equally benefit everyone. The program should provide tax benefits for people from most countries.
Europe: Expats from Europe can take advantage of this digital nomad visa to improve their mobility and explore new economic opportunities in Spain. Some European digital nomads may also lower their tax rates by relocating to Spain, as they will qualify for a relatively lower tax rate of 15%. Notably, the 15% rate applies to anyone who earns up to €600,000/year ($629,220 USD). Many people who earn six figures in Europe may have to pay 40% or higher in income taxes. Finally, the cost of living in Spain is slightly lower than that of other European countries. Digital nomads can take advantage of the lower cost of living in smaller cities in Spain.
United States: For Americans, there can be ways to avoid double taxation. You can use one of the two methods from Foreign Earned Income Exclusion or the Spanish-American treaty. For more information, you should contact me here.
Cordoba, Spain
Although the visa application is currently closed, there are still steps you can take to prepare for your application. Every digital nomad visa application requires you to provide supporting financial information, and many digital nomad visa applications require similar information like health insurance and other information. You can start by gathering all the financial information you have for your business or your tax returns and financial information and begin researching global health insurance policies.
Expat Money has covered a lot of digital nomad visa programs, and this is one of a small handful of options that provides an easy way for digital nomads to stay for up to five years in a country.