Are you an American digital nomad dreaming of soaking up the sun while working remotely in Spain? You’re not alone, as Spain has been rated the number one destination for American digital nomads globally in 2024. The newly introduced Digital Nomad Visa could be your ticket to turning your dream into a reality. Spain’s digital nomad visa, officially known as the “Visado de Trabajar a Distancia” or “Non-Lucrative Residence Visa,” is designed to attract remote workers, freelancers, and entrepreneurs from around the world.
This visa allows eligible individuals to live and work in Spain for an extended period, offering a high quality of life in one of Europe’s most vibrant countries. In this guide, we’ll walk you through the requirements and steps for obtaining and maximizing Spain’s Digital Nomad Visa, covering everything from the application process to the tax advantages it offers.
- Qualifying for Spain’s digital nomad visa
- Required documentation and supporting papers
- Unlocking the tax benefits of Spain’s digital nomad visa
- Can you work for a Spanish company?
Qualifying for Spain’s digital nomad visa
The digital nomad visa is open to non-EU citizens who fulfill these criteria:
Employment: You must work for a non-Spanish company or have freelance clients outside Spain. If working with Spanish companies (which you are allowed to do) your income from them should not exceed 20% of your total.
Work duration: Show at least three months of employment with your current company, with a minimum one-year contract. Freelancers need a minimum three-month work history with clients.
Experience and education: Possess three years of relevant work experience in the field you’re currently working in, and hold a degree from a recognized university.
Clean record: Provide evidence of a clean criminal record and no ban from entering Spain.
Visa fees: Expect an application fee of approximately €80, along with expenses for document translation, apostille, and obtaining a criminal record certificate.
Financial stability: The primary applicant will need to show that their income is at least 200% of the monthly Spanish national minimum wage, which is around €2100 per month, with an additional 75% of the minimum wage for the first dependent family member, and additional 25% for further dependent family members.
For employees with contracts from foreign companies: The company has operated for at least one year before your application. Additionally, the company must confirm that your role permits remote work and explicitly authorizes you to do so.
Freelancers: You must demonstrate engagement with at least one company outside Spain, and the contract terms must explicitly allow for remote work.
Here are two pathways to obtain the digital nomad visa:
- Arrive in Spain on a tourist visa and apply for the Digital Nomad Visa while in the country.
- Obtain a one-year permit from a Spanish embassy or consulate in the US.
Once you’ve submitted your application, anticipate a quick turnaround with a response normally provided in 20 days. Following this, a visit to the police office is necessary for fingerprint registration and issuance of your residency card.
Another advantage of the Spanish digital nomad visa is that it permits you to bring your family members along, offering an exciting opportunity for parents envisioning raising bilingual children.
Another compelling benefit for American digital nomads and remote workers is the freedom to travel unrestricted within the Schengen Area, encompassing 27 European countries that have abolished border controls among themselves. Essentially, it unlocks Europe for you, offering a multitude of cultural experiences within easy reach.
Required documentation and supporting papers
- Passport: Ensure your passport has validity beyond your planned stay in Spain.
- Remote work or self-employment proof: Provide evidence of your employment or self-employment status, including contracts with employers or clients, or business registration papers. These documents should indicate your association with non-Spanish entities.
- Income verification: Establish financial stability through bank statements, tax records, or evidence of consistent earnings.
- Health insurance: Provide proof of health insurance from an insurer recognized and authorized to operate in Spain.
- Accommodation proof: Provide documentation confirming your accommodation arrangements in Spain, such as a rental agreement or hotel booking.
Unlocking the tax benefits of Spain’s digital nomad visa
The appeal of Spain’s digital nomad visa extends beyond residency benefits, offering enticing tax advantages for holders. Under this visa, remote workers employed by foreign companies can benefit from a special tax regime known as the Non-Resident Income Tax Regime.
Unlike regular residents in Spain, digital nomads pay a flat tax rate of just 24% on income generated, compared to the progressive rates reaching up to 48% for residents.
To qualify for this tax benefit, applicants must meet certain criteria, including not having resided in Spain for the past five years. Additionally, they must undergo a separate application process with the Spanish Tax Agency within six months of obtaining residency authorization.
This favorable tax regime remains valid for five years as long as the individual maintains their digital nomad residency status, after which they transition to the general tax regime
Can you work for a Spanish company?
The digital nomad visa permits non-EU citizens to work remotely from Spain, typically for a foreign company. However, you can also work for a Spanish company or client under certain conditions. Firstly, you must maintain your employment relationship with the foreign company that facilitated your visa approval. Additionally, income earned from the Spanish company should not exceed 20% of your total income.
Wrapping up
Spain’s Digital Nomad Visa presents an exciting prospect for Americans seeking to work remotely in Europe. With its simplified application process, tax advantages, and flexibility for collaborating with foreign companies, it’s an appealing option for those eager to blend work with exploration. Whether you’re enticed by Spain’s diverse culture, picturesque landscapes, or vibrant cities, securing this visa unlocks a wealth of opportunities in one of Europe’s most captivating destinations. So, if you’re an American digital nomad ready to embark on your next adventure, Spain awaits with open arms.
If you have any questions about financial planning or investing as an American living in the EU, get in touch.
This article is for informational purposes only; it is not intended to offer advice or guidance on legal, tax, or investment matters. Such advice can be given only with full understanding of a person’s specific situation.