Dreaming of late evenings in stunning tapas bars and weekend trips to some of Europe’s best beaches? It has been anticipated for over 16 months, and Spain’s Parliament has finally given the “go-ahead” to a new startups and digital nomad law which paves the way for a new generation of visitors and nomads to use Spain as “home” base.
If you are considering living and working in Spain, this new law will bring tax benefits and other perks to digital nomads, entrepreneurs, and remote workers. Perhaps most compelling for remote workers, are the details of Spain’s New Digital Nomad Law.
As the world embraces this exciting trend, it’s clear that lovely Spain wants in, too.
Spain’s Startups And Digital Nomad Law
The expectation is that this long touted, but brand new digital nomad law will take effect on January 1st, 2023. The nuance of the tax laws and when new fiscal laws will take place for dealing with tax from 2023 is a huge motivator for speedy approval.
Basically, this means there is a financial incentive for the Spanish authorities to have the law operating by January 1st.
The startups law known as Ley de Startups still needs approval in the Spanish Parliament, which is expected in January 2023. With significant legislative support, it should be ratified easily within the coming weeks.
Broad stroke, the law will be open to those from the EU or third countries — aka those outside of Europe where there will be considerable interest – as long as they have not been a resident in Spain in the previous five years.
Major Points – Spain’s New Digital Nomad Law
The most compelling part of the legislation is Spain’s New Digital Nomad Law. This legislation has several awesome benefits for digital nomads.
There is a specific definition of a digital nomad, and the new law defines a digital nomad as “people whose jobs allow them to work remotely and change residence regularly.”
The significant points include the following:
- Tax Breaks For Digital Nomads
- A New Visa for Digital Nomads
- Extension of Foreign Student “Stay Period” Post Graduation
Tax Breaks and New Digitial Nomad Visa
Benefits include a tax rate reduced to 15 percent for investors, start ups and remote workers who find income in Spain, as long as they comply with the residency rules and do not stay for more than 183 days in a year.
This tax rate is a further reduction of the non-resident income tax (IRNR) of approximately 25%, and will also specifically apply for digital nomads. Digital nomads will also enjoy this 15% tax rate and will be able to stay longer
The new law creates a digital nomad visa offering a year in Spain, which can be extended to a residence authorization of two years — and then an additional five years. Stay a while, maybe?
While the Digital Nomad Law section of Ley de Startups is relatively straightforward, you will want to study things further if you’re really considering basing your startup in Spain.
Several requirements, including “a need for innovation,” must be accredited both for this status and that of an ’emerging’ company. There is the potential for a corporate tax rate reduction to 15 percent for up to four years.
Rise In Digital Nomad Offerings
The digital nomad life is a fun and adventurous lifestyle, fabulous for those who can take advantage of the freedom, even if only for a few years. There’s nothing quite like the travel joy of immersion, bringing deep understanding of a destination.
From Colombia to Vietnam to Dubai, Barbados, Mexico and many-many more, there’s been a huge uptick in destinations attempting to lure long term visitors in.
Countries now believe it’s a lot better to have people spending money in the country and therefore supporting local businesses and creating tax revenue than arbitrarily being kicked out. Nomads typically bring robust support of cafes, restaurants and neighborhood shops, while filling apartment vacancies.
With Spain’s big announcement, there’s lots of good news here for digital nomads, which leaves just one additional, exciting decision, and that’s where in Spain you may actually want to live. This chilly time of year, it’s tough to beat Valencia or Mallorca, but the classic Madrid or Barcelona is always a fun debate.
Hahahah. You forgot to mention that you need an income of about 2500 euro per month…
“FlexJobs poll, CDC International Shipping statistics, and findings by Project Untethered all agreed on how much digital nomads make, and it is usually between $50,000 and $99,999 annually. These statistics on digital nomad income also state that the majority of remote workers make between $10 and $30 per hour based on their qualifications, experience, and industry.”
That would equate on the low end to $4100 USD or $4126 Euro per month.
Source: https://citizenremote.com/blog/digital-nomad-salaries-in-2022/
Where are you coming up with that low end? $10 an hour is $4100 a month?
Oops!
$4100 at $10 per hour is the equivalent of 410 hours per month which equates to working 14 hour days for 7 days every week in a 30 day month at the low end.
As always with averages I would expect the average wage to be squewed by a few big hitters.
The $2500 may even equate to the upper quartile.
this is very tempting!
The sort of people that the digital nomad visa is aimed at are software developers etc. Most experienced developers earn a lot more than 2500 euros a month.
Currently to apply for a NLV visa for one person you need a income of approximately €30,000 per year and a private health care insurance…and you are not permitted to work in Spain…so I can’t see the Spanish government permitting the so called Digital Nomads to have a Visa unless they earn considerable more money than this.
How can I apply for remote workers visa? What are the requirements?
Sounds prommesing however to work digitally you need a modern reliable internet connection – wich is kind of strange as in the whole of spain there is no IPv6 number optainable – none of the ISP’s are willing to go that way.
Frankly it’s disgusting that digital nomads will benefit from lower taxes than actual Spanish citizens and residents. As a local, I’d much rather the nomads fucked off elsewhere and didn’t contribute to rising rents already surging from over tourism. The heart and soul is being ripped out of our most historic and culturally important cities just to accommodate short term residents with no real connection to Spain other than to enjoy our weather, our architecture, our infrastructure and services and still not even pay full tax for it all. Go away. You aren’t wanted by locals.
One big mouth on the internet speaks for all of Spain? LOL. Loudest voice is rarely the most accurate, loved or truthful.
Take a look at how much your economy relies on these people who are there to enjoy your weather and architecture.
What else you got? I’d say there are tens of thousands of locals who very much want these people. But you know best!
Wow, “we come here to vomit on your pavements, so you should bow down to us and be grateful for the crumbs we deign to toss your way” is certainly a take. Sadly, I can’t even say I find it surprising.
I agree completely, Alex.
Totally agree. Retirees on Social Security spend more and get taxed at regular Spanish rates. If people really want to see how much digital nomads spend–check out a facebook page or forum. They are usually looking for the cheapest deals possible. The places with a lot of nomads just want them to leave because there are rental shortages and it is causing housing issues. Spain does not need this–there is already a housing crisis.
The only things you mention about life in Spain are leisure pursuits. Did it ever occur to you that living here should involve becoming part of the local community? Learning at least one, but possibly two new languages? Giving back something to the place you’re living in? Don’t come here to be parasitical drains on local communities. Only move to places where you’re willing to integrate into them
I’m an advocate for learning languages and for learning as much about local culture as possible, while embracing as much as you can. With that said, I don’t see how “leisure pursuits” at all run contrary to any of those things LOL. #theinternet
But they are the *only* parts about living here that the article mentions. As an English speaker, would you be willing to learn two new languages to fit into your local community? There are many Brits here (Americans do try a bit harder) who’ve lived here for decades & can’t manage much more than ordering a beer. And that’s just their Spanish. Tell them they should learn the regional language and they sneer at you as if they were the lords and the people whose home they’re in are the peasants.
Hello,
I for one happens in here, part time for 17 years in Mallorca , Spain. And I agree with you completely Maria I am going to get the nomad visa. I have always respected the traditions and the pace of life here hopefully others will take heed and remember that they are guest. I don’t want nothing to change here it’s what makes Spain such a great place.
I was considering the Visa, I intended to find an inland area small Spanish town, not tourist area where I could integrate and learn Spanish and culture, foods, but I’m not so sure after reading these messages. Workers don’t tend to go for tourist spots or over crowded cities, it’s the small town or village that is attractive, and the local business enjoy the boost.
the anti foreigner comments on this article are hilarious from spain, a country that literally smashed up, looted and colonized a big chunk of an entire continent in the americas. Ps: those guys delivering your amazon orders, cleaning your offices and serving you coffees are migrants from latin america, and they get treated like shit by your authorities. so quit complaining about foreigners, the country would collapse without them.
Being a digital nomad usually means that the entrepreneur has an online business. So they travel around a fair bit. Being tax registered is different to being resident.
People who want to opt out of the Spanish tax system as freelance or digital entrepreneurs and have an online business can become digital nomads of Estonia. Which means you become tax resident not actually resident of Estonia.
Just do a quick Google search.
Might help reduce your taxes. 😉😉