Digital Nomad Visa with Modest Income Requirement and Six Years of Low or Zero Taxes
A move to Spain can be an amazing experience for the culture and the pleasant climate the country offers. However, until recently immigration procedures were clunky and taxes were high. This is changing as Spain seeks to attract entrepreneurs to jump start its economy. Spain has introduced a digital nomad visa to entice new residents to live in Spain. The digital nomad visa for Spain comes with tax benefits too. Anyone who hasn’t been a resident of Spain in the last 5 years can take advantage of them.
Unlike some other digital nomad schemes, Spain is keen to attract long term residents to the Mediterranean country. Although visas are initially issued for one year, they can be renewed for up to 5 years. After 5 years permanent residency is available.
Who Qualifies to Move to Spain with a Digital Nomad Visa?
Any non-EU citizen can apply to move to Spain with a digital nomad visa. You van be self employed or an employee of a non-Spanish company. If you’re self-employed, Spanish companies can’t account for more than 20% of your total income. Anyone who’s been staying in Spain illegally can’t apply for this visa.
How to Apply
You’ll have to show that you’ve been working for clients or a company for at least 3 months. The company you’re working for must have been in operation for more than a year. You’ll also have to provide evidence that you can work remotely. You should have at least 3 years work experience or have a business qualification.
The most important thing to demonstrate is that you have sufficient income to support yourself. They want you to show that you earn at least double Spain’s minimum wage. For 2023 that means you have to demonstrate income of at least €28,000 per year. If you’re including family that will be increased by 25% for each family member.
You’ll also have to provide evidence of a clean criminal record in the last 5 years and obtain private health insurance.
You can apply either in Spain or at your nearest Spanish consulate. You’ll need these documents to apply:
National Visa Application Form
2 Passport Photos
Letter from employer or contract of employment
Evidence that the employer has existed for more than one year
Bank statements to prove your income
Evidence of at least 3 years work experience or professional qualification
Proof of clean criminal record
Birth certificates and/or marriage certificates for family members joining you
There’s a small application fee. It normally takes around 30 days for the application to be processed.
Taxes in Spain
The first 6 years of living in Spain can be tax free. Under the so called Beckham law, only income earned in Spain is taxed in the first 6 years that you live there. Non employment income received from outside Spain is tax free. Dividend income and capital gains from outside Spain are tax free. Employment income from Spain or abroad is taxed at 24% up to €600,000 per year. Employment income of more than €600,000 is taxed at 47%.
Spain has a wealth tax for anyone with assets of more than €3m. This applies to all Spanish tax residents. Spain could work well for those that have an independent income from overseas and have assets of under 3m. Of course there is much planning that can be done before you move to Spain to ensure that you fall in to that category.
It’s now possible to move to Spain in a straightforward and tax efficient manner. This makes Spain a valid competitor to Portugal and its Non Habitual Residency Scheme. Citizenship of Spain by naturalization takes longer than most European countries. You have to be resident in Spain for 10 years before it’s possible to apply.(Using other methods it’s possible to apply for Spanish citizenship in just 1 year)
Spain has always had a lot to offer for tourists and winter sun seekers. It’s now wants to encourage long term residents to move to Spain with tax and residency incentives.