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The Ultimate Guide to Spanish Digital Nomad Visa 2023. New possibilities for the UK Remote Workers

Content:

1. Who are digital nomads
2. Does Spain offer a digital nomad visa?
  • What made remote work so attractive?
  • Why do Brits choose Mallorca?
3.Startup Law in Spain
  • The Startup law overview
  • Is it hard to get a digital nomad visa?
  • Who and how can obtain a digital nomad visa in Spain
  • Here's who can apply for a Spanish digital nomad visa under the new Act:
  • Types of Digital Nomad Visa in Spain
4. Pros of Spain's new Start-up Law
1. Lower Tax Rates
2. Making the paperwork easier
3. Moving  with family
5. When can I apply for Digital Nomad Visa?
6. Advantages of the Spanish Digital Nomad Permit
7. Challenges of the Spanish Digital Nomad Permit
8. Do citizens of the United Kingdom and the United States of America need a digital nomad visa?
9. Why Mallorca is an Excellent Place to Work Remotely in Spain
1. Nice Logistic
2. English-speaking community
3. English-speaking environment
10. How Yes! Marlloca Property can help digital nomads

remote work in Mallorca

Who are digital nomads

Digital nomads work remotely and move freely around the country and the world.

If, five years ago, there were only a few digital nomads, then during the COVID-19 pandemic, a considerable number of workers became forced digital nomads. And a lot of people appreciated it! Modern means of communication and structural changes in companies made everyday office work less important. Remote work turned from something exotic into a mass phenomenon.

Does Spain offer a digital nomad visa?

A law (Ley de Fomento del ecosistema de las empresas emergentes) was passed by the Spanish government in late 2022. It allows digital nomads and remote workers to obtain a residence permit in Spain. The law will become fully effective in 2023.

What made remote work so attractive?

The work-life balance, flexible schedule, and ability to work anywhere. And as soon as the rigid connection with the place of work disappeared, many began looking for better life options. And Mallorca gradually began to turn from an island for seasonal tourism into a home for remote work.

Why do Brits choose Mallorca?

1.    The relatively low cost of living

2.     Developed transport infrastructure

3.     High-speed Internet

4.     Excellent climate

5.     High Rated British and International Schools in Mallorca

Another undoubted advantage of Mallorca is the developed real estate market. In Mallorca, you can find accommodation for any of your needs: from apartments and apartments on the beach, which can be rented for six months, to a picturesque villa on the slopes of the mountains. You can rent or buy a house in Mallorca and organize the most comfortable workplace for yourself.

Startup Law in Spain

new start-up law in Spain

The Startup law overview

Why are digital nomads and visas being talked about in Spain right now? Many countries seek to attract active people who move the economy forward. Permits for digital nomads are already in place in many countries of Europe and the world, creating attractive living conditions for citizens of other countries. And although Spain is not the first to introduce special requirements for digital nomads on this list, they have thought through much more economical and bureaucratic privileges for entrepreneurs.

Both houses of the Spanish Parliament approved the new Act to Promote the Ecosystem for Emerging Companies (Ley de Fomento del ecosistema de las Empresas emergentes), and it came into force on January 1, 2023.

Visas for digital nomads are only a tiny part of the new Startup Law. After all, first, it is designed to create in Spain a suitable environment for innovative companies’ development. That can increase GDP and attract investment. New types of visas should attract talented and courageous entrepreneurs from all over the world and highly qualified specialists.

The law explains the concept of a startup - an innovative company newly created or operating for no more than 5-7 years, depending on the type of activity, whose office is registered in Spain. At least 60% of employees are Spanish residents. At the same time, to be recognized as a startup, a company does not have to pay dividends and go public with its shares.

Such companies are provided with special tax regimes and tax incentives, such as a reduction in the corporate tax rate from 25% to 15%, lower personal income tax rates for non-residents, an increase in the tax-free amount for stock options, deferment of payment of tax debt with a waiver of guarantees and without interest on arrears and the elimination of double taxation in the case of multiple activities.

In addition to tax benefits, startups will be provided with special administrative conditions that will allow them to quickly register a company and communicate with government agencies through a one-stop shop. They also won't have to pay registration and notary fees when applying online. All this should reduce administrative barriers and make the work flexible and efficient.

Is it hard to get a digital nomad visa?

'Digital nomad' permits are easier to get than ever. If you can meet the requiremtns, you can apply for it online. Below you can find all the rules and regulations explained. 

Who and how can obtain a digital nomad visa in Spain

According to the Spanish startup law, a Digital Nomad is a person who is a third-country national (from outside the European Union) and carries out remote work (by employee contract) or professional activities (commercial or service contract) for companies based outside Spain.

Professionals must be graduates or postgraduates of prestigious universities, vocational training, and business schools or have at least three years of professional experience.

After Brexit, when the UK withdrew from the Schengen agreement, British citizens were entitled to stay in Spain without a visa for a maximum of 90 days. The new startup law allows Britons to move to Spain legally, work remotely and get all the perks of living in the country, including minimal taxes.

Here's who can apply for a Spanish digital nomad visa under the new Act:

1.         Third-country nationals (non-Spanish and EU citizens) who plan to reside in Spain while carrying out professional or work activities through remote work (Sistemas informáticos, telemáticos y de telecomunicación.)

2.         Qualified professionals who certify that they are graduates or postgraduates of universities of recognized prestige, vocational training, and business schools of recognized importance or have a minimum of three years of professional experience.

To be granted a visa, applicants must prove that they can work remotely and earn a steady income from a remote activity for as long as they live in Spain.

- Your work or professional contractual relationship must be uninterrupted for at least one year.

- Document the possibility of working remotely (confirm that the nature of the work you are doing does not require you to be present on the premises of the employing company).

- Prove you have been working for the company (group of companies, entrepreneurs, or entrepreneurs) or an entrepreneur for at least three months before applying for a visa.

- Provide documents from the employing company confirming that the company allows the employee to work remotely. If you are carrying out a professional activity - provide documents confirming the conditions under which you intend to carry out these activities remotely.

Man working on laptop on the beach

Types of Digital Nomad Visa in Spain

1.               Visado para teletrabajo de carácter internacional  — remote visa

This visa is granted in your country of residence for one year so that you can move to Spain. It can be extended while you are already in Spain.

Who can obtain a visa to work remotely in Spain

Non-resident foreigners in Spain who intend to reside in Spain to work remotely for a company not based in Spain must apply for a remote work international visa (el visado para teletrabajo de carácter internacional). The permit is granted for up to one year unless the period of remote work is shorter. In this case, the visa will have the same duration as the period of confirmed remote work.

A visa for remote work will be sufficient to allow you to live and work remotely in Spain for the duration of its validity.

How to apply for the remote work permit

You can apply for this visa at the Spanish Consulate in the UK.

If you wish to remain in Spain, you can apply for a Residencia para teletrabajo de carácter Internacional within 60 calendar days before your visa expires.

2.         Residencia para teletrabajo de carácter internacional for digital nomads in Spain

Where to obtain a residence for digital nomads in Spain:

Residencia can be applied for legally in Spain, for example, by entering on a tourist visa. British citizens can enter Spain and stay for up to 90 days without a permit, which is just enough time to apply for digital nomad residency.

The residence application for digital nomads can be submitted online on the website of The Ministry of Inclusion, Social Security and Migration (El Ministerio de Inclusión, Seguridad Social y Migraciones)

Who can apply for residence for digital travelers

To obtain a residence permit, you must fulfill the same conditions as those for obtaining a visa. - Be a non-EU citizen and have proof of remote work.

This permit will be valid for three years unless you apply for a residence permit for a shorter period of employment.

After three years, the residence can be renewed for an additional two years, provided all the conditions that gave rise to the right of abode are maintained.

This way, you can live in Spain for five years (1 year on a visa or up to 5 years on a residence permit).

Pros of Spain's new Start-up Law

1. Lower Tax Rates

The new law provides a special tax regime applicable to workers, professionals, entrepreneurs, and investors, the so-called "expatriate tax regime."

Individuals (who acquire tax residency in Spain because of moving to Spain) may opt to pay non-resident income tax in the tax period when the change of residence occurs and for five subsequent periods. To do so, they must meet several criteria:·     

  •   they have not been resident in Spain for the five tax periods preceding the one in which they move to Spain.

  • ·they moved to Span either in the first year of the regime or in the preceding year as a result of any of the following circumstances:

  • ·they do not receive income classified as earned through a permanent establishment in Spain (income from Spanish companies), except in some instances. Thus, foreigners working as freelancers in Spanish startups will be eligible for the expatriate tax regime. It allows them to pay IRPF income tax at 24% if their turnover for these companies is at least 40%.

With a digital nomad visa, you can choose which tax regime to use and pay 24% income tax on income up to €600,000 per year. Above this amount, the tax rate will be 47%.

2. Making the paperwork easier

Números y Tarjetas de Identidad de Extranjero will be simplified for digital nomads, and it will be possible to apply online.

It will also be possible to apply for a visa in Spain online, and processing times will be quicker.

3. Moving  with family

The digital nomad visa allows you to bring your family with you: your spouse and children up to 18. Suppose the nomad has elderly parents or children over 18 studying at a university and depends on it financially. In that case, they can also be brought along.

When can I apply for Digital Nomad Visa?

On December 1, 2022, the Spanish Congress Congreso approved a draft law on startups, formally called Ley de fomento del ecosistema de las Empresas emergentes. After being signed by the King of Spain and published in Boletín Oficial del Estado, it will come into force from January 1, 2023.

Although the law is already in force, there are no rules and requirements for documentation and financial guarantee requirements for January 2023. Income is expected to be pegged to the industry minimum wage and €2,200-2,600 per month before tax. Whether and how much financial guarantees will need to be shown on the account has not yet been regulated.

The Spanish government must create and approve them by instructions by March 31, 2023. These instructions must contain specific requirements adapted to visa and residence permit applicants and thresholds of monetary amounts used to assess economic resources.

You should, therefore, expect digital nomads' visas to be issued once detailed instructions have been drawn up. We aim for spring 2023 and await official clarifications, which we will inform you about immediately.

Advantages of the Spanish Digital Nomad Permit

  1. You can legally stay in Spain for more than 90 days. This is relevant to UK nationals after leaving the European Union

  2. You can get a residence permit for up to 3 years, renewable immediately. You can apply in both the UK and Spain

  3. They can work remotely for companies out of Spain.

  4. You could get a special tax regime to save on taxes.

  5. You can bring your family (spouse, children up to 18, financially dependent parents).

  6. You can reside in a different place for the duration of the visa. You can move freely around Spain.

Challenges of the Spanish Digital Nomad Permit

  1. You have to prepare all the necessary docs for the permit

  2. You Must plan your location in advance for an extended period

  3. Income from work for a Spanish company must not exceed 20% of your total earnings

  4. You must keep track of the terms of your stay in Spain and notify your country's tax authorities in time to avoid double taxation.

  5. If you are moving with your family, the financial requirements for monthly income will be higher.

Do citizens of the United Kingdom and the United States of America need a digital nomad visa?

girl showing British passport

Citizens of an EU-EEA country or Switzerland do not need a visa to reside in Spain. However, if they stay in Spain for more than 3 months, they must officially register their residence.

To do this, the EU citizen must visit the local Office for Foreigners Oficina de Extranjería or a police station and obtain a certificate of residence and a "foreigner's identity card number" (NIE).

For UK citizens, after Brexit, things will be much more complicated. They will have to apply for a digital nomad visa on general grounds, as the country has left the European Union and Schengen area. It will be possible to apply for a visa in the UK and Spain. The difference will be in terms of stay in the country: applying for a visa in the UK, you will receive a permit for 1 year with the possibility of renewal. If you apply for residence in Spain, you will obtain a residence permit for up to 3 years with the possibility of renewal.

US nationals can also stay in Spain without a visa for 90 days. For more extended stays, they need to obtain a permit on the same basis as UK nationals.

Why Mallorca is an Excellent Place to Work Remotely in Spain

Jumping happy people

We won't tell you about the climate and beauty of the island. You already know that. For those looking for a home office to work remotely in Mallorca, it is worth weighing the pros and cons. Compare the cost of living in Mallorca with the price in the UK and calculate your fixed expenses. Here are some other reasons to move to Majorca.

1. Nice Logistic

Mallorca can sometimes be more accessible to reach than cities on the Spanish mainland. Many regular and charter flights. Excellent public transport links and an extensive network of highways allow you to get where you want to go within minutes.

Compared to the UK, a car in Mallorca costs less to maintain. Gasoline and diesel costs are lower, and insurance is cheaper.

Is it cheaper to live in Mallorca, Spain, or UK — prices comparison

2. English-speaking community

Mallorca has a large expatriate community, which can be a big plus when you move in. Mallorca has a large English-speaking community that can help with most of the everyday issues that will inevitably arise during a move and networking. Even before you arrive, you can find answers to many questions in the Mallorca Relocation Forums.

3. English-speaking environment

You can live quite comfortably in Mallorca without knowing Spanish fluently. Many accommodation providers have English-speaking staff. You can rent a place, rent a car and send your children to school in Mallorca. And you can learn Spanish at your own pace.

How Yes! Marlloca Property can help digital nomads

Live and work in a place where you'll be happy! And if you need fast internet, great views, and an affordable home office, the real estate agents at Yes! Mallorca Property can find you a flat, house, apartment, or villa in Mallorca that suits your requirements. Yes! Mallorca Property has estate agents who speak English and understand the preferences of UK buyers. Contact us now!

Home office in Mallorca




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