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Spain has always been a highly popular destination for British citizens relocating to Europe with many people owning residential property in mainland Spain and on its famous islands. One of the major impacts arising in the aftermath of Brexit for Spain was the loss of Spanish-based British talent due to the restrictions introduced following the UK’s exit from the EU.
The Spanish secretary of state for digitalisation and artificial intelligence, Carme Artigas, has announced that a very favourable digital nomad visa is expected to be enacted in January 2023. This is aimed at attracting commercial talent from outside the European Economic Area and comes as part of the new Start-up law passed by the Spanish government in the past fortnight.
Spain aspires to become an international technological hub and has already attracted investment from large multinationals. The new Start-up law incorporating the Digital Nomad visa considerably reduces the notoriously voluminous bureaucracy for which Spain previously gained a reputation. Carme Artigas also expressed the view that Spain sees the Digital Nomad visa as a route to actively encourage new talent to start businesses and “make the ecosystem grow and develop”
Andreu Marin Munoz, head of immigration, commented “the Digital Nomad visa will apply to all foreign nationals of any country but it is principally intended for non-EEA nationals.” Andreu further points out “the new Start-up law will make a significant difference to all aspects of setting up a business in Spain by steam-lining the process and extending tax benefits.”
Who can apply?
Foreigners from countries beyond Spain (including the UK) may apply for this type of visa to work remotely if they work for companies based outside Spain. Their work for Spanish companies may not exceed 20% of the total.
The criteria required to make an application
Applicants for the Digital Nomad visa must fulfil the following criteria:
- That the type of work can be carried out remotely and that remote working is permitted by the company
- The company must have operated continuously for a period of at least one year
- You must be able to demonstrate that your employer is not based in Spain
- You must prove that you can meet the minimum income requirement
- You must hold private health insurance with an organisation authorised to operate in Spain
- You have proof that you have no criminal record in the previous two years and no spent criminal record in the past five years.
- You must demonstrate that you have accommodation
- If you are freelance you must prove that you work for a minimum of one organisation that is outside Spain
- The Digital Nomad visa will allow an applicant to stay in Spain initially for one year, the visa can be renewed for up to five years,
They also must prove the following:
- That they have worked remotely for at least a year.
- If they are under contract to a company, that they have had a professional relationship with the company for at least three months
- If they are freelance, that they work with at least one company outside Spain and provide the terms and conditions of the remote work.
How can you make an application?
Your application can be made from Spain or at the Spanish consulate in your home country.
If you apply for a visa in your home country at a consulate, a decision on granting the visa will take up to ten days.
An application for a residence permit made from Spain must be submitted online to the Unidad de Grandes Empresas y Colectivos Estratégicos (Unit of Large Corporations and Strategic Collectives), will take 20 days to decide on whether to grant the residence permit.
Those individuals already residing legally in Spain when making an application for a digital nomad visa can request a three-year permit which can be extended for two more years if the applicant continues to fulfil the conditions for the digital nomad visa. After this period, this residency permit could be converted to a long-term permit.
A significant benefit of the Digital Nomad visa is that it will enable successful applicants to take advantage of the “Beckham law” 2005, a tax law benefit called after David Beckham as it was enacted during his time playing in Spain for Real Madrid. The Beckham rate of tax is extended to highly paid foreign nationals. During the first four years that digital nomads live in Spain, they will be taxed at 15 per cent, as opposed to the standard 25 per cent base rate in Spain.
Other advantages introduced by the Start-up Law is the fact that it cuts through the bureaucracy, which previously meant starting a new business took weeks to establish. The new law means that it will now take hours and can be done online.
Also family members, spouse and dependent children or parents that are financially dependent on the applicant can also apply to join an applicant with the appropriate evidence of financial dependence.
Giambrone & Partners immigration lawyers have years of experience in assisting individuals with applications for a range of visas in Spain, including complex applications. Our lawyers have, on many occasions, been able to successfully support applicants in cases where their applications have been more complicated requiring exceptional expertise to manage.
Andre Marin Munoz has extensive experience in immigration law in Spain. His comprehensive knowledge has enabled him to resolve complex issues relating to a wide range of types of visa applications. Andre’s expertise has enabled him to successfully assist clients to obtain visas and legal status within Spain.
7-December-2022