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Last Updated on 15th November 2024

Digital nomad visas have soared in availability and popularity in recent years. They offer professionals and freelancers the opportunity to relocate to some of the world’s most desirable destinations, working remotely in areas with excellent digital infrastructures and internet connectivity.

Spain’s Digital Nomad Visa, which launched in January 2023, is one of the options and provides a new way for non-EU nationals to live in Spain in a bid to boost entrepreneurship and encourage foreign investment into the Spanish economy.

Here, we run through the general eligibility criteria, the terms and renewal options, and what to expect if you are interested in applying.

An Introduction to the Spanish Digital Nomad Visa

Post-Brexit, non-EU citizens are only able to visit European Union countries for a maximum of 90 days every six months, which means anybody looking to relocate on a longer-term basis must have a valid visa or permit.

The Spanish Digital Nomad Visa was introduced as part of the Startup Act, and the benefits from the Spanish government’s perspective is that this type of visa category attracts more affluent applicants with stable incomes, who often become tax residents.

Reduced flat-rate taxes apply, with digital nomads paying a 24% income tax rate on earnings up to €600,000, with double taxation agreements in place to ensure individuals don’t become liable for tax on the same incomes in Spain and their home country.

The basics are that workers who can operate remotely while working for an overseas employer or who are professional freelancers or self-employed businesspeople can relocate to Spain and continue their current role or profession, provided they earn at least €2,400 a month.

Applicants can relocate with a spouse, partner, or children, although the minimum income requirement increases the more individuals there are included in the application.

Eligibility Criteria and Conditions

As with any visa or residency permit, there are varied conditions you’ll need to comply with to prove your eligibility, although there are few restrictions, and anybody working remotely who is not an EU or EEA citizen can apply. They need to show that:

  • They are or can be a remote worker, with permission from their employer where relevant.
  • They are financially self-sufficient and meet the minimum income thresholds.
  • They hold appropriate private health insurance coverage.
  • They do not have any criminal convictions.

If successful, digital nomads need to live in Spain for at least six months per year as a minimum stay requirement, but they can travel around Spain and elsewhere in the EU if they choose, with freedoms of travel associated with a temporary Spanish residency permit.

In terms of work, digital nomads must work primarily for non-Spanish companies, although unusually, they can also work for Spanish businesses, provided the proportion of their professional activities on behalf of domestic employers or clients is limited to 20%.

The remaining 80% of their professional income must derive from employment or business originating from outside of Spain.

Although there are no specifically excluded professions, applicants must have some form of professional qualification or accreditation, such as a graduate or postgraduate degree, or they need to showcase that they have professional training with at least three years of experience.

Extending Your Spanish Residency as a Digital Nomad

The visa is initially valid for 12 months, although successful applicants can renew it every year with a maximum extension of up to five years.

This may vary for expats already resident in Spain with a pre-existing temporary residence permit. For example, current expats with another type of short-term visa can apply for the Digital Nomad Visa and use this to extend their stay by between one and five years.

The big contrast between the Digital Nomad Visa and other forms of temporary or tourist visas is that digital nomads have the right to work. Most other permits and visas prohibit holders from working or undertaking business activities for the duration of their stay since they are designed for visitors rather than professionals.

Depending on your circumstances, you could potentially apply for a longer-stay visa after five years. Examples include the non-lucrative visa, although this is primarily aimed at retirees with a passive pension or retirement income, or the residency by investment visa—noting that the latter is under review.

Benefits of Applying to the Spanish Digital Nomad Scheme

Working in Spain as a digital nomad overcomes the travel limitations introduced post-Brexit and means UK nationals have the opportunity to work overseas, with beneficial tax advantages. Digital nomads may also be able to extend or grow their businesses if they are working as self-employed business owners or freelancers.

While the six-month minimum stay requirement applies, there are no such limitations on where you can live, with some of the most popular destinations within the country including:

  • Barcelona, with ample co-working spaces and a thriving digital nomad expat community.
  • Madrid – the capital city, which is a central area for professionals and an excellent place to make contacts or find co-working offices and studios.
  • Valencia, which is a well-known visitor destination, but that also has a developed freelance working infrastructure and lower living costs than the larger cities.
  • Malaga, a high-demand location for digital nomads owing to the presence of several large tech companies.

Remote workers could also choose to live in the Canary Islands, in the tranquil Basque Country setting of San Sebastian, or relocate to Seville in Andalusia. More remote areas and less modern cities tend to have less reliable internet speeds, although living costs are generally low and very affordable compared to those in the UK.

Earning a stable income above the threshold typically means digital nomads enjoy a high standard of living, with income tax efficiencies intended to attract higher earners. However, living in Spain for at least half the year means becoming a resident for tax purposes, which means independent guidance about the implications is essential.

As an indication, general living costs in Spain are over 25% lower than in Britain, rental prices 27.7% more affordable, and groceries cost more than 20% less, making the Digital Nomad Visa an attractive option for professionals looking to travel and seek new opportunities in Spain.

For more information about relocating to Spain, managing your tax exposure or choosing between visa routes, you are welcome to contact Chase Buchanan’s Spanish teams based in Malaga, Javea and Tenerife to schedule a convenient time to talk.

*Information correct as at November 2024