Spain’s Digital Nomad Visa

Spain has been testing a “digital nomad visa” for about 12 months. It would allow remote workers to live and work in the country for up to five years.

The bill has been passed in Parliament and now needs final sign off by the Senate

Official launch is expected in January 2023, according to local media reports. Here is what we know so far, and how it compares to a similar scheme in Portugal

Digital nomads would pay a reduced income tax of 15%

Under the Act, visa recipients who make less than €600,000 a year would qualify for a reduced non-resident income tax of 15% for up to four years. Typically, non-residents must pay a personal income tax of 24%.

The visa and its favourable tax structure are only open to remote workers who receive at least 80% of their income from companies located outside of Spain. Recipients can renew the one-year visa every year for up to five years, after which they can apply for permanent residency.

Experts predict an income requirement of around €2,000 a month

Spain has not said what minimum monthly income remote workers must make in order to qualify for the visa. However, some experts have predicted the threshold will be around €2,000 (approximately $2,069) a month, according to local media reports. This is about twice the National Average of €1,050.

That’s slightly less than Portugal’s digital nomad visa, which requires remote workers to make at least four times its minimum wage to apply. Portugal is scheduled to raise its monthly minimum wage to €760 in January, which would bring the visa’s income requirement to €3,040 a month.

Portugal and Spain are competing ‘in a good way’ over talent

With its favourable climate and proximity to major European hubs, it’s no wonder the Iberian peninsula is becoming a digital nomad hotspot.

Before Portugal launched its digital nomad visa at the end of October, remote workers flocked to the country through its D7 visa, also known as a passive income visa. Now, Spain wants in on the action.

Unlike similar immigration schemes outside of Europe, both of the countries’ digital nomad visas would allow recipients to travel visa-free throughout the Schengen Area, a region containing 26 European Union member countries where travellers can move freely without dealing with border control.

What do we think?

In It’s a great idea in theory and should boost the talent pool in the country and with it the economy as well

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