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Spain Government Finally Approves the Digital Nomad Visa and Publishes Startup Law

On December 22, 2022, the Spanish government approved the Startup Law aimed at boosting the country’s entrepreneurial ecosystem, and as of 2023, they began issuing Digital Nomad Visas. This new law has revolutionized Spanish legislation, particularly in relation to entrepreneurship and the startup world.

The main goals of the law are:

• To foster the creation of new, high-growth tech companies.
• To attract foreign investments and talents.
• To turn Spain into a hub for international entrepreneurship.

To achieve these objectives, the government is offering various tax incentives to startups and foreign workers, alongside a new visa for digital nomads and remote workers moving to Spain.

If you work remotely for an international company or as a freelancer with a verified income source, this new visa is the ideal option for you! You’ll be able to continue working remotely while enjoying Spain's unique lifestyle, full of sunshine, the sea, beautiful landscapes, and delicious local cuisine!

Benefits for Foreign Entrepreneurs

The most obvious benefit is that for those who meet the requirements of the new law, obtaining a residence permit in Spain will be much simpler and faster.

There are two main scenarios:

• Apply for the residence permit as a digital nomad directly from Spain within the first 90 days of your tourist visa.
• Start the process in advance by applying at the Spanish consulate in your home country.

In the first case, you will receive a 3-year residence card, which can be renewed every 2 years. After 5 years, you can apply for permanent residency, and after 10 years, Spanish citizenship, all directly from Spain.

If you start the process from your home country, you will be issued a one-year visa, which can later be converted into a 3-year residence card once in Spain.

One of the main features of this visa is that it’s officially approved under the Entrepreneurs Law (Law 14/2013).

This means:

• Accelerated application processing in just 20 business days (compared to the 3 months required under the general process).
• You can include your family members in the application, so they can receive the same residence permit as you.
• Time spent in Spain with this residence permit counts toward permanent residency and the eligibility for Spanish citizenship.
• You can also work for a Spanish company or client, provided that the income you receive from that company does not exceed 20% of your total income.

Tax Benefits

In addition to the above, applicants for the digital nomad visa can benefit from a favorable tax regime offering greater flexibility in paying non-resident income taxes (the taxes foreigners must pay when their economic interests are located outside Spain).

This means a reduction in taxes for remote workers: for incomes up to €600,000, the tax rate is a flat 24%, instead of the progressive rate that can reach up to 48%.

Moreover, for other taxes, digital nomads will be treated as non-residents for tax purposes.

Requirements

To qualify for the digital nomad visa, applicants must prove they are international remote workers. This includes demonstrating a long-term employment relationship with an international company (at least 1-year contract). The company must also confirm it allows remote work for the applicant.

The company or companies the digital nomad works with must have been operating for at least 1 year.

Applicants must show they have a sufficient academic background (university or business school degree) and at least 3 years of professional experience in the field.

Additionally, applicants must prove they have sufficient financial resources, amounting to 200% of Spain’s Minimum Interprofessional Salary (SMI) — €25,000, which can be verified with a bank account (even from a foreign bank) or a payslip.

What Are the Advantages of Living in Spain for Digital Nomads?

The advantages are clear: wonderful climate, friendly and open people, a multinational community, healthy cuisine, great wine, lower cost of living compared to other European countries, better quality of life, accessible healthcare, and 5G mobile internet coverage.

Elena Hills Agency offers professional consultations and the necessary contacts to help you obtain your Digital Nomad Visa. We can also assist you in finding the perfect property for your needs!

Call us, we’ll be happy to help!

Office phone: +34 966 888 996
Email: info@elenahills.com