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WORKING IN SPAIN

Your questions answered about Spain’s digital nomad visa

Spain's long-awaited digital nomad visa is finally available, but there is still much confusion about it, so we've answered all your burning questions.

Your questions answered about Spain's digital nomad visa
Spain's digital nomad visa. Photo: Photo: Andrea Piacquadio / Pexels

Spain’s Startups Law, which also introduced a new digital nomad visa, was approved at the end of 2022, but didn’t come into force until January 2023 and all the details are only just now being revealed. 

From how much money you need to your tax obligations and if you can bring family, members, here are all your questions answered. 

READ ALSO – REVEALED: Everything you need to know about applying for Spain’s digital nomad visa

What are the financial requirements to apply for the visa?

You must prove that you earn 200 percent of the SMI or Minimum Interprofessional Salary. On January 31st 2023, the Spanish government announced they would increase the minimum wage to €1,260 per month. 

This means that you must be able to prove that you will have an income of at least €2,520 per month or €30,240 per year. You can prove this amount either with job contracts, invoices or bank statements.

Can I bring family members with me on the visa?

Yes, you are permitted to bring partners and children with you to Spain on the digital nomad visa.

In order to add a family member, however, you must prove that you have an extra 75 percent of the SMI or minimum wage. This currently equates to an extra €945. For each additional family member after this, such as children, you will have to prove you have an extra 25 percent of the SMI, which is €315.

READ ALSO: Ten of the best cities for digital nomads to move to in Spain

Do I need private health care?

You must also make sure that you have either private or public health insurance, simply getting travel insurance with health coverage is not enough.

The Spanish government mentions the option of getting public health insurance instead of private cover, but it is not yet clear whether this means that you will have to contribute to the social security system or be eligible for the convenio especial – the public pay-in scheme.

Do I have to have any professional qualifications? 

You must prove that you either have professional qualifications or a degree relating to your job or that you have at least 3 years’ experience working in your field. 

How long is the visa valid for?

The visa will be valid for an initial period of one year, however, it can be renewed for up to five years. After that, if you want to continue living in Spain, you will be able to apply for permanent residency.

Does the visa give me access to travel around the EU?

Yes, once you have your visa and you’re in Spain, you will be able to apply for a residency card. This will allow you to travel throughout the EU during the time that you’re living in Spain.

Keep in mind though, it won’t give you the right to work or live in other EU countries, but you will be able to go for short breaks. 

How long do I have to stay in Spain for the visa to be valid?

Many digital nomads choose to split their time between different countries. If this is your case, and you want to split your time between back home in the US or the UK for example, you must make sure you stay in Spain for a maximum of 6 months per year for your visa to remain valid.

Do I have to pay tax in Spain?

Yes. If you stay longer than 183 days, then you will be considered a tax resident in Spain. This means that any money you earn while working in Spain, even if it comes from clients or companies abroad will be taxable.

However, the digital nomad visa grants you tax benefits, such as being able to pay the Non-Residents Tax Rate (IRNR) rather than the regular progressive income tax (IRPF) that Spain’s resident workers pay.

Non-Resident Tax was previously only applicable to non-residents such as second-home owners, but an exception has been made for digital nomad visa holders even if they spend more than 183 days a year in Spain and are therefore technically fiscal residents.

IRNR is generally 24 percent in Spain and digital nomads will be able to pay this instead of the more progressive rates, as long as they earn below €600,000 a year.

This favourable tax rate will be available for four years, if you choose to renew your visa. 

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WORKING IN SPAIN

Popularity of working from home falls in Spain

A recent study has revealed that working from home, or 'teletrabajo' as it's known in Spanish, has been steadily falling since the pandemic and that Spain lags behind other countries in terms of popularity.

Popularity of working from home falls in Spain

A recent study by Spain’s Observatorio Nacional de Tecnología y Sociedad (ONTSI), has revealed that working from home (teletrabajo) is falling in popularity in Spain, and that the country as a whole lags behind other European countries.

The report, which you can read here, concludes that teletrabajo steadily reduced in 2022, albeit with a slight rebound in the last quarter. Taking into account 2021 and 2022, it has fallen from 13.6 percent of the workforce (around 2,742,000 people) to 12.5 percent (2,563,000 people) and has done so for both men and women.

READ ALSO: Working from home: What we know about Spain’s new ‘teletrabajo’ decree

Currently, 12.6 percent of women (1,191,000 workers) work remotely compared to 12.5 percent of men (1,372,000 workers).

In terms of regular remote working, something the study considers to be half of your total working days, the number has fallen from 7.9 percent to 6.4 percent. However occasional remote working, in other words, less than half of your working days, has increased from 5.7 percent to 6.1 percent.

Age

The study also highlighted some interesting demographic differences in the data, and the types of people who are more or less likely to work from home.

Teletrabajo is more widespread in people over 25 years of age in particular, with workers between 35 and 54 years of age being the ones who work remotely the most (13.5 percent).

Around 12 percent of workers over 55 work from home, and 11.9 percent between 25 and 34 years old. Just 6.1 percent of people between the ages of 16 and 24 work remotely.

Region

There’re also some interesting regional discrepancies in the data. Madrid tops the list of remote workers, with 19.1 percent of people working from home on an occasional or regular basis. Next is Catalonia with 14.1 percent, and Valencia with 11.9 percent. 

On the other hand, the regions and cities where remote working is least common are Ceuta (5.6 percent), Extremadura (6.8 percent), Melilla (6.9 percent) and Castilla-La Mancha (8.5 percent).

Overall across Spain, the percentage of people working from home has decreased in 12 of the 19 regions and autonomous cities.

Photo: Ontsi.es / Encuesta de Población Activa (INE).
 

Self-employed

In what is probably unsurprising news, the self-employed are far more likely to work from home than other people in Spain. Autónomos, as they are known in Spain, almost triple the number of salaried workers who work remotely. 26.4 percent of people who are self-employed work from home, while for salaried employees the figure is just 10 percent.

Teletrabajo among salaried employees has plummeted in Spain after reaching 17 percent in the second quarter of 2020 as the pandemic raged and companies tried to find alternative working arrangements.

READ ALSO: Self-employed in Spain: What you should know about being ‘autónomo’

EU comparison

Interestingly, Spain lags far behind other countries when it comes to working from home. According to the latest data published by Eurostat, in 2021 the European average was 24 percent (of workers working remotely), significantly higher than in Spain and higher even than Madrid, the region where teletrabajo is most popular.

The Netherlands has the highest proportion of remote workers in Europe with 53.8 percent, followed by Sweden (46.2 percent) and Luxembourg (45.1 percent).

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