Spain wants to attract digital nomads, entrepreneurs and foreign investors with tax advantages, a special visa and fewer legal formalities to work remotely. Although it is expected to come into force in summer 2022, the new visa for digital nomads in Spain is already one of the most talked-about topics in business circles and entrepreneurial ecosystems. And no wonder. With its implementation, the government is not only facilitating the arrival of non-EU workers in Spain, but is also opening the door to international capital. Here’s a breakdown of how it works.

The first thing you should know is that this new residency model for digital nomads came about with the approval of the Bill to promote the start-up ecosystem, better known as the Startups Act, last December. In it, international teleworking is regulated through three articles included in Chapter V Bis, which modify the so-called Entrepreneurs Law (Law 14/2013 of 27 September).

Who can apply for a digital nomad visa in Spain?

The requirements for a non-EU professional to be considered an international teleworker and therefore eligible for this visa are quite basic:

Work remotely on a full-time basis for a company not located in Spanish territory or, if you are self-employed, carry out a professional activity for a company located in Spain and that this percentage of work does not exceed 20% of the total professional activity.

Be a graduate or postgraduate from a university of recognised prestige, professional training and business schools of recognised prestige or with a minimum professional experience of three years or accredit a minimum professional experience of three years.

The employing company has been in business for more than one year.

You must have been on the staff for at least 3 months.

What advantages does it offer?

Undoubtedly, one of the most interesting aspects of this new legislation is the tax and commercial advantages it offers digital nomads.

Less paperwork and bureaucracy

To live and work in Spain for less than a year, the international teleworker will only have to apply for the new visa for digital nomads. If their idea is to stay in our country for longer, they can directly obtain a residence permit for up to three years, with the possibility of renewal every two years. And best of all, both processes can now be started as soon as you arrive in Spain, with no waiting time.

Special tax regime

In economic and fiscal matters, things are also improving. Holders of the digital nomad visa will enjoy a reduced general income tax rate, from 24% to 15% for the first four years.

Ease of entrepreneurship

Entrepreneurship and the creation of start-ups among foreign workers is also rewarded: a new company can be created telematically, without the need for a Foreigners’ Identity Number (NIE), one euro will be enough to set up the company and, here’s the good news, the maximum deduction base for investment in new or recently created companies has been increased from 60,000 to 100,000 euros per year, as well as the deduction limit, which has been increased to 50%.

“More than 60% of our coworkers are foreign professionals, who do not know how Spanish legislation works and come to us with doubts about how they can open a company in Spain as foreigners or how they can start operating in the Spanish market and internationalise the company they telework for. We are talking about highly qualified professionals who know the potential that our country has as a business centre in Europe and want to invest in it. For this reason, we are sure that these measures will create a pull effect among entrepreneurs and international companies”, says Sara Marí, head of wayCO’s legal department.

Report by Lucía Tarragón

Article copyright  ‘wayCO’ / 24/7 Valencia