The new digital nomad visa comes with great advantages, and taxes are where they shine the most. Remote workers who hold this new permit will be able to enjoy a special tax regime with plenty of tax deductions, provided they meet certain requirements.
In this article, we will explore everything you need to know about the digital nomad visa tax and how those online workers are taxed in the country. We will see the exact tax rates they must face, and also answer the now so-common question of whether they must pay taxes in Spain and also in their country of origin or not.
Key takeaways
- Tax residence: you become a tax resident if you spend over 183 days in Spain within a calendar year, or if your economic or professional centre of interest is here, even with fewer days.
- Beckham Law: with a digital nomad visa you can apply for the Beckham Law and be taxed as a non-resident, but only if you work for a company as an employee, not as a freelancer.
- Residency condition: you cannot have been a resident of Spain during the previous 5 years; before the startup law came into force that period was 10 years.
- Tax rates: under the Beckham Law you pay a flat 24% on income obtained in Spain up to €600,000, and 47% on the excess, not on worldwide income.
- Freelancers: self-employed nomads cannot use the Beckham Law, except ENISA-approved entrepreneurs, highly qualified professionals serving a startup, or administrators of an entity; most freelancers pay under the general regime.
- Double taxation: whether you pay tax twice depends on your home country's laws and whether Spain has a double taxation treaty with it; treaties avoid it through the exemption or tax credit method.
If you spend over 183 days per year in Spain (within the calendar year), you will be regarded as a tax resident.
Also, if you spend less than those 6 months but your economic or professional center of interest is in Spanish territory, then you would also be regarded as a tax resident.
Currently, the law has not set a requirement for days residing in Spain to be able to renew the visa for digital nomads; It is enough to meet the initial requirements again.
This, of course, has important implications, but as we will see, this new visa comes with great advantages in this area.
As a tax resident, you are liable to pay taxes in Spain as any other national would.
When it comes to income tax, for example, this means you must pay income tax on the income you obtain worldwide: both in Spain and in any other country.
This latter fact, as a digital nomad who works remotely, is of great importance.
The general rule states that the applicable income tax is a progressive tax rate that depends on your income and that can reach up to 54% (depending on the area, as some regions in Spain do offer lower income tax rates).
Nevertheless, one of the benefits of obtaining a digital nomad residency is that you would just pay a flat fee (which is much lower).
If you want to learn more, keep reading. We are about to analyze these tax benefits in depth and solve the mystery of having to pay twice for your taxes (abroad and in Spain).
Special tax regime for digital nomads
The newly created startup law came with big changes and advantages, and perhaps one of the most important ones is the possibility of applying for a special tax regime as a remote worker.
That is, if you obtain your digital nomad visa (once you obtain your positive resolution), you will be allowed to apply for the Beckham Law, the famous tax regime that allows you to be considered a non-resident for tax purposes.
But this is only true as long as you are working for a company as an employee, as freelancers cannot benefit from this regime.
The Beckham Law is the regulation that allows salaried digital nomads to benefit from this reduced tax regime
You can access a complete guide on the Spanish Beckham Law here.
This means that, after obtaining this regime, and even though you would be considered a resident because you spend over 183 days in the country, for tax purposes you would not.
This helps you avoid paying income tax at a progressive rate and enjoy reduced taxation.
But that is not all. You will also avoid paying wealth tax on properties that you have outside Spain, and you will not need to file the declarative model 720.
But be careful. In order to be able to qualify for this special tax regime, there is a crucial requirement you must meet.
That is, you can’t have been a resident of Spain for the past 5 years. Before the startup law came into force, that period was set to 10 years, but this reduction is another of the advantages that it brought.
What if I work as a freelancer?
Is it possible for a self-employed person to opt for this tax advantage?
Unfortunately, a self-employed digital nomad cannot access the benefits of the Beckham Act, as this tax cut is intended to tax income from work, not income from economic activities.
In other words, no, a digital nomad “self-employed” cannot access the tax reduction except in these cases:
- He is an entrepreneur in Spain and his project has been approved by ENISA
- He is a highly qualified professional who provides his services to a startup, as long as he receives 40% (or higher) of all business, professional and personal work income
- If you are an administrator of an entity. If it is a heritage entity, its participation cannot exceed 25%.
These are the only cases in which you could access the tax reduction for digital nomads as a self-employed person.
In practice, these assumptions are rare among freelance digital nomads with international clients; the majority will pay taxes under the general regime.
How much do digital nomads pay in taxes in Spain
Digital nomad visa holders, as non-residents for tax purposes, will face a fixed tax rate of 24% on just the income they obtain in Spain (not worldwide income) up to 600.000€ (instead of paying up to 50%).
For any income that exceeds that amount, then the (fixed) rate would be 47%.
On the other hand, we also find the tax rate applicable to capital gains.
That includes, for example, selling shares, properties, interests, or stocks.
In those cases, the digital nomad taxes would be:
- 19% up to 6.000€
- 21% from 6.001€ to 50.000€
- 23% from 50.0001€ to 200.000€
- 27% from 200.001€ to 300.000€
- 30% from 300.001€ onwards
Digital nomad Spain tax calculator
If you’re a digital nomad in Spain under the Beckham Law, your income is taxed at a flat 24% rate up to €600,000. Want to know how much you’ll pay?
👉 For example, if your annual income is €50,000, the total tax would be €12,000.
Compare that with the regular Spanish income tax, and you’re saving thousands per year.
To use this tax regime, make sure you:
Haven’t been a Spanish tax resident in the last 5 years
Apply within 6 months of registering with Social Security
Work remotely for a foreign company or run a non-Spanish business
Do I need to pay taxes in several countries?
One of the questions we are getting asked the most has to do with the necessity to pay twice for the same taxes.
The nature of a digital nomad is that of someone who constantly moves from one country to another, working remotely while traveling.
That may generate a situation in which different countries claim that the digital nomad is a resident in all of them (as, according to their taxation rules, they are). So, in theory, this would create the obligation to pay the same tax twice.
Do they need to pay the same tax at origin and then also in Spain?
The answer is, as always, it depends.
And in this case it depends on what the laws of your country of origin are, and on whether Spain has a double treaty convention with the other country or not.
Those treaties clearly specify the rules to determine where exactly is the digital nomad a tax resident (and hence how to untie the situation).
Based on that, the double treaty will help you avoid paying the same tax twice. And that can be done through 2 different methods: the exemption method and the tax credit method.
No matter your case, it is always crucial to have a consultation with a tax lawyer in order to fully understand your situation and see where and how should you file your taxes.
Our team of lawyers is ready to help through an in-depth consultation in which we will analyze your situation, see if you can benefit from a double-taxation agreement, and guide you step by step.
FAQs about taxes for digital nomads in Spain
Do digital nomads pay taxes in Spain?
Yes, digital nomads pay taxes in Spain. As tax residents (after 183 days of residence in the country), they are required to pay taxes on the income from their work and those from their economic activities.
However, thanks to the law known as the Beckham Law, in some cases, they can enjoy a tax reduction that reduces their tax rate to 24% on incomes of up to 600,000€.
How much is the tax for digital nomads in Spain?
With the Beckham Law, salaried digital nomads pay a fixed rate of 24% on income obtained in Spain up to 600,000 €, and 47% on the excess.
Without this regime, they are taxed according to the general personal income tax, which can reach up to 54% depending on the autonomous community.
Throughout the article we have explained to you in which cases you should pay personal income tax.
Does a salaried digital nomad pay the same taxes as a self-employed digital nomad?
No. Digital nomads who are self-employed cannot benefit from the Beckham Law (with very specific exceptions) and pay taxes under the general personal income tax regime, with additional obligations such as registration in the RETA and, in some cases, the VAT declaration.
Do I have to pay taxes in my home country if I am a digital nomad?
It depends on whether Spain has a double taxation agreement with your country of origin and its own tax residence rules. These agreements establish how to avoid paying the same tax twice, normally through the exemption or tax credit method.
What is the Beckham Law and who can benefit from it as a digital nomad?
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