We have really good news! The new law for startups in Spain has been finally published, and with it, important changes within the immigration law.
With this law, aimed to promote and develop entrepreneurship in the country, a new visa will be created for digital nomads and remote workers who are in Spain.
So if you would like to learn everything you need to know about the new visa for digital nomads and its requirements, keep reading!
Content
About the new Startup Law
The new digital nomad visa and its startup law has been finally published.
On the 22nd of de the last few weeks, 22nd of December, the Spanish Government officially published this law which has the aim of revolutionizing Spanish legislation related to entrepreneurship and the startup world.
More specifically, this new startup law aims to:
- Boost the entrepreneurship ecosystem in Spain, facilitating and enhancing the creation of new fast-growing technology companies.
- Attract foreign investment and talent to the country
- Convert the Spanish territory into a real hub of reference for international entrepreneurship
To achieve these objectives, the government proposes to offer a large number of tax incentives to startups and foreign workers, to offer investment facilities and to regulate the sector in a more beneficial way for its development.
And, to attract this international talent: to create a new visa for digital nomads and remote workers relocated in Spain.
Who can benefit from the new visa for digital nomads?
Until now, many foreigners had a common problem.
Although it is true that some did not intend to develop any type of economic activity in Spain, in many occasions they wanted to continue working for a foreign company or offer their services to international clients while enjoying the Spanish lifestyle.
The non-lucrative or non-profit residency was the most suitable option in these cases, but it had the disadvantage of not allowing them to carry out any type of economic activity.
But all these foreigners will now have it very easy, because with the new visa under the startup law they will find the perfect path to regularize their situation and work remotely from this country.
Thus, we find three different profiles of foreigners who could benefit from the new residence permit:
- Foreigners who work remotely from Spain for a company outside Spanish territory.
- Those known as digital nomads, people who in many cases have different sources of online income and who travel from one country to another (including freelancers with clients all over the world)
- In addition, it is also planned to include a visa for people who work in a foreign company located in Spain, including the audiovisual sector.
Would you like to start your remote work visa application today? Get in touch with our lawyers and start now:
Benefits for foreign entrepreneurs
We can find two main benefits offered by this new startup act:
New residence permit
The first and perhaps the most important benefit is the creation of a new type of residence permit designed specifically for the cases seen in the previous section.
This means that if the foreigner meets the requirements, obtaining residency in Spain will be much easier than it has been until now.
There are two different options or scenarios:
- Apply for residence as a digital nomad directly from Spain, during the first 90 days on a tourist visa
- Start the application at the Spanish consulate located in the country of origin.
In the first option, you will get a residence card for 3 years (unless requested for a shorter period of work), which can be renewed every 2 years (being able to apply for permanent residency at 5 years and at 10 years citizenship).
In the case of initiating the process from your country of origin, a 1-year visa would be obtained first, which could be then modified later to the 3-year residence card.
Main advantages of this residency
One of the main features of this visa is that it is contained within the Entrepreneurs Law or Law 14/2013.
We have already seen one of the great advantages of this (the fact that you can start the application directly from Spain as a tourist), but there are more:
- Firstly, if you apply for this permit you will enjoy a fast-track application in just 20 working days (vs the 3 months that permits under the general regime experience)
- The applicable administrative silence is positive, so if you do not receive notification after these 20 days your application will be considered approved
- You will be able to include your family members in the application, and they will be able to get the residence as well
- The time with this residency counts for permanent residency and for Spanish citizenship
- Once you get this permit, you will be able to travel and move freely throughout the European Union
- It also allows you to work for a Spanish company or client as long as the income you obtain from that company does not surpass more than 20% of your total income
Tax benefits
On the other hand, digital nomads applying for this visa under the new startup law will also have great tax benefits.
DNV applicants, as long as they work for a company and are not freelancers, can access a completely favorable tax regime; offering greater flexibility to pay and access the non-resident income tax (the type of taxes they must pay since their economic center of interest is not in Spain).
This means a reduction in the taxes that these remote workers would pay; since up to 600.000€ they would pay 24% of their income derived from work instead of paying a progressive rate that can reach up to 48% (something very similar to the Beckham Law).
On the other hand, the conditions to access to this reduced rate tax (the non-resident income tax) are lowered, moving from 10 to 5 years the required period of non-residence for tax purposes in the country.
Furthermore, this special tax regime can be applied for up to 6 months after obtaining the residence permit as a digital nomad; and it can be enjoyed for a total of 5 years (after that, it would be transferred to the general regime).
In addition to all this, for the remaining taxes, they will be considered as non-residents for tax purposes.
This means that they will not have to pay wealth tax or complete the 720 informative model; something that undoubtedly streamlines the foreigner’s life in the country.
You can access a complete guide on digital nomad visa taxes here.
Requirements to apply for the new visa for remote workers in Spain
The list of requirements is quite straightforward, but it will be essential for the application to fully understand it in order to assess if she can actually apply for this visa:
- First of all, to prove that you are an international remote worker who wants to settle in Spain
- On the other hand, it will also be crucial to prove that of the total income, the part coming from Spain does not represent more than 20%
- Demonstrate that there is a continuous employment relationship of at least one three months the company for which the applicant is working remotely. This company must also certify that online working for the applicant is allowed
- This company or companies with which the digital nomad has a relationship must have been operating in the market for at least 1 year
- 1 year contract with that company
- The academic and professional profile of the applicant must be sufficient. And here there are 2 different options. First, to have graduated from a prestigious university or business school; or, second, demonstrate previous working experience of at least 3 years.
- Demonstrate possession of sufficient economic means. The exact amount is 200% of the SMI (€25,000), which can be demonstrated via bank account (it can be a foreign bank account) or salary.
In addition, we also find the general requirements that are also to any other residency:
- Submit your criminal record certificate with a minimum validity of 90 days
- Include a declaration of no criminal record for the last 5 years
- Not to be prohibited from entering Spain
- Hire private health insurance
- Filling out the application form, which you can download here
- Pay the corresponding fee (790 038)
When will the startup law be published?
The residency for remote workers and digital nomads is ALREADY LIVE, so you can start your application.
If you need legal advice in order to fully understand the requirements you must meet and how does the process work, we are here to help.
Our immigration lawyers will guide you step by step, and manage the complete application to make sure you enjoy an effortless process.
Fill out the form below and get started today:
