The end of 2022 produced some interesting new law for Spain targetted at encouraging foreigners to settle in Spain and bring with them entrepreneurial expertise and energy.
One of the initiatives has been dubbed the ‘Nomad Visa’, which enables non EU/EEA nationals to move to Spain and work from their new home in the sun, as long as they are able to demonstrate that they are able to work online making use of the usual technology to do so.
The Nomad scheme personal tax incentives are explained here in our analysis of the new ‘Beckham scheme’
Brexit has made it almost impossible for Brits to work in Spain and in the last few years significant demand has built up especially for Brits who want to move to Spain and enjoy the home working patterns that have became normal since Covid, and which employers and customers alike have come to accept .
You can’t blame them – Who would want to look out of the window on a miserable cold grey day when they could be in sunny Spain working on their laptops in a beach chiringuito, sipping an ice cold caña and being distracted by beach eye-candy!
Getting back to the point, here are the requirements of the Nomad Visa scheme.
- The applicant must demonstrate that they have no criminal record, have not been caught illegally staying in the EU, have a valid passport with at least one year duration, not have been refused entry from the Schengen zone, have sufficient funds to cover personal necessities, have access to healthcare, whether public or private operator operating in Spain. Sufficient funds is defined as 30.240€ p.a. (2 x Spanish minimum wage) for the applicant plus 11.340€ (75% minimum wage) for first dependant then 3.780€ (25% minimum wage) for each additional dependant.
- Contract of employment from a non Spanish employer or, if self employed, proof of ongoing regular income from non Spanish customers of at least 80% of earnings, allowing up to 20% income from Spanish customers. In the case of an employment contract the employer will have to register in Spain with the labour, social security and tax authorities, pay monthly social security contributions and file quarterly and annual tax withholding declarations.
- Evidence that the employment or business activity has been ongoing for more than a year before the application.
- Proof that the activity can be carried out remotely. For example, confirmation from the employer or customers that remote working is acceptable.
- Proof that the applicant is a graduate or postgraduate from a prestigious university, has professional training and attended prestigious business schools or alternatively can prove a minimum of three years of professional experience.
- A self-employed professional must be able to prove a commercial relationship with one or more companies not located in Spain for at least the last three months, as well contractual or similar proof of the terms and conditions of the continuing remote activity.
The individual shall apply for the remote working visa in their country of residence and this will have a validity of 12 months and shall be sufficient for the individual to move to Spain and start working. An application must be filed within 60 days of the expiry of the remote working visa whereby the individual makes a formal residency application for a duration of up to three years. Further extensions of residency authorisation will have a duration of two years, always that the original conditions are maintained.
Family members are entitled to accompany the applicant subject to each of them satisfying the basic requirements.
We should emphasise that the Nomad/Remote Working Visa is only one of several options available to foreigners wanting to live and work in Spain.
Tax regime
There is considerable confusion concerning whether the so called very attractive Beckham tax regime applies to nomad visa holders. The confusion derives from the fact that the regulations for both schemes appear in the same legislation and much online commentary tries to explain both matters in the same body of text.
To make it very clear:
- Only employees with a normal contract of employment may elect for the application of the Beckham scheme. See more details here.
- The self employed cannot apply the Beckham scheme under any circumstances.
- Having your own company that ’employs’ you will not usually satisfy the employment requirement.
