Click on each of the topics below to learn more and find useful resources.
WORKING REMOTELY IN SPAIN
with the digital nomad visa (DNV)
Spain introduced the Digital Nomad Visa in January 2023. This visa is for any foreigner planning to live in Spain as a resident, working remotely for a company or an employer (or self-employed) located outside of the Spanish national territory. It's a significant step for Spain, opening its doors to remote workers from around the world.
This article was last updated in February 2024
APPLYING FOR THE SPANISH DIGITAL NOMAD VISA (DNV)
Help At Hand Spain can help guide you every step of the way taking the stress and planning out of your move. Get in touch by completing our enquiry form.
Help At Hand Spain can help with the following:
- Provide a free eligibility assessment for the Digital Nomad Visa
- Apply for the Digital Nomad Visa
- Provide a 60 minute paid tax consultation
- Obtain Private Health Care Quotes
- Register as Self Employed (Autonomo) In Spain
- Obtain NIE Numbers
Why choose Help At Hand Spain?
- Clear and transparent pricing before you commit
- Overcome the language barrier
- Leverage our experience and patience to overcome the bureaucracy
- We will guide you through every step of the process
- You can leverage our knowledge and network of trusted partners
- We understand how daunting things can be, we are here to make it easier
- Share sensitive documents in confidence and securely using a client specific password protected folder
SPANISH DIGITAL NOMAD VISA (DNV) OVERVIEW
You can only apply from within Spain and can be granted a Visa for up to three years, or if applying from a Consulate you will be granted a Visa for one year.
The Visa can be renewed renewed twice for a total of five years. It can be used to start the process of obtaining permanent residency (after five years) and Citizenship in Spain (after 10 years).
Once the Visa is approved, the visa in your passport will give you a period of three months to enter Spain and complete the residency process. Applicants will need to apply for the TIE residency card (Tarjeta de Identidad de Extranjero) within Spain.
The key requirements are:
- Work (Self Employed): As a self employed (sometimes referred to as a sole trader or freelancer) and have contracts with companies that have existed for more than one year, you will need to commit to registering as self employed (Autonomo) in Spain and pay Spanish Social Security contributions. You will need a letter of approval from your clients and must have been working for them for a minimum of three months. You cannot generate more than 20% of your professional activity income from a company located in Spain.
- Work (Employee): As an employee of a company you will need an employment contract and receive a salary, and the company must have existed for more than one year. You will need a letter of approval from your employer and must have been working for them for a minimum of three months. The company need to register your employment with the Spanish authorities and pay Social Security in Spain, this will depend on the terms of the Bilateral Agreement on Social Security in the country of employment. Your employer may however choose an intermediary, the remote worker maintains their direct contractual employment relationship with their company and the intermediary assists with registration/social security etc. If your company has a Spanish entity already, you would not be eligible for the Digital Nomad Visa, your company would need to apply for an Intercompany Transfer Visa.
- Income Requirement: This is based on 200% of the Salario Mínimo Interprofesional (SMI) for the primary applicant and is based on your gross income. For 2024 the SMI requirement is €1,134 (14 payments) or prorated to €1,323 (12 payments), this means the Visa holder requires – 200% of the minimum salary, so €1,323 x 200% = €2,646. For other family members, the first dependent (i.e. your spouse or partner) – 75% of the minimum salary, so €1,323 x 75% = €992, and other dependents (i.e. children) – 25% of the minimum salary each, so €1,323 x 25% = €331 each.
- Professional Experience: You must demonstrate three years of experience and/or provide your university degree as proof of experience in your current field of work.
- Criminal Records Check: A clean background check from each country in which you have lived in the past two years, and a declaration of a clean background for the past five years.
- Health Care: If you are an employee you may be eligible to be covered by Social Security in the country in which you are employed, otherwise the company will need to register your employment in Spain and pay social security. If you are self employed (a sole trader) then you can need to sign a declaration to sign up for Social Security in Spain, and optionally you can take Private Health Insurance for peace of mind.
how do I apply for the spanish digital nomad visa?
We always recommend to clients to plan ahead. Depending on your personal circumstances you may need to start the process before you arrive in Spain. You will require supporting documents from your existing country of residence or other countries which may take time to obtain.
- Applying from a Consulate: It can take between 1-2 months to prepare the application. You will likely need to obtain Foreigner Identity Number (Número de identidad de extranjero/NIE) for each applicant before you can submit an application. Once the application is submitted the Consulate can take between 10-20 days to make a decision. It is recommended to work back from the date you want to arrive in Spain, for example if you want to arrive in July, you may need to start the process in February. It can be more expensive to apply from a Consulate, and you will only be granted a one year Visa which means you will need to renew again within 12 months.
- Applying from within Spain: It can take between 1-2 months to prepare the application. Once the application is submitted a decision can take up to 20 working days. Be aware the period in which you must apply will be reduced if you have travelled to other countries within the Schengen Zone in the previous 180 days. Additionally if you are arriving in Spain from another Schengen country the process starts immediately when you arrive as you may need a declaration of entry.
FREQUENTLY ASKED QUESTION - DNV VISA DURATION
The initial duration of the visa approval may be less than one year (when applying from a consulate) or less than 3 years (when applying in Spain) in some circumstances:
- Company Employment & Social Security: If you are paying social security in your country of employment, and the Bilateral agreement has a time limit then the Visa end date may be shorter. For example if you apply from within Spain with a UK Employment contract with social security paid in the UK, it is likely the Visa may only be granted for a maximum of two years.
- Self Employment & Contract Duration: If there is a fixed expiry date established in the contract the Visa may be approved only until the contract end-date. It may be possible to mitigate this.
FREQUENTLY ASKED QUESTION - COSTS of applying for a dnv
Help At Hand Spain provides a service to guide and support you through the process every step of the way. Get in touch with our enquiry form to share your personal circumstances and we can give you a free no obligation quote.
In addition to our fees, you may need to budget for some or all of these expenses depending on the application or residency you will apply for.
- Visa Application Fees: If you need to apply from a Consulate you will need to pay the consulate fee which may be higher than the fee to apply in Spain depending on your citizenship.
- Sworn Translation: A number of documents will need to be translated. Help At Hand Spain partners with a number of government approved translators and can include this service.
- Health Insurance: Help At Hand Spain has trusted partnerships and can obtain you a free no obligation quote from a variety of private health insurance providers. The cost will depend on your age and any pre-existing conditions. If you are applying as a self-employed worker you can opt to sign a commitment for Social Security.
- Police Checks: A criminal records check is a mandatory requirement.
- Public Notary: Depending on your personal circumstances you may require a legal affidavit to support your application.
- Apostille/Legalisation of Documents: A number of documents will need to be legalised the cost will dependent on the country in which the document was issued.
- Tasas: There will be other smaller government processing fees (€10-€20 Euros per person) that will need to be paid.
FREQUENTLY ASKED QUESTION - DIGITAL NOMAD VISA TAXATION
Below you can find a quick summary below, learn more in our Our Free Guide to Your Money and Finances.
- Will I become a tax resident in Spain? The timing of when will depend on your personal circumstances and it is recommended to seek the professional advice of a Spanish tax advisor. Generally speaking you will become "Tax Resident" if you spend more than 183 days in a calendar year or you have your center of economic interests in Spain. If you are self employed you would become tax resident when you obtain the visa.
- What does it mean to be tax resident in Spain? If you are tax resident in Spain you will be required to complete annual tax returns. Depending on your personal circumstances you may also be subject to Wealth Tax and annually declaring your worldwide assets. It is highly recommended to consult with a tax professional to ensure you understand how taxation works in Spain. We partner with an English/Spanish speaking Tax Specialist who can offer a one hour tax consultation, ask us for further information.
- When do I need to register for Self Employment In Spain? Once your Visa is approved you will need to start the process of registering with the tax authorities and social security, once established you would start invoicing and declaring your self employment income in Spain. Don´t forget you also need to de-register from your country of employment.
- How do I declare taxes as an employee? You will need to check with the tax authorities of your country of employment, you may be able to apply for a non-taxable code so you are not taxed at source, and then you would declare and pay taxes in Spain.
- Am I eligible for Beckhams Law? Employees of companies are eligible to apply for Beckhams Law subject to meeting the requirements. Unfortunately Self-Employed workers are not eligible. Read this guide for further information on Beckhams Law.
registering a foreign company in spain vs. PROFESSIONAL EMPLOYER ORGANISATION (PEO) and the DIGITAL NOMAD VISA
Spain’s employment landscape is highly regulated, so working with a Professional Employer Organisation (PEO) ensures compliance. Statutory notice periods, working hours, and other regulations apply. PEO's handle compliance with local laws, onboarding, payroll, and benefits.
Considering the complexities, some digital nomads have found an alternative solution to make their Spanish dreams come true by using a POE service provider.
A POE is a third-party organisation that acts as the official employer for tax and legal purposes while the remote worker maintains their direct employment relationship with their overseas company.
POE services can help mitigate the legal, tax and administrative burdens associated with the Spanish digital nomad visa, providing a smoother path to obtaining the visa.
For completeness, it is possible for the foreign company to register with Spanish social security directly, and there are companies that help with that process. There are a number of pre-requisites that must be fulfilled.
Typically the company will need to make the decision on how they want to operate with an employee abroad. Help At Hand Spain can provide general guidance to Digital Nomad applicants to help navigate the options and provide referrals to partners so the company can get the right set-up that works for them.
If you are struggling to find a POE service provider, check for Employer of Record (EOR) service providers to see if they can provide the POE service. The difference with an Employer of Record is that your contract of employment moves to Spain, for the purpose of the Digital Nomad Visa, your contract of employment must always remain with the Foreign employer.
SOLE DIRECTOR and OWNER of a LIMITED COMPANY and the DIGITAL NOMAD VISA
It is possible to apply as an employee if you are the sole director, owner and worker in your own Limited Company Director. However there are things you need to consider that make it challenging and create potential risk for the future.
- Contracts of Employment: You would still need a contract of employment signed by your company showing the employment income you are taking from the business.
- Social Security: If you are eligible to continue paying Social Security in your country of origin, depending on the terms of the bilateral agreement there may be a strict limit on how long this arrangement can continue. If there is a limit you would then need to register your employment in Spain and pay Spanish Social Security. For example in the United Kingdom the limit is two years, this could limit the maximum time you spend in Spain.
- Permanent Establishment Risk: In company law in Spain, if the operational control and management of the business is conducted by a person permanently living in Spain, then the business is considered as being permanently established in Spain. If the company was investigated this would mean the company would need to register and comply with company law on tax reporting. If you have a permanent establishment in Spain and needed to move your contract of employment to Spain you would not be eligible for the Digital Nomad Visa. You could pass responsibility to sign contracts for the company to others that are not based in Spain.
- Dividends or not Dividends: In other countries it is perfectly legitimate to take a salary for your role, and then take dividends at a lower tax rate based on the profit of your business. In Spain, Limited company owners that only employee themselves have to declare 100% of their business income, and the dividend tax breaks are not possible in Spain. If you do take the risk of taking dividends you could be risking a tax investigation.
It is possible to apply if you own a company and have client contracts. You will be treated as self-employed for tax purposes.
- In some countries even if you own a Limited Liability Company (like a US LLC), you are already taxed on 100% of your income. In this case you would be eligible if you meet the requirements and prove your client contracts however be aware that you would be considered as self-employed in Spain and would need to pay social security and declare 100% of your income and pay tax accordingly.
It may be possible to apply if you are working as a self-employed (freelance) consultant working for your own company:
- If you can legally establish establish a service/freelance contract with your own company and invoice your company for services you may be eligible for the Digital Nomad Visa. This may not be possible and you would need to talk to your tax authority. You would be considered self-employed in Spain and would need to pay social security and declare 100% of your income and pay tax accordingly. Even if you have a freelancer contract if the link between your own freelancer contract and your employment/ownership of the company is clear, you may be asked to provide additional documents to prove you have real clients, your company has an activity that is separate from the owner, you earn a stable income from client work, and as the owner of the company you are benefiting from the income.
© 2024 Help At Hand Spain, All rights reserved.