Welcome to the era of DIGITAL NOMADS! Coastal regions have become an irresistible destination for a new breed of global citizens - the "digital nomads."
8th June 2023
The fifth provision of this law introduces a special visa and authorization for international teleworkers, designed to support entrepreneurs and facilitate internationalisation. Alongside the general requirements outlined in the Entrepreneurs Law, the Start-up Law sets specific criteria for the stay and residence of international teleworkers. This includes demonstrating that the company they work for has been engaged in genuine and continuous work for at least one year, proving the feasibility of remote work, and establishing an employment relationship with the company for a minimum of three months prior to the application, with the company's permission for remote work.
Under this law, teleworkers can obtain a visa to enter and reside in Spain for up to one year. During this period, they have the option to apply for a residence permit, valid for a maximum of three years, with the possibility of subsequent renewal for two years.
The law provides two pathways for acquiring residence: One option allows individuals to directly apply for teleworking residence in Spain with a tourist visa, granting them a three-year residence permit. The alternative is to obtain a one-year visa from their country of origin, enter Spain, and subsequently apply for a three-year residence permit. Opting for the latter option offers a more organised approach to the teleworker and their family's new life in Spain.
The application process is efficient, with a quick resolution time of 20 days. If there is no response within this period, the application is considered approved under administrative silence.
To qualify for this residence permit, certain requirements must be met. For employees working remotely from Spain, their company must be located outside Spain, and income from Spain or Spanish companies should not exceed 20% of the total. For self-employed individuals, they must demonstrate at least three months of employment or professional relationship prior to the application. Sufficient experience and training can be proven through work experience, a degree or postgraduate degree from a reputable university or business school, or relevant professional training.
In addition to these specific requirements, general prerequisites must also be fulfilled, including having no criminal record or entry prohibition to Spain, possessing private medical insurance with comprehensive coverage throughout Spain, providing proof of financial means by demonstrating possession of at least 25,000 euros for the main applicant and a slightly lower amount for each additional family member, and completing the application form and paying the visa fee.
One notable advantage of this residence permit is the preferential tax regime it offers. Holders of this permit will be subject to income tax in Spain as non-residents at a rate of 24% for employment income up to 600,000 euros, instead of the progressive Spanish rate of 47%, provided that they haven't resided in Spain in the last five years. To benefit from this favourable tax treatment, a non-resident tax status must be applied for with the Spanish Tax Authorities within six months of obtaining residence.
Embrace the digital nomad lifestyle in Spain, where the Start-up Law has opened doors to a vibrant community of remote workers, entrepreneurs, and innovators. Discover the beauty of Marbella and its coastal allure while enjoying the benefits of an attractive legal framework tailored to support your digital endeavours.
Published by David
