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WORKING IN SPAIN

REVEALED: Everything you need to know about applying for Spain’s digital nomad visa

It’s been a long wait and there’s been plenty of hype, but Spain’s much-anticipated digital nomad visa is finally available. Here’s everything you need to know, from who is eligible to how to apply.

Published: 27 January 2023 16:18 CET
Updated: 4 February 2023 08:41 CET
REVEALED: Everything you need to know about applying for Spain’s digital nomad visa
How to apply for Spain's digital nomad visa. Photo: Bild av Helena Lopes / Pexels

Spain has been a favourite digital nomad destination for years thanks to its great weather, incredible cities, affordability and good internet speeds, but up until now, many nomads have only been able to stay for a maximum of three months on a tourist visa. Not only did this mean that they couldn’t stay very long, but also technically, they weren’t supposed to working on a tourist visa either.

As the number of remote jobs and digital nomads continues to rise, particularly since many people started working from home during the pandemic, more and more countries have been introducing digital nomad visas.

Spain aims to attract remote workers, digital nomads and new startups through its so-called Startups Law, which was finally approved by the Spanish government in November 2022, after a long 16 months, but didn’t come into force until this year.

One of the most anticipated and talked-about parts of this law is the digital nomad visa which will allow non-EU freelancers and remote workers entry and residency rights in Spain, as well certain tax benefits. The visa is being referred to in Spain as the visado para teletrabajadores de carácter internacional or visa for remote workers. 

Who can apply?

You can apply if you’re a freelancer or remote worker from a non-EU country, as long as no more than 20 percent of your income comes from a Spanish company.

  • You can either be self-employed and work for various clients or you can be employed by a particular company that has given you permission to work abroad remotely.
  • You must have had a professional relationship with your clients or worked for your company for more than 3 months before your application.
  • The company you work for must have been in operation for at least one year. 
  • You must have at least 3 years’ experience working in your field or must prove that you have the specific qualifications to do so, such as a degree or professional certificate from a recognised school or course.
  • You cannot have lived in Spain during any of the 5 years previous to your application.
  • You must not be living illegally in Spain at the time of your application.
  • You must not have a criminal record and must be able to prove this.

What do I need in order to apply?

Firstly, you must prove that you have sufficient finances to support your move to Spain. This is equal to 200 percent of the SMI or Minimum Interprofessional Salary. On January 31st 2023, the Spanish government announced they would raise the minimum wage to a gross payment of €1,260 across 12 months. 

This means that you must be able to show that you will have an income of at least €2,520 per month or €30,240 per year. You can prove this amount either by showing your job contracts, invoices or bank statements.

You must also make sure that you have either private health insurance, simply getting travel insurance with health coverage is not enough.

The Spanish government also mentions the option of getting public health insurance instead, but it is not yet clear whether this means that you will have to contribute to the social security system or be eligible for the convenio especial – the public pay-in scheme.

READ ALSO: Ten of the best cities for digital nomads to move to in Spain

How do I apply?

There are two different ways to apply, you can either come to Spain on a tourist visa and apply during the first 3 months you’re here or you can apply directly from your home country through a consulate or embassy. Different places will have their own application forms.

You can find the general application form you need to apply through the UGE-CE (La Unidad de Grandes Empresas y Colectivos Estratégicos) here.

As well as the form, there are several documents that you will need to present. These include:

  • A photocopy of your passport
  • Proof of having paid the administrative fee on the application form (modelo. 790 038)
  • Professional accreditation or proof of professional relationship of at least 3 months prior to the date of application.
  • Proof that the company you work for has existed for more than one year.
  • A letter from the foreign company you work for, authorising you to work from Spain and detailing your role, salary, terms and other conditions.
  • A copy of your degree or professional certificate of the job you will be carrying out or evidence of professional experience.
  • Poof of a clear criminal record from the country you have lived in for the past 2 years, plus a sworn statement saying that you don’t have a criminal record from anywhere within the last 5 years.
  • Proof of your social security coverage from your country of origin if they have an agreement with Spain. If not, your employer with have to register and your pay social security contributions in Spain. (If you’re self-employed you will pay your own social security). 
  • Public or private health insurance.
  • Proof of income or funds

READ ALSO: What the experts think about Spain’s new law for startups and digital nomads

How long will it take to be approved?

So far, reports from various law firms around the country are saying that the process will take between 20 days and 3 months, but as this is a new visa it hasn’t yet been officially confirmed. 

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AMERICANS IN SPAIN

EXCLUSIVE: What the new Spain-US social security deal means for Americans

The Local speaks to the Spanish government and tax experts to understand what the new social security and pensions agreement between the United States and Spain means for American workers, digital nomads and pensioners in Spain.

Published: 15 May 2024 11:10 CEST
Updated: 19 May 2024 08:20 CEST
EXCLUSIVE: What the new Spain-US social security deal means for Americans

In early April, the United States and Spain announced a new social security and pension agreement.

The first update to the bilateral agreement between the two countries since 1986 was announced by US Ambassador to Spain, Julissa Reynoso, and Spain’s Minister of Inclusion, Social Security, and Migration, Elma Saiz.

The official agreement is unpublished so The Local spoke with a representative from Spain’s Ministry of Inclusion, Social Security, and Migration as well as international tax experts to understand the agreement in more detail.

Key aspects of the agreement

The Ministry told The Local Spain that the agreement is a step towards, bolstering mobility between Spain and the United States by improving pension calculations and social security protections.

The agreement has to do with the accumulation of benefits and affects working Americans living in Spain. There are two main components; the first affects which system people pay into (Spanish or American) and the second maximises the amount people can collect from social security.
 
Regarding paying into social security, the new agreement extends the “posting period” from three years to five years, with the possibility of extending it to seven years.

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This is meaningful for US employees who are working in Spain and means that they can now pay into the US social security system, rather than the Spanish social security system for longer.

Whereas the employee contributions in Spain and the United States are similar, 6.4 percent in Spain and 6.2 percent in the United States, the rate that employers pay differs greatly. In the United States the employer pays 6.2 percent into social security, whereas in Spain they pay 31 percent.
 
Why does this matter? “Previously when Americans moved to Spain, US employers were cutting the amount that they paid in salary because the cost of employment went up so much”, Louis Williams, Co-Founder and CEO of Entre Trámites, told The Local Spain.

It’s also made employers hesitant to grant digital nomads an Employer of Record (EOR) which would allow American workers to be on a Spanish contract.

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In terms of collecting benefits, the representative from Spain’s Ministry of Inclusion, Social Security, and Migration says, “In the calculation of the Spanish pension there have been technical modifications that will benefit especially those people who developed their last working life in the United States, without this harming those who have worked in Spain immediately before requesting the benefit.”

In other words, under the new agreement, after calculating a person’s benefits under each country’s system, the recipient will be awarded the most beneficial of those two calculations.

Impacts for self-employed workers and digital nomads

According to the Ministry, “The agreement allows self-employed workers to temporarily move to the other State while maintaining their legislation, a possibility that was previously restricted only to employed workers.”
 
This has big implications for people who avoid moving to Spain because of the complicated social security contributions scheme, as they’ll now be able to continue paying US social security taxes (rather than Spanish) for up to seven years.
 
“The interesting thing is if this is extended to digital nomads because it would make the digital nomad visa more attractive,” says Williams.

“Why? Because if you’re posted by an employer (who can now avoid high Spanish social security taxes) you’re eligible for Beckham’s Law.” The law, which does not extend to autonomous works, can cap tax liabilities at 24 percent.
 
Being posted could make life much simpler, according to Elliott Locke, ACSI, co-founder of abroaden, a financial wellbeing and education start-up for people living abroad headquartered in Barcelona.

“The calculus is harder for freelancers given the different legal structures and methods for freelancing between the two countries. In many ways, if an American moves here to work remotely, it could be beneficial for them to have their US-based employer hire them on a local contract through an employer-of-record,” Locke told The Local.
 
In short, the new agreement could make it more attractive for U.S. companies to post employees in Spain, making them eligible for Beckham’s law and allowing autonomous workers to pay into the U.S. social security system, making it more beneficial and easier to be a digital nomad in Spain.

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Who benefits from the new agreement?
 
The people who will feel this new agreement the most are employers, digital nomads, retirees who have paid into both systems over the years, and finally, civil servants. “Spain has incorporated as possible beneficiaries of the Agreement those people who have contributed to the civil servant’s regime (passive class regime), who were excluded in the previous Agreement,” says the Ministry.
 
When can we expect the new agreement to come into force?

Don’t hold your breath; this is Spain after all, but we can expect the agreement to come into force within the next two years.

The deal has to pass through Congress before approval, which is likely why it has not yet been published. If things move quickly, people could expect to benefit within a year.

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