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VISAS

INTERVIEW: ‘No lawyer can guarantee you get Spain’s digital nomad visa’

Applying for Spain’s new visa for non-EU remote workers and digital nomads is more troublesome than expected, especially for Americans. Here lawyers reveal the main reasons why a positive resolution isn't always guaranteed.

digital nomad visa problems spain
Spain-based lawyers have come across a number of problems relating to the DNV application. Photo: Alexander Grey/Unsplash

Spain had a real need for a digital nomad visa or DNV, particularly after the pandemic when the government saw that many people around the world were working remotely. They also had to keep up with other European countries that had already launched DNVs such as Estonia, Croatia and Portugal.

Up until now, there was no clear and legal way that remote or freelance workers from outside the EU could come and live in Spain, so the Spanish DNV was warmly welcomed. But since it has launched it seems that not everything is not how it initially seemed and it is not an easy visa to get hold of.

“The Spanish government has not done it as well,” Juan Carlos Lois from letsLaw firm told El Periódico de España.

The problem, he said, is that the government “has mistakenly believed that everything works the same as in Spain and have distinguished between remote workers who work for a company and the self-employed, or freelancers, who have several clients. But the reality is that the most common applicant is someone who owns their own company and is the sole shareholder. They are not an employee or self-employed, but want to come to Spain to continue managing their business”.  

To find out, more about this specific issue, The Local contacted Maryem Essadik, a lawyer at international firm Marfour based in Barcelona.

Essadik explains that the main issue facing these different types of digital nomads when applying for the DNV is the question of social security.

The requirements of the visa state that the applicant must provide a certificate of social security coverage from their country of origin.

“The Spanish authorities have to guarantee that the remote worker has social security coverage in case of accident or disability, and that is why a certificate of social security coverage is required,” explains Essadik.

“Depending on the applicant’s situation, they will register as an autónomo (self-employed) at the Spanish social security office if they’re self-employed or a contractor. In the case they are employees, they will need proof of social security coverage from their country of origin if their country has an agreement with Spain,” she states.

In case the country where they come from does not have a social security agreement with Spain, the company will need to register with the Spanish social security system and obtain a contribution code and start paying it for the employee in Spain and not in their country of origin.

READ ALSO: ‘It seems impossible’ – The problems Spain’s digital nomad visa applicants face

This, however, is an issue because most companies won’t agree to pay extra money just so one of their employees can work in Spain when it’s not necessary.

Spain has social security agreements with several non-EU countries including the US, the UK and Australia so in theory obtaining this social security coverage shouldn’t be a problem, but in reality, it’s proving to be very difficult.

“There are several countries with which Spain, despite having a social security agreement, is not issuing such a certificate and this is making it difficult for employed remote workers to meet all the requirements for their digital nomad visa. This is true for the US, home to the largest number of people interested in moving to Spain,” explains Essadik.

She adds that the US authorities, in addition to taking almost 90 days to process these applications, do not understand the reason for granting these social security certificates, given the existence of a pre-existing social security agreement between both countries for remote workers (for example, for someone transferred from the US office to a Spanish branch as part of a temporary service contract).  

The question of social security coverage is one of the big problems that Spain-bound digital nomads face. Photo: Windows / Unsplash
 

Essadik, who recently went on a training course at the UGE (the competent authority in the processing and resolution of DNVs) said that US authorities contacted Spain to ask for more information on the matter and said: “It is clear that the Spanish authorities are demanding a certificate based on a legal agreement that is not appropriate for this residence permit”.

This is not the case for all countries, however. Some that have agreements with Spain have indeed produced these social security certificates for applicants. Essadik has personally seen remote workers from the UK, Russia and Ecuador who have been granted their DNVs. However, she believes that the DNV process is discriminatory because it’s a lot harder for some people to apply than for others.

Because of this issue, Lois believes that “no lawyer can guarantee that you will be granted the visa. There are many factors that determine the resolution”.

If you’re a freelancer and work for yourself, however, the situation is a lot easier. Essadik explains that if you are self-employed a simple letter can be submitted, confirming that you will register as autónomo once you arrive in Spain and be in charge of paying the social security fees yourself.

Unfortunately, there are many other problems that lawyers have come across regarding Spain’s DNV application.

The first is that there is no exclusive website catered to the application, Lois tells El Periódico de España. “There is none. The platform in New Zealand is wonderful and tells you if you are eligible or not. Today, in Spain it would be reckless for a foreigner to request a permit on their own without a lawyer specialised in immigration issues to help,” he explains. One box filled out incorrectly will mean your application is denied.  

Essadik agrees and recommends that the process be done with a serious law firm with lawyers registered with the census of lawyers of the Spanish Bar. “The process is not limited only to the knowledge of the list of documents and how to submit the application, but the professional who advises you must have knowledge of all foreign laws and administration along with other branches because errors can be common. We also see errors on the part of the public administration. We are seeing more and more because of the pressure that the UGE has to resolve it in 20 days”, she adds. 

Essadik recommends budgeting between €1,500 to €3,000 for the whole process, including legal assistance.

Like many administrative issues in Spain, there is always a catch-22 situation and for the DNV it seems that it’s no different.  

“The administration doesn’t think about helping people. For example, for the nomad visa you must pay a fee of €76. But to pay it you need the NIE. And to get the NIE you need an appointment, which is not available and is sold on the black market,” Lois says.  

“In general, these are things that could be corrected and they are willing, but they could be more generous,” he concludes.

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PROPERTY

Q&A: What to do if you buy a property built illegally in Spain

Buying an illegally built property in Spain is fairly common but can have several consequences down the line. Here's what you need to know, how to make it legal, whether you can sell it, and the benefits of doing so.

Q&A: What to do if you buy a property built illegally in Spain

Unfortunately, over the years, many properties have been built illegally in Spain, not adhering to local rules and regulations. Foreigners who don’t know the legislation can easily fall into the trap of buying one of these properties, only to find out later down the line.

Maybe it’s when they come to sell or perhaps it’s when they want to do works or improvements on the property.

There are several reasons a home could have been built illegally in Spain. Firstly, it could have been built on the wrong type of land. This is it could have been built on suelo rústico, rural land where residential properties are prohibited, also called no urbanizable

READ ALSO:

It could have also been built too near the coast. This is down to the Ley de Costas or Coastal Law, which was brought into force in December 1989 in order to protect the costas from overdevelopment and high rises spoiling the landscape. 

The law defines different areas of the beach and dictates which is public land, owned by the state and which parts can be owned privately and built on.

If you buy or own a house in one of these non-buildable zones, there are many problems you could face down the line, often sooner rather than later. This is because there are several rules you have to abide by concerning works, reforms and extensions. In some cases, they may not be allowed at all and everything must be approved first by the local government by providing a detailed project.

Because of coastal erosion, this issue is getting worse as some shoreside homes that were once built outside of these areas are finding that they’re now illegal.

READ ALSO: 

The house may have also had extensions made to it that were built without a license, meaning that the extra parts are illegal.

Q: How do I know if my home is legal or not?

A: Unfortunately it can be difficult to know if your property is legal or not. You could have bought and signed for it with a notary and it could be inscribed on the Property Registry, but this still doesn’t mean it was built to the correct specification and on the right land.

The only way to truly tell is to find out if your home ever had a Licencia de Primera Ocupación or First Occupation license, also referred to as a Cédula de Habitabilidad or Certificate of Habitability. This means that according to the authorities, it is suitable to live in and has the correct licenses.

READ ALSO: How to get Spain’s certificate of liveability for properties

Q: What happens if my property doesn’t have a habitability certificate?

A: If your property has never had a Certificate of Habitability, you must regularise the legal situation. First you’ll need to start a legalisation file (expediente de legalización) and contact the town hall. Depending on the seriousness of the case (ie. where exactly it was built, if there’s any structural danger, whether the entire property is illegal or just an extension) the cost of making an illegal property legal can be considerable. As such, each case must be studied individually with the help of an expert to determine whether it is even feasible or worth the investment.

The next step is to bring in an architect and check whether the property complies with all the building regulations. If it does, you simply need present the expediente de legalización to your local town hall, who will confirm whether or not the property adheres to building regulations and can be made legal.

If it doesn’t, you’ll need to consider whether it will comply with the regulations after some renovations. If that’s the case, you’ll need to draw up a renovations project document (proyecto de reforma) outlining the proposed changes and how they will adhere to building regulations. It must be presented to the town hall along with your expediente de legalización.

According to law firm Acal, the legalisation process can be broken down into steps as follows:

  • Contact the town hall.
  • Begin with the expediente de legalización when the town hall confirm whether or not the property can be made legal.
  • Pay the corresponding fees and taxes (in this case it will be IBI) depending on your municipality and region.
  • If you need to make renovations, obtain the proyecto de reforma and hire an architect.
  • Obtain a building permit from the town hall.
  • Once completed, register the property in the Land Registry.

READ ALSO: What is Spain’s IBI tax and how do I pay it?

Q: Do I really need to make my property legal?

A: Yes, because it will benefit you in the long run. It doesn’t matter what the previous owner told you when you were originally buying the property, owning a property that isn’t fully legal (or legal at all) can create problems and even lead to fines worth up to 20 percent of the property’s value in extreme cases.

By going through the legalisation process and making the relevant renovations, if necessary, you gain a legal property for all purposes and with all the benefits that entails.

You will not have problems setting up, paying, or cancelling electricity, water or gas utility services. You won’t have to undertake reforms and renovation work unofficially, avoiding the eyes of the authorities. Instead you’ll be able to register your property in the Land Registry, which will make things much easier when you decide to sell it or pass it on.

In terms of selling it, perhaps that is the biggest benefit of legalising your illegal property: by registering it properly, you will be able to benefit from its full value when selling it. When a property is illegal, the appraised value will probably be no more than 40-45 percent of its real value at best.

The renovations needed to get your property in shape to meet the building regulations could be costly, but will they cost you half of the total value of your property? 

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