Social Security and Digital Nomads in Spain: What You Need to Do Depending on Your Situation

Obtaining authorization to work remotely from Spain does not automatically resolve one of the most important issues in the process: where do you need to pay Social Security contributions?

The answer mainly depends on whether you work as an employee for a foreign company or carry out your activity as a self-employed professional or freelancer. The existence of an international Social Security agreement between Spain and your country of origin may also affect your situation.

This is also where one of the most common mistakes arises: assuming that, because you continue to receive your salary from a foreign company or remain registered with a Social Security system abroad, you do not need to complete any additional formalities.

That is not always the case.

Spain’s Large Companies and Strategic Groups Unit (Unidad de Grandes Empresas y Colectivos Estratégicos, or UGE), which processes these residence authorizations, currently establishes as a general criterion that people carrying out their activity from Spain must comply with the corresponding Social Security obligations. The way this is done varies depending on the type of employment or professional relationship.

Where Do You Need to Pay Social Security Contributions If You Work Remotely From Spain?

The quick answer is as follows:

There is therefore no single solution that applies to every remote worker moving to Spain.

Nationality, the country from which the worker is relocating and, above all, the type of relationship with the foreign company can completely change the way the application should be approached.

If You Are Employed by a Foreign Company

Where there is an employment relationship, the rule published by the UGE is that the worker must generally be affiliated with the Spanish Social Security system.

To do so, the foreign company must first register with the Spanish Social Security authorities as a non-resident entity without a permanent establishment in Spain. This enables the company to subsequently register the employee under Spain’s General Social Security Scheme.

There is, however, an important exception: certain employees may remain subject to the Social Security system of their country of origin where an applicable international agreement exists and the situation can be properly documented.

If You Are Self-Employed or a Freelance Professional

The administrative criteria are different for self-employed workers.

The UGE expressly states that self-employed professionals must register under the Special Scheme for Self-Employed Workers (RETA).

In addition, the UGE’s currently published FAQs indicate that, in this type of case, registration with RETA cannot be replaced by relying on Social Security coverage under a bilateral agreement.

This distinction between employees and self-employed workers is fundamental and should be reviewed before submitting an application.

If You Remain Covered by Your Home Country’s Social Security System

The fact that you are currently paying contributions outside Spain does not automatically mean that you can continue doing so after relocating.

For employees, the UGE allows Spanish registration to be replaced where, among other requirements, two conditions are met:

• an applicable international Social Security agreement exists between Spain and the country of origin;
• the competent institution in that country issues the relevant documentation expressly certifying that the worker remains covered while carrying out their activity from Spain.

For this reason, the existence of an international agreement is only the first step. You must also determine exactly which situations it covers and whether the foreign authority is prepared to issue the necessary certificate for your specific case.

Working for a Foreign Company From Spain: Social Security Obligations

One of the most common situations involves a person employed by a US, Mexican, British or other foreign company who wishes to continue working for the same employer after moving to Spain.

From an immigration perspective, Law 14/2013 specifically provides for the possibility for third-country nationals to reside in Spain while remotely carrying out professional or employment activities for companies located outside Spanish territory.

However, maintaining a foreign employment contract does not eliminate Spanish Social Security obligations.

When Do You Need to Contribute to Spain’s General Social Security Scheme?

If you are an employee and cannot prove that you remain validly subject to your home country’s Social Security system, your employer will generally need to arrange your registration in Spain.

According to the UGE’s FAQs, the foreign company must first register as a non-resident entity without a permanent establishment in Spain before it can register the employee under the General Social Security Scheme.

This means that preparing the immigration application does not depend solely on the worker.

Before starting the process, it is also important to know whether the foreign employer is willing to complete the required administrative procedures in Spain.

What Obligations May Your Foreign Employer Have?

Where Spanish Social Security legislation applies, the company may need to complete prior registration and affiliation procedures.

It is therefore advisable to discuss the situation with the company’s HR, payroll or legal department before submitting the residence application.

A company may be perfectly comfortable allowing an employee to work remotely from Spain while being unaware of the administrative implications involved in relocating that employee to another country.

Discovering this issue only after the immigration process has already started can cause delays and complications that could have been anticipated.

Can a Company Without a Permanent Establishment in Spain Register You?

Yes.

The UGE’s published criteria specifically contemplate the possibility of a foreign company without a permanent establishment in Spain registering with the Spanish Social Security authorities as a non-resident entity and subsequently registering the employee.

Therefore, the fact that your employer does not have a physical office in Madrid, Barcelona or another Spanish city does not necessarily prevent you from being registered under the General Social Security Scheme.

Can You Continue Paying Social Security Contributions in Your Home Country While Working From Spain?

In certain cases, yes.

However, this possibility needs to be assessed carefully.

It is not enough to prove that you are already paying Social Security contributions in your country. Nor is it enough to confirm that Spain has signed a Social Security agreement with that country.

For employees, the UGE requires both an applicable international instrument and documentation issued by the competent Social Security institution confirming that the worker remains covered while carrying out their activity from Spain.

How Do International Social Security Agreements Work?

International Social Security agreements are designed to coordinate the social protection systems of two or more countries and, among other things, help prevent certain cases of double contributions.

As a general rule for posted workers, the Spanish Social Security authorities explain that a worker is normally subject to the legislation of the country where the activity is actually carried out, although international agreements may establish exceptions for temporary postings.

The difficulty is that each agreement contains its own rules, time limits and categories of workers.

It is therefore not enough to search online for whether an agreement exists between two countries and assume that it automatically allows contributions to remain in the country of origin.

What Certificate Do You Need to Prove Social Security Coverage?

The document must be issued by the competent institution in the country whose legislation you intend to remain subject to.

For this immigration procedure, the UGE also requires that the documentation expressly demonstrates that the remote worker remains covered while performing the activity from Spain.

This is particularly important because a generic certificate of affiliation or a contribution history may not be sufficient.

Why a Bilateral Agreement Does Not Automatically Mean You Can Continue Contributing Abroad

Imagine that Spain has a Social Security agreement with your country.

That alone does not answer questions such as:

• whether the agreement covers your specific type of posting;
• how long you may remain subject to the legislation of your country of origin;
• which institution must issue the certificate;
• whether the employer meets the conditions required to request it;
• or whether your situation can legally be classified as a temporary posting under the agreement.

For this reason, the Social Security agreement and the immigration application should be reviewed together, rather than treated as two separate matters.

Workers From the United States and Mexico: What Happens With Social Security Contributions?

The United States and Mexico are particularly relevant examples for professionals who want to continue developing their careers while living in Spain.

Spain maintains Social Security coordination instruments with both countries, but the existence of these agreements does not mean that every remote worker can automatically continue contributing in their country of origin.

Working From Spain for a US Company

Spain and the United States have a Social Security agreement that contains rules on applicable legislation and posted workers.

Spanish official information provides mechanisms that allow certain posted employees to temporarily remain subject to the Social Security legislation of their country of origin.

For a remote-work residence application, however, the key issue is whether the worker’s specific situation falls within the scope of the agreement and whether the competent US authority can issue the certificate required by the Spanish authorities.

The application should not be submitted on the assumption that the agreement will automatically apply.

Working From Spain for a Mexican Company

Spain and Mexico have maintained a Social Security Agreement since 1994, which entered into force on 1 January 1995.

The system includes certificates relating to the applicable legislation for certain worker postings between the two countries.

However, an employee who wishes to move to Spain while continuing to work remotely for a Mexican company must determine whether their specific situation allows them to remain subject to Mexican Social Security legislation and whether the competent authority can issue the documentation required by the UGE.

Once again, the agreement should not be interpreted as an automatic exemption.

What Should You Check Before Submitting Your Application?

If you work for a US, Mexican or other foreign company in a country with a Social Security agreement with Spain, it is advisable to resolve the following questions first:

1. Am I an employee or a self-employed professional?
2. Is there an applicable international Social Security instrument between Spain and my country?
3. Is my particular employment situation covered?
4. Which certificate must be issued by the foreign institution?
5. Can that certificate be obtained before submitting the application?
6. If it cannot, is my employer prepared to register and pay Social Security contributions in Spain?

Answering these questions before starting the process can prevent one of the most common problems: having an immigration application that appears to meet the residence requirements while leaving the Social Security position unresolved.

Self-Employed Foreign Professionals in Spain: When Do You Need to Register With RETA?

If you work as a freelancer, consultant or independent professional for foreign companies, your situation is different from that of an employee.

The UGE accepts that a self-employed professional may qualify for international remote-work residence authorization provided that, among other requirements, they can prove the relevant professional relationship with a company located outside Spain.

However, once classified as self-employed, the current administrative criteria require registration with RETA.

Social Security Registration as a Self-Employed Worker

RETA is Spain’s Social Security scheme for people who carry out economic or professional activities on a self-employed basis.

According to the UGE’s official FAQs, the professional must personally arrange registration under this scheme.

In addition, the administration currently states that these self-employed professionals cannot replace RETA registration with foreign Social Security coverage under a bilateral agreement.

This is one of the issues that creates the most confusion among professionals who are already registered as independent workers in another country.

Tax Registration and RETA Registration: What Is the Difference?

Registering with the Spanish Tax Agency and registering with Social Security are related procedures, but they are not the same thing.

In simplified terms:

• Tax registration determines the tax obligations associated with carrying out your professional activity.
• Social Security registration determines the applicable contribution scheme and corresponding Social Security obligations.

To simplify both procedures, the UGE states that the worker may take the favorable immigration decision to a Business Support Point (Punto de Atención al Emprendimiento, PAE) and request tax and Social Security registration through the CIRCE system.

When Should You Register After Receiving Authorization?

This point deserves particular attention.

The UGE’s own FAQs warn about the consequences of obtaining authorization as a self-employed professional and failing to complete the required registration immediately afterwards.

If a subsequent review reveals that the registration was never completed, the authorities may initiate proceedings to terminate the residence authorization.

Receiving a favorable immigration decision therefore does not necessarily mean that the process is complete.

There are also subsequent obligations that must be fulfilled and maintained.

Can You Continue Contributing as a Self-Employed Worker in Your Home Country?

According to the criteria currently published by the UGE for this type of authorization, self-employed workers must register with RETA and cannot replace that affiliation by relying on rights derived from a bilateral Social Security agreement.

For this reason, the same solution that may be available to an employee of a foreign company should not automatically be applied to a freelancer.

What Happens If You Fail to Register With Social Security When You Are Required to Do So?

Social Security should not be treated as an isolated requirement that is checked only when the application is first submitted.

The conditions that made it possible to obtain residence authorization must continue to be met.

In the specific case of self-employed workers, the UGE warns that if a later review reveals that the required registration did not take place, the administration may proceed with the termination of the residence authorization, with potential consequences for dependent family members as well.

Administrative Consequences of Non-Compliance

An affiliation problem can directly affect your immigration status.

For this reason, it can be particularly risky to:

• continue paying contributions only abroad without confirming that this is legally valid;
• delay registration as self-employed;
• submit coverage documents that do not comply with the applicable agreement;
• or assume that the foreign company does not need to complete any administrative procedures.

Each case should be correctly structured from the outset.

How Can This Affect the Renewal of Your Residence Permit?

International remote-work residence authorization has a specific validity period, and its continuation depends on maintaining the conditions that originally allowed the permit to be granted.

Law 14/2013 provides for renewals where those conditions continue to be met.

For this reason, having your Social Security position properly documented from the beginning can also make future administrative reviews and renewals easier.

It is better not to wait until renewal to discover that contributions have been paid for months or years under the wrong system.

Social Security and Private Health Insurance: What Is the Difference?

These two concepts are often confused, but they are not exactly the same.

Social Security affiliation determines where a worker contributes and which social protection legislation applies.

Health insurance, on the other hand, relates to the requirement to have sufficient healthcare coverage during residence in Spain.

When Does Social Security Satisfy the Healthcare Requirement?

Where the worker is correctly registered in the Spanish system and is entitled to public healthcare coverage, this may satisfy the healthcare requirement.

There are also certain situations in which an international coordination instrument allows the applicant to prove healthcare coverage through certificates issued by the country whose Social Security system continues to cover them.

However, Social Security contributions and healthcare coverage should be checked separately, because an agreement may coordinate certain benefits without necessarily covering every situation in the same way.

When Do You Need Private Health Insurance?

Where the applicant cannot demonstrate sufficient public healthcare coverage through the applicable Social Security system, private medical insurance may be required.

The UGE’s current FAQs state that this insurance must be contracted with an insurer authorized to operate in Spain.

What Must the Insurance Policy Include to Be Accepted for Immigration Purposes?

Not every policy is sufficient.

The UGE expressly states that the following are not considered suitable:

• travel insurance;
• policies limited to reimbursement of medical expenses;
• policies with waiting periods;
• and insurance policies with co-payments.

Therefore, before purchasing a policy solely for the purpose of submitting the application, it is advisable to confirm that it meets the immigration requirements.

What Happens If Your Company Has a Branch or Subsidiary in Spain?

The existence of a corporate structure in Spain may change the legal analysis.

It does not necessarily mean that every international company with offices in Spain is excluded from the international remote-work regime. The key issue is how the worker’s relationship with the Spanish entity is actually structured.

When Could Your Situation Be Considered an Intra-Company Transfer?

The UGE itself addresses the situation of workers linked to a Spanish branch and warns that where mobility takes place as a transfer between companies belonging to the same group, the case may instead fall under the intra-company transfer, or ICT, category, which has its own requirements.

Law 14/2013 regulates intra-company transfers and international remote work as separate immigration categories.

Difference Between International Remote Work and an Intra-Company Transfer

Under international remote work, the professional carries out their activity remotely for a company located outside Spain.

In an intra-company transfer, however, there is a movement within the same company or corporate group toward an entity located in Spain.

This distinction may affect the type of authorization required, the supporting documents and the applicable Social Security scheme.

For this reason, where there is a Spanish branch, subsidiary or company within the same corporate group, the corporate structure should be reviewed before deciding which immigration procedure to use.

What You Need to Do Depending on Your Employment Situation: Practical Summary

Before submitting an application to work from Spain, identify which of the following situations most closely matches yours.

I Am Employed by a Foreign Company

You need to determine whether you can validly remain under your home country’s Social Security system.

If this is not possible, you will need to assess the foreign company’s registration in Spain and your affiliation with the Spanish General Social Security Scheme.

I Am an Employee and My Country Has a Social Security Agreement With Spain

Do not assume that the agreement automatically resolves the matter.

Check which situations it covers and ask the competent institution for the certificate expressly confirming that you remain protected while carrying out your activity from Spain.

I Am Self-Employed or Freelance

The UGE’s current criteria require registration with RETA.

You should therefore anticipate from the beginning both the tax and Social Security obligations associated with carrying out your professional activity from Spain.

My Company Has a Spanish Branch or Subsidiary

You should determine whether your situation genuinely qualifies as international remote work or whether the structure of the relocation fits another immigration category, such as an intra-company transfer.

Do You Have Questions About Where You Should Pay Social Security Contributions While Working Remotely From Spain?

Social Security is one of the issues that can have the greatest impact on an application to move to Spain while continuing to work for a foreign company.

Two people with apparently similar jobs may require completely different solutions because one is an employee and the other is self-employed, they come from different countries, or they are covered by different international agreements.

Before submitting your application, it is therefore advisable to confirm not only that you meet the immigration requirements, but also how your employment status, contributions and healthcare coverage will be structured from day one.

At Sterna Abogados, we can review your situation, assess your employment or professional relationship and help determine which documents you need before beginning the process.

If you are still considering this residence option, you can also visit our specialist page on the Digital Nomad Visa in Spain, where we explain the general eligibility requirements and application process.

Book a consultation with our immigration lawyers and we will review the right strategy for your case before you submit your application.