Spain offers an ideal location for digital nomads. However, the process of obtaining the Spanish Digital Nomad Visa can be complex. In this article, we’ll cover the most frequently asked questions about the Spanish Digital Nomad Visa, drawing from expert insights provided by our experts at Sterna Abogados.
Quick Facts About the Spanish Digital Nomad Visa
- Visa Duration: Up to 3 years.
- Renewal Possibility?: Yes, extendable for up to a total of 5 years.
- Eligible Applicants: Non-EU/EEA nationals.
- Income Requirement: At least €2,650 monthly for a single applicant.
- Processing Time: Typically between 15 and 45 days.
What is the Spanish Digital Nomad Visa?
The Spanish Digital Nomad Visa allows remote workers—both freelancers and employees—to live in Spain while working for companies or clients located outside of Spain. This visa is designed for individuals who can perform their jobs remotely, without needing to be physically present at a company office. The visa is applicable to a range of remote workers, including freelancers, entrepreneurs, and corporate employees.
However, as of October 2024, only UK employees are realistically able to apply for the Spanish Digital Nomad Visa as employees. For citizens of most other countries, such as the U.S. and Australia, it has become exceedingly difficult to obtain the required Social Security certificate from their home countries that is acceptable to Spanish authorities.
Due to this challenge, most applicants from outside the UK are required to apply as freelancers rather than employees. Freelancers do not face this particular obstacle, making it a more feasible route for those who want to live and work remotely from Spain.
Key Benefits of the Spanish Digital Nomad Visa
- Flexibility in Application: One of the most significant benefits of the Spanish Digital Nomad Visa is the flexibility to apply either from within Spain or from a Spanish consulate abroad. Applying from Spain offers several advantages, such as a more streamlined process and the ability to obtain a permit valid for up to three years, whereas applying from a consulate typically results in a shorter initial visa of just one year. This flexibility allows applicants to choose the method that best fits their needs and timeline.
- Extended Validity: The visa is granted for a maximum of three years (Applying form Spain), making it one of the more generous visa offerings in Spain. Afterward, it can be renewed for an additional two years.
- Family Inclusion: Applicants can bring their families, including spouses and children, to Spain. Family members also receive residency permits and are allowed to work, whether remotely or in Spain.
- Fast Processing Time: The Digital Nomad Visa is typically processed within 20 working days. This quick turnaround allows applicants to make swift adjustments if needed.
- Public Healthcare Access: Freelancers who register for Spain’s social security system gain access to Spain’s public healthcare system, which can also cover their family members.
- Residency Counts Toward Citizenship: One of the key long-term benefits of the Spanish Digital Nomad Visa is that the time spent living in Spain under this visa counts toward the residency requirements for Spanish citizenship. This is especially advantageous for individuals who may wish to establish permanent residency or apply for Spanish citizenship after a set number of years, with the general requirement being 10 years of continuous residence, or just 2 years for citizens of certain Latin American countries, Andorra, the Philippines, or Portugal.
Eligibility Criteria
To qualify for the Digital Nomad Visa, applicants must meet several requirements:
- Work Experience: Applicants must have at least three years of relevant work experience or hold a bachelor’s or master’s degree.
- Income: The minimum income requirement is around €30,000 per year, which translates to approximately €2,650 per month (200% the “SMI”, or average minimum salary in Spain). This income can be demonstrated through contracts with clients or employers, as well as proof of payment over at least three months. Dependents need to show 75% of the SMI each.
- Remote Work: The visa is open to freelancers and employees alike, but the key is that the work must be performed remotely for companies or clients outside of Spain.
Application Process and Required Documents
Depending on whether you apply from abroad or within Spain, the application process may vary slightly. However, certain documents are always required, including:
- Criminal Background Check: A criminal record certificate from the applicant’s home country and any other countries they’ve lived in during the last two years is required. This document must be apostilled and sworn translated into Spanish, meaning it must be translated by a sworn translator, an official translator authorized by the Spanish government to provide certified translations that are legally recognized for official purposes.
- Proof of Employment or Freelance Contracts: Employees must provide proof of employment with companies outside of Spain, while freelancers must submit contracts with foreign clients. Articles of incorporation for companies may also be needed to show that the business has existed for at least one year.
- Proof of Income: This includes bank statements or invoices showing at least three months of payments that meet the income threshold.
- Social Security Certificate (for employees): A challenge arises for employees from countries like the U.S., where obtaining a Social Security certificate for remote work is not possible. For such cases, registering as a freelancer in Spain is often a more feasible solution.
Family Reunification
While the term “family reunification” is used for other types of visas, the Digital Nomad Visa simplifies this process. Family members can join the primary applicant from the outset or come later if preferred.
Importantly, family members are granted residency permits and are allowed to work in Spain, without restrictions. This differs from the primary applicant, who can only work remotely for foreign companies or clients and may only earn up to 20% of their income from Spanish sources.
Healthcare for Digital Nomads in Spain
Freelancers enrolling in Spain’s Social Security system gain access to public healthcare, which also covers their family members. This is a significant advantage, especially for those considering long-term stays. In cases where family members start working in Spain, they too will be entitled to public healthcare coverage, potentially allowing the family to cancel any existing private health insurance.
Employees, however, must generally maintain private health insurance unless their employer registers them for Spanish Social Security.
The Social Security Certificate Challenge for U.S. Citizens
One significant issue for U.S. citizens applying as employees is the requirement to provide a Social Security certificate. U.S. Social Security authorities do not issue this certificate for remote work arrangements.
As a result, American applicants often need to switch to freelancer status or convince their employer to register the company in Spain—something many companies are reluctant to do.
This issue has now spread to other countries, as Spain increasingly requires Social Security certificates to explicitly state that the worker is permitted to work remotely, a stipulation that many countries’ forms cannot accommodate.
If you need help to apply for this visa, make sure to contact us at info@sternaabogados.com
Path to Permanent Residency and Citizenship
Digital nomads can apply for permanent residency after five years in Spain, provided they have not spent more than 10 months outside the country during this period. If they are absent for work-related reasons, this limit can be extended to a maximum of 12 months.
Additionally, digital nomad residents can apply for Spanish citizenship after 10 years of residency. However, citizens of Latin American countries, Andorra, the Philippines, and Portugal can apply for citizenship after only two years, benefiting from a fast-track option. Notably, individuals with dual citizenship from these countries may not even need to renew their Digital Nomad Visa, as they can begin the citizenship process after just two years.
Tax Implications and the Beckham Law
Tax residency is a crucial consideration for digital nomads in Spain. Generally, you are considered a tax resident if you spend more than 183 days per year in Spain. Spain offers a special tax regime known as the Beckham Law, which allows new residents to pay a flat tax rate of 24% on income earned from outside Spain, up to €600,000.
However, the Beckham Law is primarily designed for employees, and it can be very challenging for freelancers to qualify. It is essential to consult with a tax advisor to determine the best tax strategy based on your specific income and circumstances.
Common Pitfalls and Mistakes
- Misunderstanding Time Limits: Applicants must be careful not to overstay their 90-day tourist period. Those already in Spain on a tourist visa must ensure they have sufficient days remaining to apply for the Digital Nomad Visa. Missing this window could result in having to leave the country and reapply from abroad.
- Failure to Declare Entry: If you enter Spain via another Schengen country, you must declare your entry to Spanish authorities. Without this declaration, you may not have sufficient proof of being in Spain, which could complicate your visa application. The best proof of entry into Spain from another Schengen country is the “Declaración de Entrada”, issued at National Police stations within 72hs of entry into Spanish territory.
- Using Incorrect Documents: Applicants must ensure that all documents are properly apostilled and translated into Spanish. A common mistake is submitting notarized copies instead of the original apostilled documents, which can delay the process.
What If Your Application Is Denied?
If your Digital Nomad Visa application is denied, you have several options. First, it’s essential to understand the reason for the denial. Often, applications are rejected due to missing documents, in which case you can gather the missing paperwork and reapply. If time is a factor, you can also file an appeal. It’s important to have a backup plan in place, such as applying for a different visa or appealing the decision while staying legally in Spain.
Transitioning to Other Visas
After obtaining the Digital Nomad Visa, you can transition to other types of residence permits, such as the Non-Lucrative Visa or even an entrepreneur visa if you decide to start a business in Spain. There’s no minimum time to stay under the Digital Nomad visa before swithching. Switching to a different visa type often allows for more flexibility in terms of work and residency.
Conclusion
The Spanish Digital Nomad Visa offers a fantastic opportunity for remote workers to live and work in one of Europe’s most desirable countries. However, the process requires careful planning, specific experience with the procedure, and attention to detail. If you need help to apply for this visa, make sure to contact us at info@sternaabogados.com
By understanding the eligibility criteria, benefits, and potential challenges, you can set yourself up for success and enjoy the many advantages of living and working in Spain.