Nomad visa in Spain

As of January 1, 2023, there is a new tax regime for digital nomads in Spain.

Access to the special regime will be facilitated by decreasing the number of the previous tax periods to the displacement to Spanish territory. During these tax periods, the taxpayer cannot have been a tax resident in Spain for 5 years (before the law it was 10 years), thus simplifying the access to the regime.

Who can apply for the special regime for displaced workers?

Digital nomads

Employees that can apply for it will be employed workers who move to Spanish territory to work remotely exclusively using computer, telematic and telecommunication resources and systems, even if the relocation has been ordered by the employer. Particularly, this circumstance will be fulfilled in the case of employees who have the Visa for international teleworking (Law 14/2013).

Administrators of start-up companies

Administrators may apply for the regime regardless of the percentage of shareholding they hold in their entity. As an exception to the above mentioned, in case that the company is considered as an asset-holding entity, in the terms of Art. 5.2 of the Corporation Tax (IS), in order to be able to apply the regime, it will be necessary that the percentage of shareholding of the administrator is less than 25%.

Entrepreneurs

the application of the regime is allowed when the relocation to Spain is for the purpose of carrying out an economic activity qualified as entrepreneurial, in accordance with the Art. 70 of Law 14/2013. An entrepreneurial activity has to be innovative and/or has a special economic interest for Spain and to that effect has a favorable report issued by ENISA.

Highly skilled professionals

The application of the regime is permitted when the relocation to Spain has the purpose of carrying out an economic activity by a highly skilled professional, who provides services to Start-up companies (in the terms of art. 3. of Law 28/2022), or who carries out formation or R&D+i, receiving a remuneration for this that represents more than 40% of the total business, professional and personal work. The form of accreditation of the condition of highly skilled professionals , as well as the determination of the requirements to qualify some activity as training, will be determined in due form. (i+d+i)

The family

The application of the regime will be applicable to the displaced worker's family. As relevant news, it is established that the taxpayer's children may apply to be taxed under this regime (as long as they are under twenty-five years old or disabled) and their spouse or, if there is no marital relationship, the other children's parent, seeing they fulfill the following conditions:

• That the above-mentioned people travel with the taxpayer or at a later time to Spanish territory, provided that the first tax period in which the taxpayer is subject to the special regime.
• That they acquire their tax residence in Spain.
• That they have not been resident in Spain during the previous five tax periods to the time in which they move to Spanish territory.
• That they do not obtain income that would be classified as income obtained through a permanent establishment in Spanish territory, except in cases of carrying out in Spain an economic activity qualified as an entrepreneurial activity, or economic activity carried out by highly skilled professionals.
• That the total of the taxable bases of the taxpayer’s family in each period in which this special regime is applicable to them is inferior to the taxable base of the taxpayer that they are accompanying.

Benefits of applying to the special tax regime for displaced workers

The displaced workers regime allows their taxpayers to pay taxes as non-residents, even though their status in Spain actually will be “resident”.

Taxation as a non-resident is a particularly advantageous option for people who relocate to Spain for work reasons and who acquire tax residence in Spain, because they are being taxed only on the income and assets that can be located in Spanish territory and applying more advantageous tax rates. The higher the income and assets outside Spain, the more favorable is this tax regime.

This tax regime has a duration of 5 years starting from the following year in which they apply for the regime.