Spain´s Digital Nomad Visa

This was my dream for many years before I actually took the plunge and moved to Spain.

Working in an office on the outskirts of Edinburgh in the UK, staring out at the grey rain day after day in one of the wettest Februarys ever, I craved sunshine.

I wanted to feel the warm sun on my face, I wanted a slower pace of life..well, actually I wanted a life full stop. Not the 8-8 in the office life that I had then, arriving at work in the dark and driving home again in the dark. Via M&S for a microwave dinner and a bottle of low-alcohol wine (a poor attempt at trying to be a bit healthier!).

I wanted to actually live life, not just exist!

My life had become a treadmill of making it through each week and then collapsing on the sofa for most of Saturday to try and recover. I had started to feel like life was passing me by. Although I had achieved the career success and financial freedom I had been working towards, it really wasn´t much of a life when I didn´t have time to enjoy my so-called success.

How do you make the transition when there are limitations on how long you can spend in Europe? What to do if you´re self-employed? What if your employer says no?

And so I hatched a plan. I decided I was going to move to Spain and run yoga retreats. But of course, this was nearly 9 years ago, pre-Brexit, and it was a lot easier for a Brit to move to Europe then.

But do not get me started on Brexit. I still do not know what people were thinking when they thought that it was a good idea…

And the yoga retreats? That´s a story for another day.

Anyway, moving on…I know that many of you have the same, or a similar, dream. You are tired of being stuck in the same place day in and day out, especially after a winter of cold and wet weather. Your employer is slowly, slowly trying to drag you back to the office. Your commute is crazy (British train strikes anyone?) and you can no longer afford your coffee habit, never mind a sandwich bar lunch.

But what to do? How do you make the transition when there are limitations on how long you can spend in Europe? What to do if you´re self-employed? What if your employer says no to remote working full-time?

Let´s start with looking at Spain and how you can work there even if you are not an EU citizen.

How to apply

As you may already have heard Spain has recently launched a new Digital Nomad Visa, allowing individuals to live and work in the country for up to a year. This latter point is the most important. Because it allows you to earn money legally while you are there. And it allows you to travel freely throughout the rest of Europe.

Applying for a visa may seem daunting at first, especially if you have never had to do it before, but with a little bit of research and preparation, the process can be relatively straightforward.

The first thing to check is whether you meet the eligibility requirements. To apply for the Digital Nomad Visa, you must be a non-EU citizen who is self-employed or employed by a company based outside of Spain.

The rules around work eligibility include:

Applicants from third-party countries (including the UK) may apply for this type of visa if they work for companies based outside Spain.

Work for Spanish companies may not exceed 20% of the total.

You must be able to prove the following:

That the work can be carried out remotely.

If you are under contract to a company, you have had a professional relationship with the company for at least three months, and the company permits remote working.

If you are freelance, you work with at least one company outside Spain and you will have to provide the terms and conditions of the remote work.

You must be able to demonstrate that you have sufficient funds, defined as a stable income of at least €2,200 per month (2 x the Spanish minimum monthly salary).

Other factors required to meet eligibility requirements:

You are not in Spain illegally.

You have no criminal record in Spain or in the country (countries) that you have lived in for the last five years.

That you have a health insurance policy for at least one year. If it’s a private policy, it must be with a company authorised to offer insurance in Spain.

Once you have confirmed that you meet the eligibility requirements, the next step is to gather all of the necessary documents. This includes a valid passport, a criminal background check, and proof of health insurance. You will also need to provide evidence of your income, such as bank statements or tax returns.

Next is the application form which incurs a fee of €265 euros. The application form can be found on the Spanish consulate website in your country of residence. You can do it before or after you arrive in Spain.

After submitting your application, it can take up to 20 business days for it to be processed. If your application is approved, you will receive a confirmation email and be given a visa to enter Spain (if you´re not already there).

What happens next?

Once you have arrived in Spain, you will need to complete a few additional steps. This includes registering with the local authorities (usually by appointment at a main police station) and obtaining a Foreigner's Identification Number (NIE). You will need this to rent or buy a property and to purchase a car (renting is fine short-term, but it gets really pricey in the summer months). You will also need to obtain a residency permit if you plan on staying in Spain for longer than three months.

At the time of writing the visa has only been available for a matter of weeks and I´m not yet aware of anyone who has applied. But the process does seem fairly straightforward. Time will tell!

You will find that there are many companies out there who will offer to conduct the application on your behalf (for a substantial fee) but I don´t think it´s necessary. The Spanish consulate in your country of residence can provide you with additional information and answer any questions you may have for free.

In Spain, a gestor, or gestoria, will guide you through any administration processes that you need to complete after you arrive and they tend to be cheaper than lawyers. They will be able to advise you on local tax requirements but they won´t be able to advise you on any non-Spanish tax implications. If your situation is complicated I would recommend finding a tax advisor who specialises in international tax. Check out local Facebook groups for your location and ask for recommendations for the professionals you need.

And remember, the Spanish government are trying to attract people into the country so it´s in their interests to help you and make the process as easy as possible. The new law is specifically designed to attract international talent and skills in the digital and technological sectors with a focus on simplifying the paperwork for startups, reducing the tax burden on companies and entrepreneurs, and streamlining the process of setting up a business.

It´s also worth noting that applicants will be able to include close family members such as spouses and children (under 18, other rules apply for over-18s) and even dependent parents in the visa application.

So there goes another of your “obstacles” to making the leap! You don´t need to think about who will care for your elderly parents, or that you will miss them. You can just take them with you!

I have just moved back to Spain after a year of living in Portugal and was hoping to take advantage of the tax benefits of the new visa as a non-EU citizen but alas, as I am registered as a family member of an EU citizen (my husband is Spanish), I´m not eligible. So it looks like I will have to pay the normal rate of income tax!

But on the plus side I would also add that I have sampled both the public and private healthcare systems in Spain and both are excellent. Another thing you won´t need to worry about as private healthcare isn´t that expensive. I pay around €100 per month for a plan that includes dental which is a bargain for a 50+year old person with some health issues!

The tax situation is something I will be investigating in more detail though, so watch this space for more info that, both for digital nomads and permanent residents.

In the meantime, I hope this article is useful and that it brings you one step closer to that dream of living and working in the sun.