Although remote employees can usually work from any location in which they get wi-fi, they need to follow residency regulations in the country where they want to work. Soon, freelancers, remote workers, and digital nomads can add Spain to the list of home bases.
Spain is set to join 15 other countries in the European Union in offering a digital nomad visa. Known as the DNV, this residency permit will allow non-EU citizens to live in Spain while working remotely for a company anywhere in the world.
The law that’s responsible for enabling the DNV is the Startup Act has yet to be passed. However, once it’s in effect, eligible individuals will be able to apply for the DNV if they wish to live in Spain.
There are specific eligibility requirements to obtain a DNV in Spain.
Applicants must work primarily for a country outside of Spain, using technology to communicate with a remote job site. To qualify for this visa, less than 20% of the applicant’s work must be for businesses that are registered in Spain.
The initial duration of the visa may be one or two years. After that, it may be renewed for up to five years. There will be a minimum income requirement, which is expected to be around €2,000 a month.
One of the benefits of the DNV is the lower income tax rate. Workers with this permit will be taxed at 15% instead of 25% for a specified period of time.
Some major Spanish cities, like Madrid and Barcelona, are already hubs for startups and entrepreneurs. Spain’s digital nomad visa is predicted to boost the economy and reduce reliance on tourism.