The Spanish Parliament has introduced a new visa for start-ups and digital nomads which has reduced their tax by 10 percent. Furthermore, there is a new law that reduces the Corporation Tax from 25 to 15 percent in the first four years of their stay in Spain.
This new special visa can be renewed for up to five years and applies to those who have not resided in Spain in the last four years. This will allow anyone from the EU or third countries to benefit from the visa.
On top of the reduction of Corporation Tax, the law allows remote employees to be able to pay the Non-Resident Tax and applies to such workers who do not stay in the county for more than 183 days but who receive income in Spain.
Digital nomads, a growing sector of the workforce, will also be eligible for the new 15 percent tax rate, limited though to the first four years in the country. The exact earning requirements haven’t been determined, but it’s expected to be approximately €2,000 per month.
They will also be able to work in the country for up to 12 months under this new law and then have options to extend. The first would be up to two years and later up to another five years, by applying for residence authorization to be a remote worker in Spain.
Speaking to the change of law, Economic Affairs Minister, Nadia Calvino said, “It’s one of the most enjoyable moments I’ve experienced in the Parliament. It’s a law that will allow Spain to be at the forefront in the push and promotion of talent in this rapidly growing digital economy.”
The law is expected to be ratified in the Senate during the upcoming weeks and comes at a good time as Spain is trying to make itself more attractive to businessmen and other entrepreneurs. Back in 2016, it was ranked among the worst countries in the OECD for entrepreneurs to start a new business.