We hear more and more about the concept of digital nomad in our daily conversations, but few know what exactly this concept means and how to become a digital nomad in Spain.
Why would you want to be a digital nomad in Spain? Easy, it has many advantages over other professional typologies. In this article we explain what it is to be a digital nomad in Spain, what advantages it may benefit from to be a digital nomad in Spain and how to become a digital nomad in Spain.
What is it like to be a digital nomad in Spain?
A digital nomad is a skilled worker who makes use of the internet and/or new technologies to carry out their work or professional work. Therefore, they must be able to carry out their work remotely and not have to reside in a fixed or stable place.
These characteristics allow the digital nomad to enjoy a lifestyle that has little to do with the conventional lifestyle of working in the same place and performing their duties in the same place for most of their working life.
With the advent of the information age, a change is taking place in the labor market that has as a precedent the last industrial revolution. Today, professions are being lost and can be replaced by mechanical processes carried out by machines and at the same time new jobs are being created that did not exist before, offering a new paradigm within the labor market worldwide.
Why be a digital nomad in Spain?
Spain understands that this type of qualified worker profile is an attractive profile for them to reside for a certain period of time within the national territory and therefore, through various mechanisms, such as the Create and Grow Act, it tries to attract this type of worker by offering them advantages to reside in Spain for a period of time in the event that they meet certain requirements.
What advantages does Spain offer to digital nomads?
Spain provides a special regime for those qualified workers who intend to take up residence in the national territory in order to enjoy certain tax benefits for a certain period of time.
The special regime lasts for 5 years. After these five years, in the event that the digital nomad decides to extend their stay in Spain, they will move to the general taxation regime, which will be for Personal Income Tax instead of Non-Residents Income Tax, thus taxing in tranches progressively instead of applying the fixed rate.
The most relevant point of this special regime is the general rate at which the income of these digital nomads will be taxed, which consists of a fixed rate of 24% up to income of 600,000 euros.
How to be a digital nomad in Spain
In addition to the relevant documentation required to initiate the procedure for the identification of the digital nomad, such as his/her passport, registration certificate, application form, etc., the following points should be considered:
- It will be necessary to prove that the digital nomad has not been a tax resident in Spain in the last 5 years;
- A letter of posting containing a job offer in Spain for the digital nomad will be required, in order to prove to the administration the real existence of the digital nomad job;
- Both the job offer and the posting letter must be signed. In the event of not having the offer and/or the posting letter signed, correspondence is accepted that proves the employment relationship between the company and the digital nomad that can prove the causality in the digital nomad posting to Spain.
The administration will assess the applications and decide favorably or unfavorably.
If you want to be a digital nomad in Spain and want us to help you with the processing of the procedure, do not hesitate to contact us here: Contact us – Spanish Companies Incorporation