What is a NOMAD VISA?
If you are able to work remotely for your UK company then the new Digital Nomad Visa would allow you to move to Spain and your maximum tax rate would be 24% for 5 years up to an income of 600,000 euros per annum.
It is intended for those non-EU citizens to travel freely in all Schengen zone countries and for those who would like to move to Spain and keep working for their companies abroad, allowing them to live and work remotely from Spain. The spouse and children would also be included. Applicants will be also allowed to travel to all EU countries.
1. Applicant must be working for a foreign company located outside Spain for at least 3 months and also, the company must be operating for at least 1-year prior application.
2. The company must state in a letter that applicant ́s position allows to work remotely and he/she is allowed to do so.
3. Demonstrate to have sufficient experience and education by either demonstrating 3 years of work-
related experience, or being a graduate from a recognised university or business school.
4. Prove to have 25.000€ by the main applicant and 9.500€ more per dependents through a Bank Certificate. Providing salary or job contract can be also used as a proof of these economic funds.
5. Take a Private Medical Insurance in Spain.
6. No Criminal Records for the last 5 years.
7. Application will be submitted in SPAIN by us so applicants do not need to deal with any Spanish Consulate obtaining a response within 20 days. This application will grant a permit of Residency for 3 years and it can be renewed for 2 more years. After these 5 years, they will be entitled to get a permanent Residency in Spain
Tax advantages of Spain’s Digital Nomad Visa
- All income & assets held abroad go untaxed. In other words, any source of worldwide income is tax-exempt (just like with the popular UKs non-dom tax scheme).
- DNV holders only pay tax strictly on the income they derive working remotely in Spain for a foreign employer. They will pay a flat tax rate of 24% on the first €600,000 of gross annual earnings over a five-year period.
- They are not required to file a 720 tax return (unlike Spanish tax residents)
- The are not required to file Wealth Tax (unlike Spanish tax residents)
- You can request to defer the payment of tax on the first and second year without penalties or delay interests being rolled on top (as is standard)
- For the purposes of other tax agencies, you are considered tax resident in Spain.