Traveling To Tenerife, Spain
A heartfelt true travel story about someone who supposedly "Didn't do travel". Follow his incredible journey to Tenerife, Spain!
It is no secret that digital nomads offer immense economic benefits to countries worldwide.
In a world where the pandemic has taken a toll on international income, more and more countries are releasing their own unique take on the Digital Nomad Visa (DNV).
Spain is following in the footsteps of its neighbouring countries and is currently in the process of creating its very first Digital Nomad Visa.
Yes, thats right - Spain's own nomad visa!
Soon, nomads will be able to experience the La Tomatina Festival, dive into the clear blue oceans of Ibiza, or stroll down the picture perfect streets of Frigiliana, Andalusia.
With the new Spain Digital Nomad Visa, of course.
Let's dive right into it:
As of yet, Spain is still to release their Digital Nomad Visa. But not to worry, here you'll find some important information about the Spain DNV and what you can expect when it's finally launched.
The Spain DNV is a travel authorization that will allow non-EU citizens to legally live and work in Spain. Generally, a Digital Nomad Visa is issued to remote workers who work independently of their location.
I should mention that the new Law responsible for the Digital Nomad Visa is known as the Startup Act. Currently, the Spanish Council of Ministers has agreed to submit a draft version of the Startup Law to the Spanish Parliament.
Once the Startup Act is implemented, it will undergo a continuous period of review and evaluation.
Before I continue
Understand that the Startup Act is still in the review process and has not been implemented yet. Things are bound to change in the next few months and remote workers will soon have an official nomad visa they can apply for.
Once the Spain Digital Nomad Visa is available, we'll update this post with everything you need to know about the application process, document requirements, and how to apply for one.
Quick note: You'll find that many people refer to this type of visa as the Digital Nomad Visa. Another common term is the Nomad residence permit. To avoid confusion, I'll use the term "Spain DNV".
Well, this is the interesting part. Unlike other European Countries, the daft law (Startup Act) states that:
"Another step forward is in relation to the figure of "digital nomads," entrepreneurs, and remote workers that settle in Spain. These individuals will have the option of residing and working in Spain for 5 years, and will be eligible for a special tax regime, paying Non-Resident Income Tax." - The draft Startup Law
According to the statement above, the Spain Digital Nomad Visa will be issued for a period of 5 years. However, be mindful that this could include any visa extension periods.
For example, the initial validity period of the DNV could be 2 years. Afterwards you may be able to extend it for an additional 3 years.
The Spain DNV will be available to all third-country nationals (non-EU citizens) who meet the government's eligibility requirements.
Unfortunately, citizens from the European Union (EU), the Economic European Union (EEA), and the Schengen Area will not be able to apply for a Spain Digital Nomad Visa.
Even though the Spain Digital Nomad Visa has not yet launched, there will be a list of requirements you'll need to meet before applying. Here's what to expect:
You must be able to work independently of your location (remote worker).
You must be able to complete your work responsibilities using information and communication technology such as wifi, laptops, and so on.
You must meet the financial requirements set out by the Spanish government. Generally, this can be anywhere from €1,000 - €3,000.
You will not be allowed to work for a company registered in Spain. In other words, you must be employed by a non-Spanish company/foreign company.
Keep in mind that these requirements may change when the official DNV is announced. Nevertheless, these are the most common requirements for a nomad visa.
The process of applying for the Spain DNV has not been announced yet. However, the process would be similar to most other visa applications.
You'll need to gather all the required documents, submit your application, possibly attend a visa interview, and wait for feedback from the Embassy authorities.
The most important part of the Spain DNV is to prove that you're, in fact, a digital nomad planning to work remotely from Spain.
To do this, you'll need to meet all the government's future requirements and provide documents that prove you're a digital nomad. Such documents typically include, but are not limited to:
An employment contract,
A letter from your employer,
Bank account statements that prove financial sufficiency,
Proof of accommodation for the duration of your stay,
A declaration letter stating that you plan to work remotely from Spain, and so on.
Other required documents may include your passport, a visa application form, travel insurance, etc.
After a successful application, your DNV will be issued by competent authorities. You can begin your next nomadic adventure in Spain once you have received your visa.
Unfortunately no. Nomads whose next destination is Spain still need to wait a little longer.
If you're adamant about traveling to Spain as a digital nomad now, we have the perfect guide for you.
The most common nomad visa options for digital nomads are:
Each of these visas mentioned above has its own specific requirements and application process. Before applying, it's best to research the visa and understand the application process.
With that said, read the following before considering any of these visas for digital nomad purposes.
All of these visas mentioned above don't allow you to work in Spain.
It doesn't specifically state that you can't do remote work in Spain. However, your visa will most likely get denied if your purpose of travel is for remote work.
The best advice I can give you is to be patient. We've seen more and more countries implement nomad visas worldwide. Spain is on the brink of releasing their own nomad visa. Be patient.
In no time, you'll be able to work remotely from Spain. You don't want to risk it by applying for the wrong visa.
But as always, the decision is yours to make.
The new Digital Nomad Visa proposal has been in review for quite some time now. The Spanish Council of Ministers has agreed to supply the Spanish Parliament with a draft version of the Startup Law (which will eventually be known as the official Spain nomad visa).
Keep in mind that creating such a "special nomad visa" does take time.
Once all the legal aspects have been reviewed and rolled out, the Spain DNV will be available to the public.
The government announced that the visa would potentially be available in summer. Nevertheless, there are always some delays in such things. Assuming that everything goes as planned, we could see the Spain DNV launch latest September 2022.
According to the Startup Act, foreign nationals who plan to live and work in Spain (with the new DNV) will pay tax.
Here's what we know:
"Thus, the tax rate for corporate tax and non-resident income tax is reduced from the general rate of 25% to 15% for the first four fiscal years after taxable income is first recorded." - Startup Act
For the first 4 years of living and working in Spain, corporate tax and non-resident income tax will be reduced from 25% to 15%.
"Corporate Tax and Non-Resident Income Tax payments for the first two years in which taxable income is recorded may be deferred, without requiring any deposits or late payment interest, for a period of 12 and 6 months, respectively. And the obligation to make payment instalments on Corporate Tax and Non-Resident Income Tax is eliminated for the first 2 years after taxable income is first recorded." - Startup Act
For the first 2 years, payment on Corporate Tax and Non-Resident Income Tax may be postponed without any additional "extra payments" (like payment interest). Which means:
After 2 years, you'll have 12 months (one year) to pay the previous Corporate Tax
After 2 years, you'll have 6 months to pay the previous Non-Resident Income Tax
If you plan to work remotely from Spain, tax will be a big deciding factor. I'll briefly explain what you can expect.
"Another step forward is in relation to the figure of "digital nomads," entrepreneurs and remote workers that settle in Spain. These individuals will have the option of residing and working in Spain for 5 years and will be eligible for a special tax regime, paying Non-Resident Income Tax. With the aim of drawing talent back to Spain, the general requirements for eligibility in this regime are eased (reducing the previous non-residence period in Spain from 10 to 5 years)." - Startup Act
Generally, you become a tax resident in Spain after 183 days of residing within the country (doesn't have to be consecutive).
On the other hand, Digital nomads will retain their Non-Resident Tax status for up to 5 years.
The Spain Digital Nomad Visa is expected to launch in September 2022. Once the Startup Act has been implemented, applicants will need to meet certain requirements set out by the government. This will enable you to legally work remotely from Spain
The 2 important requirements will be financial sufficiency and proof that you're a digital nomad planning to live and work in Spain.
Once you've submitted your visa application alongside the required documents, your visa will be processed by competent authorities. After approval, you'll receive your new Digital Nomad Visa, which will enable you to legally live and work in Spain.
The following countries provide Digital Nomad Visas to foreigners:
Keep in mind that plenty of other countries (like Spain) are in the process of creating their own unique visas for nomads.
Spain has plenty of great destinations to choose from. Next, you'll find the best 5 destinations for nomads in Spain.
Madrid (Co-working space: Shed Coworking)
Barcelona (Co-working space: La Vaca Coworking)
Seville (Co-working space: Arcadia Coworking)
Costa de Sol (Co-working space: The Cowork Spot)
San Sebastian (Co-working space: CospaceSS)
On average, the total cost of living in Spain is 23% less than that of the US. Nonetheless, the cost of living depends on your lifestyle. If you have a lot of entertainment expenses, your cost of living will increase. A comfortable benchmark would be around $2,000 - $2,500 per month.