Spain rises in the list of destinations most desired by digital nomads after this change in regulations, the result of the recent approval of the law for the promotion of the ecosystem of emerging companies (Law 28/2022, of December 21) or Law of Startups. The new regulation of the special regime for displaced workers incorporates a series of modifications and benefits that are intended to attract the increasingly numerous digital nomads to Spain.
The Startup Law is not the first amendment to Spanish tax regulations to attract high international income. In 2005 Royal Decree 687/2005 reforms the special regime for displaced workers, one of the first beneficiaries being the footballer David Beckham, who would give his name to the regulations. The Beckham Law modifies the Personal Income Tax Regulations (IRPF) offering a series of benefits to large foreign fortunes.
Following in the footsteps of the Beckham Law, the Startup Law is approved with the aim of attracting international talent, qualified professionals and high-income foreigners to Spain. The regulation modifies the regulation of the special regime for displaced workers giving rise to the Beckham Law 2023 and the visa for digital nomads in Spain. The application of the regime is extended to workers, professionals, entrepreneurs and investors residing outside the European Union and displaced to Spanish territory. The requirements to facilitate access to the visa are modified and the tax conditions are reformed, increasing the attractiveness of Spain as a residence destination.
Among the tax benefits of the new regulations, taxation in the Non-Resident Income Tax (IRNR) stands out, obtaining more favorable conditions and maintaining the status of taxpayers for the Personal Income Tax (IRPF). In this way, taxpayers who meet the requirements and are covered by the new regulation will maintain their taxation at 24% during the first 600,000 euros of work income, compared to 54% that could be achieved by paying personal income tax. Another of the main innovations is that the visa is extended to the applicant’s family, allowing children and spouses to benefit from identical tax conditions. In short, the Startup Law offers a more advantageous tax regime designed to favor digital nomads who do not belong to the European Economic Area.
The main advantages of the Beckham 2023 Law are the changes in taxation and visa access, however, there are other incentives. The characteristics of Spain can play a decisive role: culture, gastronomy, leisure, nature, climate… and a long etcetera to which is added the price of life in Spain, much more affordable compared to other countries. Among the incentives is the duration: the visa is granted for 12 months and can be renewed for up to 5 years, allowing foreigners who obtain it to develop their life in Spain. It must be remembered that the direct relatives of the applicant also enjoy the visa and its benefits.
On the other hand, the opportunities for Spain with the Startup Law go beyond the economic level. From a professional point of view, having international talent and highly qualified professionals is a possibility for growth. In the cultural aspect, the arrival of international foreigners is an opportunity for enrichment and learning. In addition, considering the period for which the visa is granted, the relationships established between Spain and the digital nomads that meet the requirements and their families, far from being ephemeral, can be extended over time and strengthened.
The digital nomad visa in Spain can be requested electronically from the electronic headquarters of the Ministry of Inclusion, Social Security and Migrations, by sending the corresponding form. Other options would be to start the procedures from the embassy or consulate of the country of origin, or to enter Spain with a tourist visa and start the procedures here.
To obtain the digital nomad visa, it is essential to present the documentation and carry out the procedures correctly, professional advice being advisable. Legal advice is also advisable during the review of the requirements, to start the application with the guarantee and peace of mind of a satisfactory outcome. In the same way, the documentation presented must be supervised, paying special attention to that which proves compliance with the requirements and thus ensuring success in obtaining the visa.
