Enjoy Big Tax Perks with Spain’s New Digital Nomad Visa

Spain’s recently launched Digital Nomad Visa gives remote workers an open invitation to work while soaking in the Spanish sun and culture. With income thresholds as low as €2,520 monthly for individuals, securing approval is far easier than for comparable European permits.

But the favorable eligibility is only part of what makes España’s trailblazing nomad visa scheme a remote worker’s daydream. Perhaps an even bigger draw lies in the tax perk it unlocks for successful nomad applicants. As part of incentivizing mobile talent influx and driving economic growth, Spain created a special non-resident taxpayer regime for digital nomads on this dedicated visa. It removes barriers the locally taxed face, enabling substantially reduced rates on global earnings.

Single 24% Flat Income Tax Rate

Qualified digital nomads can opt for non-resident status taxation, even while residing in Spain over 183 days yearly. This provides a mammoth discount, with employment income taxed at a 24% flat rate instead of upwards of 47%.

You benefit from the lowered single rate on worldwide earnings up to a lofty €600,000 annually. With this privileged status lasting your first 5 years in Spain, it equates to gigantic cumulative savings over paying standard resident progressive taxes.

To qualify for the discounted non-resident digital nomad tax regime, you must file a special application with the Spanish tax agency within 6 months of securing your location-independent worker visa.

Fortunately, Spain holds double taxation agreements with over 90 countries globally, spanning the United States, United Kingdom, Canada, Australia, and New Zealand plus all European Union member states. This means that if you are paying tax on your foreign income in your home country, you won’t be taxed on it again in Spain, therefore avoiding double taxation.

As clearly evidenced by analysis of Spanish tax law eligibility criteria, qualifying as a non-resident taxpayer instead of a standard resident enables substantially lower income tax rates on globally-sourced earnings from abroad.

Specifically, digital nomads who have not lived in Spain over the past 5 years can qualify to only pay a 24% flat rate on foreign income up to €600,000 annually. This presents massive savings over the upwards of 48% top bracket under Spain's standard progressive resident tax scheme.

To certify their non-resident status and activate related tax benefits, digital nomad visa holders must file a separate application with the Spanish Tax Agency within 6 months of securing residency approval. The process mirrors that of Spain's Beckham Law aimed at attracting foreign professional talent.

For digital nomads who match the basic eligibility criteria, Spain’s remote worker visa offers the whole package. Approval grants years of legal residency to soak in vibrant culture amid postcard-worthy landscapes.

But the tax goodies unlocked for non-residents maybe the most mouth-watering incentive luring location-independent expats. With discounts spanning multiple tax categories, the savings over locally taxed add up substantially.

The potential 5 years of preferential tax treatment lets globally earning digital nomads stretch incomes further against Spain’s already lower costs of living. And perhaps best of all, you get to claim the discounts all while calling Spain’s sand-fringed shores or picturesque ancient cities home sweet home.

If you want to get your Spanish Digital Nomad Visa seamlessly, we can assist you. Click here to get started