Taxes for Digital Nomads in Spain

Written by Juan Madridejos Velasco and Luis Alberto Álvarez Moreno, Notaries in Barcelona and partners at J&LA Notarios Asociados.

Besides the great weather and low cost of living, Spain is an exciting destination with a rich culture. Further, the country has recently approved digital nomad visa legislation. To obtain this visa, you must successfully qualify for citizenship, healthcare and work experience. In this article we explain taxes for Digital Nomads in Spain and tax residency status.

Understanding Taxes for Digital Nomads in Spain

As a digital nomad living and working in Spain, you must know your tax obligations and understand your tax residency status. There are three categories considered when determining taxes for Digital Nomads in Spain.

Before considering taxes: know what’s the Digital Nomad Visa

A digital nomad visa resonates with a full employment visa but grants temporary residency rights to foreigners for six months to two years. Nonetheless, you must be employed and meet the minimum monthly income requirement.

Digital nomad visa target individuals working remotely in the digital sphere or those whose employers are outside Spain.

Requirements to Apply for Digital Nomad Visa

  • To apply for the Spanish nomad visa, you must be a resident of a country outside the EU and European Economic Area. The Spanish authorities conduct a criminal background check. Applicants should not have a criminal record two years before applying.
  • Successful applicants to Spanish digital nomad must demonstrate work or education experience. You must also demonstrate work with companies outside Spain for at least three months to your application.
  • Spanish digital nomad visa must be for individuals working from home. To succeed, provide proof of an online work contract for at least three months before applying to a Notary in Spain. Further, the remote work company needs to be outside Spain notwithstanding, multiple clients can employ you.

Categories Considered When Determining Taxes for Digital Nomads in Spain

Tax Residents

A tax resident in Spain stays in the country for more than 183 days in a year. Tax residents are liable for income tax in Spain. Spain’s digital nomads must prove they have been out of the country for over 183 days. Proof of absence, like travel tickets and rental contracts, is handy here. Notario in Spain like JLA Notarios will help organize this.

Essential Interests in Spain

If you do not fit in tax residency, other factors count. The authorities check whether you have interests like a partner or children living in Spain.

Financial Interests in Spain

The authorities also check your assets and financial situation to determine your fiscal assets. Work with professionals to evaluate the property, bank deposits or car. If digital nomads spend most of their time outside Spain but have a significant property in the country, they must pay income tax.

Digital Nomad Deductions and Allowance in Spain

As a digital nomad in Spain, you can claim deductions and allowances to reduce your tax bill. For example, you can deduct expenses related to your work, such as equipment, software, and travel costs. There are also allowances for specific situations, such as those with dependents or contributing to a pension plan.

Value Added Tax (VAT)

If you provide services or sell goods in Spain, you will be subject to Value Added Tax (VAT). The current VAT rate in Spain is 21%. This means that if you sell digital products or services, you must charge VAT to your customers and declare and pay the VAT to the Spanish tax authorities.

JLA Notarios: Notaries in Barcelona

Spain offers low tax rates for digital nomads that could save you a lot of money on taxes. If you need more information or help to declare taxes, we highly recommend you to contact a Gestor. These professionals are dedicated to tax management and declaration.

As a Notary in Barcelona, we do not take care of tax declarations for digital nomads, if you want more information on the Notary functions, you may check this other article from our blog:

Contact us for more details, we’ll be happy to help! You can contact us through the contact formphoneemail, or even WhatsApp!

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