Are there fewer restrictions on remote work with the Spanish Digital Nomad Visa than with the Spanish Non-Lucrative Visa?

Yes, the Spanish Digital Nomad Visa offers fewer restrictions on remote work compared to the Spanish Non-Lucrative Visa. While the Digital Nomad Visa is specifically designed to accommodate remote workers, allowing them to work for non-Spanish companies, the Non-Lucrative Visa strictly prohibits any form of professional activity, including remote work.

Eligibility Requirements

The eligibility criteria for the Spanish Digital Nomad Visa and the Spanish Non-Lucrative Visa differ significantly, reflecting their distinct purposes. The Digital Nomad Visa is tailored for individuals who work remotely, typically for companies outside of Spain. To qualify, applicants must demonstrate a stable income from their remote work, generally requiring proof of employment or contractual agreements with foreign companies. Additionally, a minimum monthly income threshold—often around $2,500—is set to ensure the applicant can sustain themselves while living in Spain.

On the other hand, the Non-Lucrative Visa targets those who wish to reside in Spain without engaging in any work-related activities. Applicants must provide evidence of financial self-sufficiency, typically through bank statements or proof of investment income, with a required minimum income similar to that of the Digital Nomad Visa. However, this visa strictly prohibits all forms of employment, including remote work.

Application Process

The application processes for both visas involve several steps, but they differ in terms of documentation and intended use. For the Digital Nomad Visa, applicants must submit proof of remote employment, a clean criminal record, health insurance coverage, and financial means to support themselves. The application is usually submitted at a Spanish consulate or embassy in the applicant’s home country.

In contrast, the application process for the Non-Lucrative Visa requires extensive financial documentation to verify the applicant’s ability to live without working in Spain. This includes bank statements, proof of passive income, and a health insurance policy. Like the Digital Nomad Visa, applications are submitted through Spanish consulates or embassies abroad.

Comparison with Other Visas

While this residency permit is ideal for retirees, the Spanish Digital Nomad Visa is designed for remote workers looking to live in Spain without the constraints on professional activity inherent in the Spain retirement visa. The Digital Nomad Visa allows its holders to work remotely for companies based outside of Spain, a significant advantage for those wishing to maintain their careers while enjoying the Spanish lifestyle.

Tax Implications

Both visas have distinct tax implications, which are critical for applicants to consider. Under the Digital Nomad Visa, residents may benefit from Spain’s Beckham Law, potentially allowing them to pay a flat tax rate of 24% on their income earned abroad for up to six years. This tax incentive is a significant draw for remote workers looking to optimize their tax situation while living in Spain.

Conversely, individuals on the Non-Lucrative Visa are considered tax residents of Spain and are subject to Spanish tax rates on their worldwide income. This can lead to higher taxes for those with substantial foreign income, as Spain’s progressive tax rates can be quite steep.

Length of Stay and Renewability

Both visas initially grant residency for one year, with opportunities for renewal, though the conditions differ slightly. The Digital Nomad Visa can be renewed for up to two additional years, provided the applicant continues to meet the income and remote work criteria. This visa provides a clear pathway for digital professionals seeking a longer-term stay.

The Non-Lucrative Visa also allows for renewals, typically every two years, contingent on the applicant maintaining their financial independence and not engaging in any work. After five years, holders of either visa may apply for permanent residency, although the pathway is more straightforward for those on the Digital Nomad Visa due to the clear guidelines regarding remote work.

Family Members and Dependents

Both visas permit the inclusion of family members, but there are nuances in the requirements. The Digital Nomad Visa allows family members to join the applicant, with financial requirements scaled up to cover dependents. This visa’s flexibility in allowing work can benefit families where one partner works remotely.

The Non-Lucrative Visa also allows family reunification, but the financial requirements are higher to ensure that the primary applicant can support their dependents without engaging in work. This can make it a less attractive option for families where financial self-sufficiency is a concern.

For more details, check out our comprehensive guide – Make Spain your Home – Complete Guide.

Got questions about living in Spain? Get in touch or chat with us on Zoom to find the best visa route for your move.