With the new Nomad’s Visa, the number of international citizens living in Spain is going to increase significantly.
Spain approves the new “Digital Nomad Visa”. Certainly, a major boost to the international technology business and to the property sector in Spain.
Start-ups Law will enter into force on 1st January 2023
This new regulation introduces tax benefits for international investors and entrepreneurs, teleworking for international citizens and other measures to attract and retain digital talent in our country.
This is a great incentive for the Spanish real estate market, especially in tourist destination areas. Our climate, sun, sea, and beaches, make our coastal areas – Costa Blanca and Costa Cálida – the most demanded areas for international citizens to buy their Spanish home.
In Spain, the Start-ups Law was approved on 3rd November 2022 and will come into force on 1st January 2023, with the aim of turning Spain into a hub for entrepreneurship and attracting investment.
Minimum of 20 % increase of investment
The business case is that in three years, after the entry into force of the new law, Spain can achieve a minimum increase of 20 % over the current investment in the entrepreneurship and property business sector.
It also incorporates key measures to attract and recover international and national talent, favouring the establishment in Spain of teleworkers and digital nomads.
The aim is to establish a more flexible procedure so that digital nomads (whether they are entrepreneurs or teleworkers) who want to move to Spain can find a more flexible procedure for obtaining their visa and residence permit. They will have a special tax regime. Spaniards who have been non-residents in Spain for at least 5 years (and who want to return to Spain to telework) would be as well eligible for this measure.
Thus, in addition to reducing the tax rate on corporate income tax and non-resident income tax from the general rate of 25 % to 15 % in the first four years after the taxable base is positive, the regulation facilitates the use of stock options as a form of remuneration, as it raises their tax exemption from 12,000 to 50,000 euros per year and delays their taxation until they become liquid, either through the sale of the shares or through a stock market flotation. Likewise, the conditions for the generation of treasury shares in limited liability companies are made more flexible.
At the same time, the Start-ups Law raises the maximum deduction base for investment in new or recently created companies from 60,000 to 100,000 euros per year. A tax incentive that investors and entrepreneurs will be able to take advantage of. In addition, the deduction rate increases from 30 % to 50 %, and the period in which a start-up is considered to be newly created is set at five years (seven in certain sectors).
Requirements to obtain the Digital Nomads Visa
- Workers shall be required to have maintained a relationship with their current employer of at least one year, and to have at least three years’ experience.
- That at least 80 % of their earnings come from this foreign company for which they work remotely (as this type of visa will not allow them to work for a Spanish company).
- That the remote worker applying for this type of residence is not from the European Economic Area (or has not resided in the European Economic Area for at least the last five years).
- Other requirements: Criminal Record Certificate, not being banned from entering into Spain and health insurance.
- Its period of validity will initially be for one year and then it can be renewed for additional two years, like the Non-Lucrative Visa.