Spain launched its long-awaited 'digital nomad visa' — here's who qualifies and how to apply

[troubled soul]

Spain launched its long-awaited 'digital nomad visa' — here's who qualifies and how to apply​

https://www.businessinsider.com/spa...-january-2023-tax-income-requirements-2022-11

 

[clemens]

As far as discussed here on OCT a dozen times it is not worth to relocate to Spain, people should refrain from doing it!

 

[RealDude]

Taxation?

 

[bigdaddyleon]

Taxation?

Remote workers can pay a reduced tax rate of 15 per cent during the first four years of their stay, provided they earn below €600,000 a year. This is instead of the usual 24 per cent rate. Everything you need to know about Spain's new digital nomad visa

 

[RealDude]

Taxation

But: You must be a citizen of a country outside the European Union

How about EU citizen?

 

[turtle]

Nothing attractive. If I make 2x more than avarage of Spain then why would I move to Spain and pay 15% tax?

 

[clemens]

15% is better compared to 40% and up to 60% that you pay in most other European / EU countries.

But if you only have to pay 15% the first 4 years, then I don't get it why @Martin Everson and Co say it is not worth to relocate to Spain? If you can't relocate to the Bahamas or Dubai, but for other reasons you can relocate to Spain and just pay 15% that's would be sufficient for me?

 

[turtle]

15% is better compared to 40% and up to 60% that you pay in most other European / EU countries.

15% better, If you're salaried but they're looking for people who make their own money and are not EU citizens.

 

[manukahoney]

It's actually quite nice for people it's aiming - high-paid professionals with nomadic lifestyle.
15% sounds a lot, but you need to consider real numbers. For example, you earn 300k per year, it's a lot of money for a good life, but not too much to start covering yourself with layers of corporations, offshores etc.
300k in Spain with 15% tax will feel much more than 300k in Dubai with zero tax - Spain is quite a cheap country after all.

It's not a good program if you have multiple CFC, it's not a loophole in Spanish tax nightmare, it's precisely what it is - people who earn a lot in and want to enjoy nice climate, good food, culture and at the same time save on taxes.

 

[Marzio]

But if you only have to pay 15% the first 4 years, then I don't get it why @Martin Everson and Co say it is not worth to relocate to Spain?

Because it's only 4 years.

 

[luap]

15% tax for a few years - but also a ton of bureaucracy, wealth taxes on worldwide assets, solidarity tax, high penalties even for simple mistakes on a form. If an individual runs a company alone, it can be taxed as personal income (sociedad interpuesta), strict CFC/PE rules - and that's all until you have to deal with the tax office, as they'll just freeze/empty your bank accounts if they decide you owe something, and good luck winning against them.

I'm just waiting to laugh at the announcement in a couple of years that Spain will start considering all the "remote workers" employers as now having a PE in Spain.

 

[Marzio]

I'm just waiting to laugh at the announcement in a couple of years that Spain will start considering all the "remote workers" employers as now having a PE in Spain

LOL it could very well be they built a giant mouse trap.

 

[uncreative]

Taxation

But: You must be a citizen of a country outside the European Union

How about EU citizen?

In addition to the Visa program, the new spanish Startup Law also includes improvements in relation to the old Beckham Law, so I think that EU citizens can make use of it instead of the Visa Nomad Programm.

It is not similar in taxation and period, 24% Tax , up to 6 years , but it should be easier to apply now.

The old beckham law limit of a maximum of 25% shares in a company is no longer applicable, so that it is probably possible to set up your own active company in Spain and act as an administrator/director, only pay 24% taxes on your salary for up to 6 years. I read it often in relation with the new law.

So far, however, no spanish tax lawyer has been able to give me precise information on how to use it as a director with 100% shares of a new founded company in Spain.

That would be a good thing since Spanish companies only pay 15% CIT for the first 2 years.

All in all not bad. But the bureaucracy, starting with the communication about the advantages of the startup law, seems to be a hurdle.

 

[Mssquirrel]

I'm just waiting to laugh at the announcement in a couple of years that Spain will start considering all the "remote workers" employers as now having a PE in Spain.

I wouldn't be surprised if that happens. I would rather move to Portugal.

 

[luap]

So far, however, no spanish tax lawyer has been able to give me precise information on how to use it as a director with 100% shares of a new founded company in Spain.

That would be a good thing since Spanish companies only pay 15% CIT for the first 2 years.

Be careful operating a Spanish company 100% owned by yourself unless you have offices, local staff etc. Since covid, Spain started going after people with this setup and refunding corporate/dividend taxes and charging it all under income taxes. You can research "sociedad interpuesta". Before 2020 this was almost unheard of in Spain but now quite common.

 

[Martin Everson]

But if you only have to pay 15% the first 4 years, then I don't get it why @Martin Everson and Co say it is not worth to relocate to Spain?

Good luck to any non-EEA person taking up this offer. Hopefully Spanish government will offer free stress counseling sessions for anyone having to deal with them also. Not worth it and highly risky that program will get cancelled. Spain has a habit of changing tax rules.

 

[clemens]

Thanks for the advise!

 

[gowiththeflow48]

Anybody has more info about the Spanish Startup Law ?

 

[marioIT]

If an individual runs a company alone, it can be taxed as personal income (sociedad interpuesta)

Just heard Italy is the same. There if you start a single member "LLC" they want the social contributions on all the company revenue, included the undistributed one.
Even if you take an average salary they'll not be happy with the social contributions from that, they want it also from all the company revenue. And if you are both administrator and active working on the company, you are forced to pay 2 times the social contributions.
The cherry on top is that all that money goes to the drain as the pension system is "pay as you go", so it's not like you're going to have it back when you retire, they actually will use your money to pay the current pensioners... 100% ponzi scheme style.
Population is very old in these countries, so when you'll retire nobody will pay yours and you'll end up at best with a 1k/month pension lol
Utterly madness!
You better think all of these things before getting locked in these countries (think about exit taxation too)