Spain – Tax Haven for Digital Nomads?
In recent years, an increasing number of people have embraced the digital nomad lifestyle, allowing them to work remotely while exploring the world. Being able to set up your office in a different country every few months sounds like a dream come true, but it can also bring some challenges, particularly when it comes to taxation. However, for those considering Spain as their next destination, there are some compelling reasons why it is seen as a tax haven for digital nomads.
First and foremost, Spain offers what is commonly referred to as the “Beckham Law” or the “Non-Resident Taxation Scheme.” Named after the famous British footballer who took advantage of this law, it offers beneficial tax rates for foreign professionals and high-earners who become Spanish tax residents. Under this scheme, individuals are subject to a flat income tax rate of 24% for the first six years, regardless of the source of their income.
Another enticing aspect for digital nomads is Spain’s progressive tax system, which means that as your income increases, you won’t necessarily be taxed at higher rates. This makes it an attractive option for those who have variable income levels or expect to earn more in the future.
Additionally, Spain allows you to deduct a wide range of business expenses from your taxable income, including the costs of travel, accommodation, office supplies, and professional development. This can significantly reduce your tax liability, especially if you are meticulous about keeping track of your expenses.
Another important factor to consider is Spain’s numerous Double Taxation Agreements (DTAs) with other countries. These agreements aim to prevent people from being taxed for the same income by both countries, providing relief from double taxation. This can save digital nomads from potential financial complications and ensure that their income is taxed fairly.
Furthermore, Spain offers a favorable corporate tax rate of 25% for small and medium-sized enterprises (SMEs). This can be advantageous for digital nomads who establish their own businesses or work as freelancers, as they can benefit from this reduced tax rate.
Aside from the tax advantages, Spain is an attractive destination for digital nomads due to its high-quality infrastructure, affordable cost of living, and mild climate. The country boasts excellent healthcare facilities, reliable transportation networks, and a rich cultural heritage that provides countless opportunities for exploration and enjoyment.
While Spain does offer a favorable tax environment for digital nomads, it is crucial to ensure compliance with all relevant tax regulations. It is recommended to consult with a tax professional who can provide expert advice tailored to your specific circumstances and help you navigate the intricacies of Spanish tax law.
In conclusion, Spain has increasingly become a tax haven for digital nomads due to its beneficial tax schemes, progressive tax system, and extensive DTAs. However, it’s essential to thoroughly understand the legislation and seek professional guidance to avoid any potential tax pitfalls. With its blend of attractive tax conditions, excellent infrastructure, and vibrant culture, Spain has much to offer digital nomads looking for a place to call their temporary home.
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2:43 we have a typo on the screen regarding minimum amount of earnings.
Minimum amount is $2300 USD
Thank you for sharing! I am a couple of years closer to retirement and I am currently evaluating Spain as a destination where to retire. But, looking through the internet so that the income taxes are quite high for a retiree; I am from Puerto Rico. So, these are very good news. Thank you again for sharing!
If we pay taxes in Spain as digital nomads Does it means that we are double taxed?
Hi! great video. is it 15% or 24% tax for nomads? I heard different things from different sources. Thanks 🙂
Good morning, I have a question regarding the 24% tax rate.
If I work as a freelancer for a non-EU company, have tax residence there, a bank account and my center of interest, on what amount do I have to pay 24%?
If I pay 12% in my country of origin, is it worth doing the DNV at this point?
In Europe you should also pay about 20% VAT tax… Not only income tax.
If you compare 5-10 taxed years in EU with offshore countries, you simply pay the flat rate of $200-300K EUR tax for nothing.
1 am looking at the digital nomad visa. Can this be advantageous for a UK LTD company director?
I am also a owner and shareholder (50% with significant control) of the company that will employ me.
Will I get tax advantages? I am unsure of the double tax treaty between UK and Spain.
At the moment I pay myself mainly dividends.
However, If I took my income 100% as salary, would I pay 24% tax only, or because the source of income is UK, will I also owe tax in UK?
What would be the most tax efficient option for UK Ltd director / shareholder?
Thanks!
I don’t get the logic with Spanish regulations. They want you to come spend money contribute to their economy pay them taxes and get no benefits. On top of that they treat you horribly at all levels. Their bureaucracy is from the worst I have seen. Other countries at least give you health insurance and other benefits. Doesn’t sound like a good deal.
Italy still has the 70-90% tax reduction plan.
if I am eligible for a Digital Nomad visa (in any EU countries). After living there a few years Can I apply for a Permanent residence there in Greece/ Italy/ Spain leading to Citizenship ???
Lower tax on europe my ass
❤
Have no criminal record in Spain and in the country/ies where they have resided for the five years prior to the application <- the Criminal Record requirement.
AFAIK this special regime is not effective for digital nomads yet.
Do you know how this works for citizens with dual nationality? I have both British and German passports. Would I still be able to apply for the visa using my British citizenship?
HI! thanks for your videos!! As I see its 24% not 15%. Did it change ?
So if you're self employed as a true digital nomad (e.g. free lancer), this visa still works? The wording was a bit confusing.
Sweet! Now I have to decide between Spain and Buenos Aires in a couple of years.
About taxes, is it 15% or 24% of income :)) is not clear.
as well for first 6's month should i pay something or not
Hello I have 2 business with Amazon FBA and CPA marketing and I'm interested to move in spain. I live currently in france. Is the digital nomad visa can be applied if you are the owner of a business and live in spain ?
Comparing to Mexico and Malaysia's digital nomad visas with zero taxes, Spanish one with a 15% tax rate isn't worth considering at all.
Great content as always, Michael. But I noticed that you have not responded to any of the commenters asking you to clarify the 15% vs 24% tax question. This seems a rather important detail. Would you elaborate here for the benefit of all of us who are interested?
With this nomade visa can dependent/ applicant do any part time job with their freelance work
Hi Michael, can Indians also apply for this visa?
So if I work remotely for a company in California, I am ONLY paying the 15% taxes in Spain, and NOT the California local taxes and federal taxes? I want to make sure that I'm not paying that 15% on TOP of what we're paying in the states.
Can someone explain the requirement under Spanish law pertaining to the digital nomad visa in regard to the social security certificate? I work remotely for a US-based company. I had a free consultation with an attorney in Spain. They informed me that my employer has to register with the social security offices in Spain and that the US Social Security office has to provide a certificate to the SS office in Spain. Does that sound correct? This information is mostly omitted from other videos or information I have seen online. Any clarification is appreciated.
I would like to hear more about Spain and tax on retirement assets. I’ve heard they tax on the total 401k assets even if not pulled out for yearly spending. Is there an age before that applies?
Hi there . Any update on this now its up and running ? particularly if its possible to pay 15% tax on uk investment income from property and what about capital gains tax under this ? thanks
Great video. Would individuals that are day traders that work for themselves qualify for a nomad visa? Also what about self-employed internet marketers? Thanks for any thoughts!
Im Spanish . Spain is turning into Venezuela, argentina , cuba ..lot of thieves …I mean, government stela you, people aorund you steal you … and inmigrants from Morocco and Africa … too bad, can’t wait to move to Dubai . I want to feel safe and to think only in improve my life. Right now i just can think in how to pay more and more taxes everyday.. politic as are crazy !! And they fine you for everything! Forget Spain,. If you are a foreigner they will tray to take advantage of you ! Be aware with your money , people is hungry !
Im looking at lessening our tax burden. Currently we're UK citizens with a UK LTD but we earn money entirely online so can go anywhere. It seems most of these tax friendly places require 'foreign money' which would be us paying ourselves from the UK LTD right?
But this has led me to wonder what the point is in having a UK LTD at all. Unless im being stupid, wouldn't it be better to just open an Estonian LTD? Cheaper corp tax, easy regime and still enables me to pay myself foreign money if we live in somewhere like Spain? If there is no benefit to UK LTD, then what's the point in it even existing in my setup…
I am EU citizen and Canadian citizen could I use CAD passport to apply?
I like to watch your contents but I can only understand initial portions of your sentences as you tend to mumble and lower your voice whenever you're wrapping up the sentences. You have an International audience so please enunciate "every single word" and make the pace and volume consistent throughout. Great example of speaker is "Traveling with Kristin". I hope we can see you enunciate all the words next time as you have interesting topics. Thank you
Best Channel for company set up and residency ever
It’s 24% where did you get 15% ?