Digital Nomad in Spain: What taxes to pay and everything about the Visa

Are you a digital nomad in Spain? We’ll tell you everything you need to know about visas, taxes, and how to stay on top of your obligations while enjoying coliving in Barcelona or Valencia.

The life of a digital nomad sounds like a dream: working from anywhere in the world, discovering new cultures, and living in places where others can only vacation. Spain, with its perfect blend of great weather, rich culture, and mouth-watering food, is the ideal destination for many. But, as with every good adventure, some responsibilities come with the territory. In this article, we’ll break down what you need to know about taxes, the new digital nomad visa, and how to make the most of your stay in a coliving space in Barcelona or Valencia.

1. Digital Nomad Visa in Spain: Your Official Ticket to Paradise

Since 2023, Spain has launched a digital nomad visa that allows you to work and live legally in the country while enjoying the Spanish lifestyle. This visa is part of the Startup Law and is specifically designed to attract professionals who, like you, can work remotely from anywhere.

What do you need to apply?

• Proof that you work for a foreign company: Or that you are self-employed with clients outside of Spain. You cannot work for a Spanish company, although you can work for international clients while living here.
• Minimum income: You need to prove that you have enough income to support yourself in Spain, around €2,000 per month, although this figure may vary.
• Health insurance: You’ll need private health insurance to cover your stay in Spain.
• Clean criminal record: You’ll have to provide a certificate of clean criminal records from the countries you’ve lived in for the past five years.

This visa is initially valid for one year but can be renewed for up to five years. The best part? Once you have it, you can move freely within the European Union during your stay in Spain.

2. Tax Residency in Spain: Are you a tax resident or a long-term tourist?

With the visa in hand, the next thing to consider is whether you’ll become a tax resident in Spain. It’s not just about paperwork but about where you spend most of the year. If you spend more than 183 days in Spain, have your economic base here, or your family is with you, you’ll be considered a tax resident. This means you’ll need to pay taxes on all your global income, not just what you earn in Spain.

3. What taxes do you have to pay as a Digital Nomad in Spain?

Being a digital nomad and a tax resident in Spain means you’ll have several tax obligations to fulfill. Here’s a summary so you’re not caught off guard:

• Personal Income Tax (IRPF): If you’re a tax resident, IRPF will be your main obligation. This is a progressive tax, with rates ranging from 19% to 47%, depending on your income. The more you earn, the more you’ll pay. It’s important to plan your finances well to optimize your tax payments.

• Value Added Tax (IVA): If you’re self-employed and providing services to clients in Spain, you’ll need to add 21% VAT to your invoices. But if your client is in another EU country or outside of it, the rules change. In some cases, you could invoice without VAT, known as “reverse charge.”

• Non-Resident Income Tax (IRNR): If you decide not to become a tax resident but still earn money in Spain, this tax applies. The general rate is 24%, but it can be lower if you’re a resident in another EU country.

• Social Security Contributions: If you decide to register as self-employed in Spain, you’ll have to pay a monthly Social Security fee. This ensures you access to public healthcare and allows you to contribute to a pension, which is always a good safety net.

4. Brexit and double taxation agreements: Important info for brits

For British nationals, Brexit has brought significant changes to tax obligations. You no longer enjoy the tax benefits of the EU, so it’s crucial to understand how the double taxation agreement between the UK and Spain works. This agreement is designed to prevent you from paying taxes twice on the same income, but it’s essential to make sure you apply its provisions correctly.

If you’re from another country with a double taxation agreement with Spain, the rules will be similar. In any case, we recommend consulting with a tax advisor to ensure everything is in order.

5. Coliving in Spain: Live and work in a community

One of the great benefits of being a digital nomad is the flexibility to choose where to live. In Spain, coliving has become the top choice for many nomads. A coliving space not only offers you a comfortable place to stay but also connects you with a community of like-minded people.

Barcelona and Valencia are two of the most popular destinations for digital nomads, and it’s not hard to see why. With their incredible beaches, vibrant nightlife, and rich cultural scenes, these cities offer the perfect environment to work and enjoy life. But more than that, coliving allows you to build professional networks, share experiences, and create new friendships, all while living in a space designed to meet the needs of remote workers.

In a coliving space, you’ll also find it easier to manage administrative tasks, like registering with the local municipality, which is necessary for some tax obligations. Plus, many colivings offer everything you need to work comfortably: from high-speed WiFi to inspiring coworking spaces.

6. Conclusion: Work, travel, and keep your taxes in check

Being a digital nomad in Spain offers the best of both worlds: the freedom to work from anywhere and the chance to enjoy life in one of Europe’s most attractive countries. But it’s not all sunshine and tapas; you also need to fulfill your tax obligations and keep your visa in order.

Make sure you’re well-informed about the digital nomad visa and how to manage your taxes efficiently. And if you’re looking for a place to stay that understands your needs, a coliving in Barcelona or Valencia is an excellent choice. At Cotown, we offer colivings designed for digital nomads like you, with all the comforts you need to work and live to the fullest.

So, get ready to enjoy your Spanish adventure without worries! With Cotown, you’ll have the perfect place to settle, grow professionally, and stay on top of all your obligations stress-free.

If you’re looking for a coliving that fits your lifestyle, Cotown is your best choice. See you soon in Spain!