How to optimise taxes with the Spain Digital Nomad Visa

The Spanish Digital Nomad Visa is designed for remote workers. This includes employees of foreign companies and self-employed professionals, such as freelancers and sole proprietors.

You must work mostly for clients or companies outside of Spain. If you’re self-employed, you can still have Spanish clients — as long as that income makes up no more than 20% of your total earnings.

To qualify for the Spain Digital Nomad visa, you must:

1. Be a non-EU and non EEA-citizen.

2. Earn at least €2,762 per month.

3. Be a qualified professional — either with a university degree or at least 3 years of relevant experience.

4. Have worked with non-Spanish companies for at least 3 months before applying.

5. Have housing in Spain — rented or owned, with no price minimum.

6. Have a clean criminal record.

If you’re employed by a company, it must have been operating for at least 1 year before you apply.

Close family members can be added to the application. This includes:

• spouses in an officially registered marriage;

• children — if over 18, they must be unmarried, enrolled in university, and financially dependent;

• parents and grandparents, if they rely on you financially;

• siblings, if they are also financially dependent on you.

For each additional person included in the application, the required monthly income of €2,762 increases as follows: €1,035 for each adult and €346 for each child under 18.

Tax residency. If you spend more than 183 days in Spain in a calendar year, you’re considered a tax resident. This means you must pay Spanish tax on all your worldwide income, not just what you earn from remote work.

If you stay fewer than 183 days, you’re usually classed as a non-resident. Non-residents only pay tax on income earned from Spanish sources.

But there’s a catch: Spain may treat your income as Spanish-sourced if the work is physically carried out while you’re in the country. So even as a non-resident, any part of your income linked to work done inside Spain — such as the remote work declared for your Digital Nomad Visa — might be taxed under non-resident tax rules.

Albert Ioffe,

Legal and Compliance Officer, certified CAMS specialist

In theory, you don’t need to live in Spain full-time or become a tax resident to hold a Digital Nomad Visa. The Spanish Supreme Court has removed the rule that required digital nomads and other temporary residents to stay in Spain for more than 6 months each year. As a result, there is currently no official minimum stay requirement.

In practice, however, immigration offices still often ask for proof that you’ve been living in Spain when you apply to renew your visa. That’s why we recommend keeping your time outside Spain to less than 6 months per year, just to be safe.

Beckham Law. Spain has a special tax regime for foreign workers called the Beckham Law. It allows qualifying remote employees to pay a flat tax rate of 24% on income, instead of Spain’s usual progressive rates of 19 to 47%.

To qualify, you must have an employment contract with a company from outside Spain. Self-employed digital nomads and sole proprietors are not eligible.

Immigrant Invest can connect you with certified tax advisors who’ll guide you through the application process.

Double taxation treaties. Spain has agreements with about 90 countries, including the UK and US, to avoid double taxation. These treaties help make sure you’re not taxed twice on the same income — once in Spain and once in your home country.

Personal income tax. If you’re a tax resident in Spain, you’ll need to pay personal income tax on your earnings. This tax is split into two types:

1. General income — this covers salaries, rental income, and similar earnings.

2. Savings income — this includes dividends, interest, and capital gains.

General income is taxed on a progressive scale, meaning different portions of your income are taxed at different rates. Here’s how it breaks down:

• up to €12,450 — 19%;

• €12,451 to 20,200 — 24%;

• €20,201 to 35,200 — 30%;

• €35,201 to 60,000 — 37%;

• €60,001 to 300,000 — 45%

• over €300,000 — 47%.

If you earn at least €2,762 a month, or €33,144 per year, you’d pay around €8,108 in income tax. Each portion of your income is taxed at its own rate, and the minimum effective tax rate for digital nomads is about 24.5%.

You can reduce your taxable income with certain deductions. These may include social security contributions, charitable donations and work-related expenses. After applying these deductions, your tax is calculated based on the remaining amount.

If you earn money from savings — like dividends or investment gains — those are taxed separately, also using progressive rates:

• up to €6,000 — 19%;

• €6,001 to 50,000 — 21%;

• €50,001 to 200,000 — 23%;

• €200,001 to 300,000 — 27%;

• over €300,000 — 28%.

If you’re not a tax resident, you pay flat rates: 24% on general income and 19% on savings income. These same flat rates apply if you’re a digital nomad who qualifies for Spain’s Beckham Law — a special tax regime for foreign workers.

Social contributions. Paying into the Spanish social security system is mandatory for digital nomads living and working in Spain.

If you’re working remotely for a foreign employer, the company must usually register with the Spanish Social Security system and pay monthly contributions on your behalf. These contributions are typically between €500 and €600 per employee.

If your employer is based in a country that has a social security agreement with Spain, they may be exempt from registering. Countries with such agreements include the United States, Canada, Australia and China. The UK, however, does not currently have an agreement with Spain.

Albert Ioffe,

Legal and Compliance Officer, certified CAMS specialist

If your home country has a bilateral agreement with Spain, you may not need to register with the Spanish system. Instead, your country’s social security office can issue a certificate of coverage. This document proves you’re still insured at home while living in Spain.

However, not all countries actually issue these certificates, even if an agreement exists. We provide our clients with licensed tax advisors who help them address this issue in advance.

If you work as a freelancer or sole proprietor, you must register with RETA — the Spanish self-employed social security scheme. Your monthly contributions depend on how much you earn. 

The system is divided into 15 income brackets, and based on your income, you’ll be assigned a range. Within that range, you can choose a base amount on which your contributions are calculated. The standard contribution rate is 31.4% of your chosen income base.

Spain Digital Nomad Visa holders usually fall into the five highest income brackets. Depending on their earnings, they can choose a contribution base between €1,437.91 and €4,909.50. 

If you earn at least €2,762 per month and select the minimum base available to you — €1,437.91 — your monthly social security payment would be 31.4% of that amount, or around €452.

Value-added tax. If you’re a digital nomad offering goods or services in Spain, you may need to pay value-added tax, VAT. The standard VAT rate is 21%, but some goods and services qualify for reduced rates of 10% or 4%.

If you’re based in the Canary Islands, a different tax applies. It’s called the Canary Island General Indirect Tax, IGIC, and the standard rate is 7%, instead of VAT.

Property taxes. If you own property in Spain, you must pay a yearly property tax. The amount depends on three main factors: the cadastral value, which is the official property valuation, the type of property, whether it is urban or rural, and the local municipality where the property is located.

Rates vary by region, but typically fall within the following ranges:

• urban property — 0.4 to 1.1%;

• rural property — 0.3 to 0.9%.

When you buy a property in Spain, the taxes you pay depend on whether it’s new or resale. New properties are subject to 10% VAT, plus a stamp duty of 0.5% to 1.5%. Resale properties are not subject to VAT, but instead incur a 6% transfer tax.

The Beckham Law — named after football star David Beckham — is a special tax scheme designed to attract foreign professionals to Spain. It’s available to Digital Nomad Visa holders and can help you significantly cut your taxes for a limited time.

Regulations. Here’s how the Beckham Law works:

1. Instead of paying Spain’s regular progressive income tax, which can go up to 47%, you pay a flat rate of 24% on income earned in Spain — up to €600,000 per year. If you earn more than €600,000, the amount above that limit is taxed at 47%.

2. Income earned outside Spain is exempt from Spanish tax. That means you’re only taxed on income considered Spanish-sourced — such as your salary from a foreign employer if the work is done while you’re physically in Spain.

3. Foreign assets are not taxed under this regime. This includes dividends and other income from owning shares in a company, interest and earnings from lending your own money to others through loans or credits, and capital gains made from selling assets such as real estate or personal property.

Duration. You can enjoy this special tax treatment for up to 6 tax years. After that, you’ll switch to Spain’s regular tax system.

Eligibility. To qualify for the Beckham Law, you must:

• have not been a Spanish tax resident in the past 5 years;

• move to Spain for work purposes;

• have a job contract with a foreign employer — freelancers and self-employed individuals are not eligible.

Your spouse and children under 25 can also take advantage of the regime, as long as they didn’t become tax residents in Spain before you, meet similar eligibility requirements, and their annual income is lower than yours during the period the regime applies.

Important forms. When paying taxes in Spain, digital nomads need to complete specific forms. The most important include:

1. Modelo 030 — used to register with the Spanish tax authorities or update your personal tax information.

2. Modelo 100 — the main annual income tax return for residents.

3. Modelo 210 — for non-residents declaring Spanish-sourced income.

4. Modelo 036 — used to register as self-employed or for VAT purposes.

5. Modelo 130 — quarterly tax return for autónomos to pay personal income tax in advance.

6. Modelo 303 — quarterly VAT declaration for self-employed workers.

7. Modelo 149 — used to apply for the special expat tax regime, commonly known as the Beckham Law.

Deadlines. If you’re a digital nomad in Spain, you must file a personal income tax return every year. The usual filing period is from early April to the end of June, covering the previous tax year. The exact dates may change slightly each year and are set by the Spanish authorities.

If you’re self-employed, you must also file quarterly tax returns in April, July, October, and January of the following year. VAT payments follow the same quarterly schedule.

The property tax is paid once a year, but the deadline varies by municipality. It usually falls between April and October.

Social security contributions are paid monthly, based on your chosen contribution base.

Documents. To pay your taxes correctly, you must submit the right tax forms along with documents that show your income. Here’s what you’ll typically need:

• for employees — a Certificado de retenciones from each employer, showing your gross pay and tax withholdings;

• for self-employed — copies of all issued invoices and proof of expenses;

• for rental income — valid rental contracts;

• for capital gains, dividends, or interest — bank or broker certificates, trade confirmations, or property deeds, depending on the income source.

Ways to pay taxes. Most people pay their taxes online through the Agencia Tributaria website. The most common payment methods are:

1. Direct debit — funds are automatically withdrawn from your Spanish bank account on the due date.

2. NRC Payment Code — generated by your bank online or at a branch.

3. Online card payment.

4. Bank transfer — usually used if you’re living abroad.

You can also pay taxes in person at a participating bank branch.

Step-by-step process. Registering with the Tax Agency and submitting your tax return usually takes less than an hour — if you already have all the documents and tools in place. However, getting your NIE  — Foreigner’s Identification Number — can take up to a month, as you must book an appointment at a Spanish police station or consulate.

Here’s what the full process looks like:

1. Get your NIE.

2. File Modelo 030 to register with the Tax Agency using your name, NIE, and fiscal address.

3. Get a digital certificate or register with Cl@ve to access online tax services.

4. Find out which taxes apply to your situation.

5. Collect the documents that prove your income.

6. Log in to the Agencia Tributaria with your certificate or Cl@ve.

7. Fill out the correct tax form, check any pre-filled details, add your totals, and validate.

8. Choose your payment method and complete the transaction.

Once your payment is complete, download and save the filing receipt and record the NRC code or debit confirmation. Keep all supporting documents for at least 4 years, in case of a tax audit.

1. Remote workers employed by foreign companies and self-employed individuals with a monthly income of at least €2,762 can obtain the Digital Nomad Visa in Spain.

2. If you spend more than 183 days a year in Spain, you’re considered a tax resident and must pay tax on your worldwide income.

3. As a tax resident, you’ll pay income tax at progressive rates ranging from 19 to 47%, depending on how much you earn.

4. Eligible digital nomads can apply for the Beckham Law, which offers a flat tax rate of 24% on Spanish income — a major saving compared to standard rates.

5. In addition to personal income tax, digital nomads pay social security contributions. 

6. Taxes are usually filed and paid online through the Spanish Tax Agency website.