El Relocator project has prepared a knowledge base, after studying which you can obtain a Nomad residence permit on your own!
This is a residence permit in Spain that is issued for 3 years, with the possibility of one renewal for 2 years and then obtaining permanent residence and even Spanish citizenship.* In Spanish, it is called “Teletrabajador de carácter Internacional”.
The advantages of this residence permit:
A number of Spanish consulates accept documents for a Digital Nomad visa for 1 year, followed by a residence permit for 3 years. However, so far the most common application option is directly for a residence permit directly from Spain. The next guide will focus specifically on a residence permit.
Below are the main points to pay attention to. The «documents» section contains comments on individual documents, which should also be studied before submitting.
There are many different taxes in Spain, but generally, a Digital Nomad will deal with the following: Personal income tax, social insurance, VAT.
PERSONAL INCOME TAX: Applicable to all nomads
Social security: Applicable to nomads with Autónomo status (sole proprietors, Self-employed people who are not covered by their country's social security certificate.)
VAT: In some cases, it is applicable to nomads who do business in the EU.
Our team also provides individual advice and assistance in registering and selecting tax regimes.
Spain also has online accounting services for individual entrepreneurs. Among them are: xolo.io, taxdown.es, taxscouts.es, finutive.com
Let's look at each tax in more detail:
Personal income tax.
It is paid on a quarterly basis from the declared annual income.
A digital nomad needs to choose one of the personal income tax modes:
(Ley del IRPF en su Artículo 93)
The tax is levied on all income earned in Spain, as well as income from work and professional activity earned abroad. Deductions and IDNs do not apply in this mode.
Up to 600,000 EUR per year: 24%
From 600,000 EUR per year: 47%
Example:
Dmitry has the following annual income:
Calculating how much Dmitry will pay in Beckham mode:
(60,000 + 40,000) * 24% = 24,000 EUR
Dmitry's other income will not be taken into account.
Dmitry will have to pay 24,000 EUR in total for 1 calendar year.
A progressive scale applies to income for 1 calendar year, from any source around the world.
All income and property around the world are declared: real estate (according to cadastral value), bank accounts, savings...
Common mode has 2 subtypes:
Standard (Base General) - you have to pay on basic income (salary, renting an apartment, income from contracts, etc.)
Amounts per year:
Up to 12450 euros - 19%
12450.01 - 20200 - 24%
20200.01 - 35200 - 30%
35200.01 - 60,000 - 37%
60,000.01 - 300000 - 45%
300,000,01 - infinity - 47%
“Savings” (Base de Ahorro) - This includes profits from deposits, shares, bank accounts, crypto, dividends, proceeds from the sale of an apartment...
Amounts per year:
Up to 6000 - 19%
6000 - 49999 - 21%
50,000 - 199999 - 23%
200000 - infinity - 27%
To calculate the total tax amount, you need to determine the income within each of these ranges and apply the corresponding rate. Then, all the values obtained should be added up, and the result will be the total amount of income tax.
It should also be noted that taxes may vary in different autonomous regions of Spain, as they have the right to set their own tax rates and benefits.
Currently, the autonomous regions of Madrid and Castilla y León are the most effective in terms of personal income tax, as they have the lowest tax scale and Catalonia is the most expensive, with the highest rates in Spain.
Under the general regime, it is also possible to use various tax deductions and Double Taxation Agreements.
What tax deductions can be made?
(Vary depending on the autonomous region)
Base General has the following:
Example:
(The calculation is for general cases and does not take into account possible regional and special deductions).
Anton works for a Russian company and earns a pre-tax salary of €5,000 per month.
At the same time, he has cryptocurrencies, a couple of deposits, and a stake in a small LLC. Anton still has an apartment in Moscow, which he has been renting out since 2014 for €550 a month, and a car he sold in December 2022.
In March 2022, Anton received a residence permit in Spain and is now thinking about how to pay taxes for 2022.
Annual salary: 5000x12 = 60000. Rent: 550x12 = 6600
Deductions: 13% of personal income tax with salary that Anton will pay in Russia.
Total: 66600 - 7800 = 58000
Anton will pay 2,365 of the first 12,450 euros. Of the next 7,750, he will pay 1,860. Out of the next 15,000, he'll pay 4,500. Of the remaining 22,800, he will pay 8,436.
Thus, Anton will pay 17,161 euros out of his income of 58,000 euros. This is an average = 29%.
But don't forget that Anton also has savings, deposits, etc. Of all this, he made a total annual profit of 37,000 euros.
He managed to sell his car for 15,000 euros, but it doesn't need to be declared as he did not make a profit.
Of these 37,000 euros, tax will have to be paid as follows:
From the first 6,000 euros - 1,140 euros. Of the following 31.000 euros, 6,510 euros.
Thus, Anton will pay 7,650 euros out of his passive income of 37,000 euros. That is, on average = 20.6%.
Since the Russian Federation and Spain are still using Double Taxation Agreement (for the 2022 reporting year for sure, the information will be available in 2023 closer to the end of the year), it is possible to deduct part of the taxes paid in the Russian Federation from the tax in Spain.
****The income from the individual entrepreneurship simplified tax system cannot be offset, since the simplified tax system does not apply to the Double Taxation Agreement, as well as to self-employment.
Insurance contributions to the Spanish Social Fund (Seguridad Social) for sole proprietors, Self-employed or Freelancers.
If you are obtaining a Nomad Visa as Autónomo (Individual Entrepreneur, Self-Employed, Freelancer) and are not covered by your country's social security certificate, then you need stand up register with Spanish Social Security and pay monthly contributions there depending on your monthly income:
For the first year, there is a reduced rate of 80 euros/month
There is a convenient calculator for calculating contributions.
The amount of contributions paid can then be deducted from the general personal income tax base if you are on a general basis.
VAT (Value Added Tax) in Spain is called Impuesto sobre el Valor Añadido (IVA). This is an indirect tax that is levied on the sale of goods and services at every stage of the production and distribution chain.
**Only applies if you run your own business and/or sell your services.
In Spain, there is a standard VAT of 21% and a reduced 10% or 4%. **Reduced is used for food, books, public transport...
IN GENERAL:
If you are registered as Autónomo in Spain and do business with customers from the EU or Spain, you will be required to issue VAT invoices to your customers at a rate of 21%.
If your customers are outside the EU, the services provided will be considered exports and you will not have to charge them VAT (as they will be exempt).
Since all situations are individual and there may be exceptions everywhere, we strongly recommend that you consult a tax lawyer about your case!
Obtaining and working with certain documents often raises questions. Here we have collected and updated explanations of all things that cause controversy.
If you're hired:
Ask your company to compose this letter on letterhead, stamped and signed.
Sample text:
This certificate confirms that the FULL NAME working for the company NAME in the position JOB TITLE from DATE has the right to perform his duties remotely using digital communication tools and without being at the company's place of registration in the COUNTRY.
The employee's duties include: LIST.
The monthly salary of a FULL NAME before taxes is??? , or Euro/month at the exchange rate of the Central Bank as of the day the letter was written. The contract with the employee is concluded until:???
The company NAME allows a FULL NAME specialist to work under this agreement while in the Kingdom of Spain.
If you are an individual entrepreneur:
Ask your counterparty, whose contract meets the visa requirements, to compose this letter on letterhead, stamped and signed.
Sample text:
This certificate confirms that an Individual Entrepreneur, FUL NAME, with whom an agreement was concluded on DATE, has the right to perform the services specified under this agreement (SPECIFY SERVICES) remotely, using digital communication tools and without being at the place of registration of the company in the COUNTRY.
The monetary reward under this contract, before taxes, is??? , or Euro/month at the exchange rate of the Central Bank as of the day the letter was written.
The contract with the counterparty was concluded before:???
The company NAME allows a FULL NAME specialist to work under this agreement while in the Kingdom of Spain.
Fill in this document in Latin letters and sign it. (You state in Spanish that you have not broken the law in the past 5 years)
Declaration of no criminal record
Field interpretation:
Nombre y apellidos: Full name
Nacionalidad: Citizenship
Fecha de nacimiento: Date of birth
DNI/NIE/Pasaporte: Passport number
Domicilio: Address in Spain (street, house, apartment)
C.P.: Postcode
Localidad: City/Village
Provincia: Province (e.g. Girona)
/Text block/
En (name of the city where you are currently) a (number) de (month) de (year)
Firma:/applicant's signature/
In order to pay the digital nomad's residence permit fee, you need to go to link and log in via DIGITAL SIGNATURE:
If you pay for yourself, fill in the data like this:
If you pay for another person, fill it out like this:
After filling in, click on the “Imprimir tasa” button at the end of the page and download the finished payment document. You can pay the fee in cash at a bank or ATM. The fee is 73.26 euros.
A separate fee is required for each family member!
Do not forget to take a proof of payment; it must be attached to the application for a residence permit.
If you are employed by a company from the Russian Federation, you need to take a document called the “Departure Certificate” from the Social Fund of Russia. It usually has this format, but there may be minor variations, depending on your territorial Social Fund of Russia.
If you are an individual entrepreneur or self-employed - you don't have to take this document, by making a commitment register with Spanish Social Security and pay insurance premiums to it. (The first year — 80 euros/month, from the second year — about 270 euros/month. The exceptions are Madrid, Galicia, Andalusia, the Canaries, the Balearic Islands, Castilla la Mancha, where you don't have to pay for social security for the first year.)
An employee should contact the Social Fund of Russia authority at the place of registration of the employer. Without this certificate, a nomad cannot be hired.
The individual entrepreneur applies to the Social Fund of Russia authority to which it is attached.
You need to bring your passport, a certificate of employment, and a copy of the employment contract.For individual entrepreneurs - copies of documents for registering an individual entrepreneur and registering in the Pension Fund of the Russian Federation
Note: Some Social Fund of Russia offices now issue this certificate only if you give them an order to send you on a business trip. Entrepreneurs can write such an order for themselves. The certificate itself should not include the names of Spanish companies. Such a certificate will be refused.
Departure certificate
Social security sample for sole proprietors
UPD departure certificate
(Some branches use the old form, and some use the new form).
Download this document, fill in the details and sign it.
Spanish Social Security Application
The visa process consists of the following steps. Some of them can run in parallel:
If you are a sole trader in one of the countries that have a social security mutual recognition agreement with Spain, * you can choose between two options.
Variant 1 (hiring, individual entrepreneur): Provide Spain with a certificate that you are covered by social security in your country (departure certificate) + buy private health insurance in Spain. (Travel insurance or Schengen visas are not suitable. You need insurance from one of the Spanish insurance companies. For example Adeslas, Sanitas, DKV...)
Pros: Private insurance can be serviced in large private hospitals and medical centers.
This is cheaper than paying social security, as the average cost of private insurance with full coverage is 60 euros/month, and the social security contribution is 300 euros/month, starting from the second year (the first year is 80 euro/month)
Variant 2 (for individual entrepreneurs, self-employed, freelancers): Register with the Spanish social security system (after obtaining a nomad residence permit). In this case, you do not need to purchase private health insurance. Also, this option does not require a departure certificate.
Pros: In addition to access to public hospitals, you have accumulated retirement experience and the opportunity to receive various state benefits (for childcare, for example).
For a family of three or more people, this option will be comparable or even cheaper than private insurance, since the total cost of private insurance for a family with young children will be approximately 250 euros/month
If the country in which you are registered as an individual entrepreneur does not have an agreement with Spain on the mutual recognition of social security, then you will need to register with the Spanish social security system (after obtaining a nomad residence permit). In this case, you do not need to purchase private health insurance.
What should I do if I am employed in a country where there is no social security agreement?
Revise your sole proprietor/freelance agreement, wait 3 months, promise to register with Spanish social security and pay for it yourself.
*Countries with which Spain has an agreement on the mutual recognition of social security: EU+ Andorra, Argentina, Australia, Brazil, Cape Verde, Canada, Chile, China, Colombia, South Korea, Ecuador, USA, Philippines, Japan, Morocco, Mexico, Paraguay, Peru, Dominican Republic, Russia, Senegal.
At the same time, to date, a number of EU countries (A1 certificate), the Russian Federation and the UK continue to issue valid certificates.
No, all documents except bank statements must be translated into Spanish. Although some documents can be translated using an online translator, we recommend consulting a qualified translator to verify that the text is correct.
The minimum for renewing a residence permit is 183 days every year.
To obtain a permanent residence permit — 10 months every year for 5 years.
10 years to obtain citizenship.
Yes, because a residence permit de facto makes you a tax resident in Spain due to the minimum period of stay required to renew it. Depending on your situation, you can choose between a progressive or a fixed tax scale. The fixed scale is 24% of personal income tax on your worldwide employment income. The double taxation agreement does not apply.
The progressive scale varies from 19 to 47% (it works like a “ladder”), but there is a law on avoidance of double taxation, and various tax deductions are available (for example, per child).
The initial list of documents does not include such requirements, but the migration service may request this information at its discretion.
No, there is no such requirement. Moreover, if you are going to live in Madrid or Barcelona, you don't even need to register at your place of residence.
No, all documents are submitted online using digital signature. You need to come in person after the application is approved to submit fingerprints to a plastic ID card. The card itself will be available for collection about a month after the fingerprints are submitted.
Yes, this is not prohibited, as you are legally in Spain.
At the initial stage of submitting documents, registration is not required. But, if approved, it will be needed to submit fingerprints and make a plastic ID.
A residence permit is not required only if you are applying in Madrid or Barcelona and the addresses on the original application form and on the fingerprint form match.
Yes — if you are applying as an individual entrepreneur, but the percentage of revenue from a Spanish employer should not exceed 20% of your total salary.No — if you are applying as an employee.
Yes. In this case, your spouse and minor children will receive a full residence permit in Spain. A spouse even with the right to a full-time job.
Yes, you can leave the first two pages and the last pages stamped and apostilled.
Yes, if there is official confirmation, this way you can offset up to 30% of the income.
No, this is not a refusal, but in this case it is necessary to submit an application for approval through the UGE portal under “silencio dministrativo” — silence on the part of the administration. The application can be in free form in Spanish.
If the refusal is for a formal reason, you have 30 days to file an appeal. The appeal is also filed through the UGE portal.
You can contact our expert @EL_POMOGATOR for advice on this issue.
In this case, you can show Spaniards that you have at least 24,000 euros in savings. The funds must be in the main applicant's account.
Cryptocurrency payments are risky because crypto is not a means of payment in Spain. If you are unable to change your payment type to dollars or euros, you should try to explain to the Spaniards as clearly as possible how you receive money and how you withdraw it to regular payment cards.
The same applies to applicants who work through services like Deel.
When serving from Spain, you can. To do this, you will need to pre-register ”civil marriage” at a local notary. It's called ”Pareja de hecho”. When applying through a consulate, only an official marriage is suitable.
Yes, you can, as this program does not have a minimum requirement for the duration of the Schengen or Schengen period.
No, any activity that can be done remotely is suitable. The only thing is that if you are a doctor or lawyer, the Spaniards will ask you to homologate your diploma, as this is a regulated profession. At the same time, a lawyer who does not practice law fits into a nomad.
In this case, you will need to legalize documents at the Spanish consulate in the country that issued the document. A list of countries that do not issue apostille is available here.
Officials accept electronic documents to apply for a residence permit. For example, an electronic employment record book from public services or a bank statement.
Yes, there is an 85% probability that it will be requested.
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