Digital Nomad Visa and the “Beckham Law” Tax Regime: A Guide for Foreigners in Spain

Spain has become one of the favorite destinations for so-called digital nomads: professionals who work remotely for companies or clients outside the country while enjoying Spain’s climate, cost of living and quality of life. Since the so-called startup law came into force (Law 28/2022, on the promotion of the startup ecosystem), there has been a specific visa for this profile, along with the option to apply for a special tax regime far more favorable than ordinary taxation. Below we explain, step by step, what each of these two mechanisms involves and how they fit together.

What Spain’s startup law requires for the digital nomad visa

The visa (or residence authorization, for those already in Spain) for international remote workers allows non-EU citizens to live in Spain while continuing to work remotely for employers or clients based outside Spanish territory. The core idea is that this activity should not compete with the local labor market: that’s why the law requires that income coming from Spanish clients or companies stay below a capped percentage of the total, so the bulk of the applicant’s work remains tied abroad. Applicants must prove a prior employment or collaboration relationship with the foreign company, professional qualification (a degree or equivalent experience) and sufficient financial means.

Before anything else, any foreigner who plans to live or carry out an economic activity in Spain needs a NIE (Foreigner Identification Number), the identifier required by the Spanish Tax Agency (AEAT, the body that administers state taxes) for any tax-related procedure. The digital nomad visa is applied for at the Spanish consulate in the applicant’s home country or, for those already in Spain under another permit, at the immigration office, and it is usually granted for an initial period that can be renewed.

The “Beckham Law” tax regime: how a digital nomad is taxed

The biggest tax draw of this visa is the option to apply for the special regime for workers posted to Spanish territory, popularly known as the “Beckham Law” (named after the footballer who was among its first beneficiaries when it was created, more than two decades ago now). Instead of being taxed under ordinary personal income tax — with progressive brackets that can run high in Spain — those who opt into this regime pay a flat rate on their Spanish-source employment income, similar to what a non-resident would pay, during the year of arrival and the following tax years in which they continue to meet the requirements.

The startup law significantly widened access to this regime: it shortened the number of prior years without Spanish tax residency that applicants must prove in order to qualify, and it expressly opened the door to profiles previously excluded, such as digital nomads themselves, startup directors, and certain highly qualified professionals providing services to emerging companies. Under certain conditions, it also allows the beneficiary’s spouse and children to apply for the same regime. It’s important to understand this is an option, not an obligation: it must be requested explicitly, and it implicitly means giving up ordinary resident taxation for as long as it lasts.

Compatibility with remote work for foreign companies

The digital nomad visa and the Beckham regime are designed to work together, but they shouldn’t be confused: one is a residence permit (governed by immigration law) and the other is a tax election (governed by personal income tax rules and administered by the AEAT). It’s entirely possible to live in Spain under the visa without meeting the tax requirements for the special regime, or vice versa in some cases. It’s also worth noting that working remotely for a foreign employer doesn’t exempt anyone from Social Security obligations: depending on whether a bilateral agreement exists with the home country, the worker may keep contributing there or may need to register in Spain — which is a separate matter from the self-employed regime (RETA), which applies to those who work on their own account rather than as an employee of a foreign company.

At Zythos Business, we help self-employed professionals and small businesses every day — including those arriving from abroad — understand exactly which tax and Social Security obligations apply to them in Spain, prepare the documentation for these special regimes, and avoid mistakes that end up being costly to fix later. If you’re considering moving to Spain on a digital nomad visa, or wondering whether the special regime is worth applying for in your case, it’s worth going through the details before taking the leap.