Digital Nomad Visa in Spain and the “Beckham” Regime: How the Tax Benefits Work

Spain has carved out a place among the favorite destinations for remote workers: great weather, good connectivity, reasonable living costs and, for a few years now, a visa designed specifically for them. On top of that, those who settle in Spain with this visa can opt for a very favorable tax regime, popularly known as the “Beckham law”. This guide explains how both work, starting from scratch.

The digital nomad visa: what it is and what it requires

The international teleworking visa, or “digital nomad visa”, was created by the so-called Startups Law (Law 28/2022, on the promotion of the start-up ecosystem). It allows you to live in Spain while working remotely for companies based outside the country, or as a freelancer whose clients are mostly foreign.

In short, the main requirements are:

• Genuine remote work: being able to do your job entirely remotely, with a prior employment or professional relationship that you can document with the foreign company or clients.
• Qualifications: a university degree or a vocational qualification from a reputable institution, or a demonstrable minimum of professional experience (the regulation specifies several years).
• Cap on Spanish income: most of your income must come from abroad. A minority share of work for Spanish companies is allowed, up to a percentage ceiling set by law.
• Usual paperwork: a criminal record certificate, health insurance and sufficient financial means.

The initial permit is granted for a period of several years and can be renewed. Over time it can lead to long-term residence. Deadlines and minimum income thresholds are updated, so always check the official website of the consulate or the Spanish authorities before applying.

The “Beckham” regime: being taxed as a non-resident while living in Spain

You are a tax resident in Spain if you spend more than 183 days a year in the country or if your center of economic interests is here. Residents pay IRPF (Impuesto sobre la Renta de las Personas Físicas, the personal income tax) on their worldwide income, at progressive rates that can be high.

The special regime for posted workers (article 93 of the IRPF law, the “Beckham law”) is an alternative. If you opt for it:

• You pay a flat rate on employment income earned in Spain, with a higher rate applying to the highest bands.
• As a general rule, you are taxed only on Spanish-source income, just like a non-resident. Many foreign income streams, such as certain dividends or interest from abroad, fall outside Spanish IRPF.
• You can keep it for several consecutive tax years, provided you continue to meet the conditions.

The Startups Law extended it: holders of the digital nomad visa can now opt for it, and the period of prior non-residence in Spain required to qualify was shortened.

The application is filed with the AEAT (Agencia Estatal de Administración Tributaria, the Spanish tax authority) using a specific form (form 149) and within a limited window after registering with Social Security. Missing that deadline can cost you the option.

Remote work for a foreign employer: what you need to be clear on

A common mistake is to assume that if your employer is abroad, your work isn’t taxed in Spain. It is: work physically performed on Spanish territory is considered Spanish-source, even if the company pays from another country. So under this regime, a nomad’s salary is indeed taxed here, but at the special rate rather than the general scale.

There are other practical matters that are often overlooked:

• NIE: the Número de Identidad de Extranjero (foreigner identification number), essential for almost any tax or banking procedure.
• Social Security: employees must be covered, either through a certificate from their home country where a treaty applies, or by registering in Spain. If you are self-employed, you will register under the RETA (Régimen Especial de Trabajadores Autónomos, the special regime for the self-employed), with a monthly contribution.
• Double taxation treaties: they prevent you from paying twice on the same income, but they must be applied correctly and there may be obligations in your home country.
• Freelancers: if you invoice clients from Spain, you must also consider VAT and periodic tax returns, whose application depends on the type of client and where they are located.

Also, the regime is neither automatic nor right for every profile: depending on how your income is received and your personal situation, it can be advantageous, neutral or even counterproductive. It’s worth running the numbers before you decide.

How we help at Zythos Business

At Zythos Business we support freelancers, small businesses and international professionals with what comes after the visa: deciding whether the special regime is worth it, setting up as a self-employed worker or a company, and filing every return with the AEAT on time. If you are thinking of moving to Spain, or you already live here and have questions, a timely review of your case usually saves you surprises and money.