Nomads in Spain: Eligibility and Tax Benefits
Tax for Digital Nomads: The foremost query digital nomads ponder before relocating to Spain is: what will be my tax situation if I choose to work remotely from Barcelona or any city in Spain? In this article, we aim to address this concern, highlighting the new advantages that make it enticing to work remotely in Spain.
Since the introduction of the digital nomad visa, the Spanish government has also ratified several tax benefits to encourage the influx of new Social Security and Tax contributors. This special tax regime for non-residents is commonly known as the Beckham regime, named after the football player who arrived at Real Madrid Football Club. Originating in 2005, the Beckham regime was crafted to attract foreign professionals and high-net-worth individuals to work and reside in Spain by offering them favorable tax treatment.
Who is eligible for the Beckham Law?
- New Residents: Individuals who have not been tax residents in Spain during the ten years preceding their relocation.
- Foreign Workers: Newly arrived workers and highly skilled professionals employed in Spain.
- Digital Nomad Visa holders: Employees of third-party companies who wish to relocate to Spain and continue working for their foreign employers.
What are the tax benefits of the Beckham Law for digital nomads or highly qualified individuals?
- Non-tax residency status for the applicant.
- A flat tax rate of 24% on employment income up to €600,000, and 47% thereafter.
- Exemption from wealth income, solidarity, and foreign asset taxes.
- The applicant should not have resided in Spain during the last 5 years.
- The application must be submitted within the first 6 months of arrival.
How long is this regime valid?
This regime is valid for 6 years, but it’s crucial to note that the law may alter the criteria of this regime.
Can my family apply for the Beckham Law by extension?
Yes, your spouse can apply for this favorable tax regime as long as their income is lower.
As a digital nomad visa holder in Spain, will I be paying taxes in Spain and my home country?
As a Spanish taxpayer, there are treaties between Spain and your home country to prevent double taxation. Thanks to these treaties, you will not be subject to taxes in both jurisdictions. However, tax matters can be complex, and it’s advisable to consult with an English-speaking tax lawyer. At Marfour International law firm, you can schedule a consultation with one of our double taxation lawyers. Don’t hesitate to reach out and learn how you can benefit from the Beckham Law as a digital nomad visa holder. Contact us to explore your options further.
Legal note:
“Please note that blog content may be updated over time pending changes in the law or administrative practices. We recommend seeking professional advice based on your individual circumstances.”