With the rise of remote work and digital nomadism, many countries are now offering visas tailored for this lifestyle. One of the latest countries to join this trend is Spain, which recently announced its plans to introduce a Digital Nomad Visa. This visa will allow remote workers to live and work in Spain while enjoying all the benefits of the country’s beautiful landscape, rich culture, and delicious cuisine. However, like any visa, there are certain taxes that digital nomads will have to pay while living in Spain.
First and foremost, digital nomads on the Spain Digital Nomad Visa will be subject to income tax on their worldwide income. This means that any income earned from sources both within and outside of Spain will be subject to taxation. The rate of income tax in Spain varies depending on the individual’s income level, with rates ranging from 19% to 47%. It’s important for digital nomads to keep detailed records of their income and expenses to ensure compliance with Spanish tax laws.
In addition to income tax, digital nomads may also be subject to taxation on their savings and investments. Spain imposes a tax on savings and investment income, which includes interest, dividends, and capital gains. The tax rate for savings and investment income also varies depending on the amount of income and can range from 19% to 26%.
Furthermore, digital nomads residing in Spain may also be required to pay social security contributions. The Spanish social security system provides benefits such as healthcare, unemployment benefits, and pensions, and individuals who work in Spain are normally required to contribute to this system. These contributions are typically withheld from the individual’s salary and matched by their employer.
It’s important for digital nomads considering the Spain Digital Nomad Visa to fully understand the tax implications of living and working in Spain. Seeking professional advice from a tax expert or accountant is highly recommended to ensure compliance with Spanish tax laws and to optimize tax planning strategies.
Overall, while living in Spain on the Digital Nomad Visa can offer an incredible opportunity to experience the vibrant culture and lifestyle of the country, it’s important for digital nomads to be aware of their tax obligations. By understanding and planning for the taxes they will need to pay, digital nomads can make the most of their time in Spain while remaining financially responsible.
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Megh on November 26, 2023 at 4:01 pm
I would love a video explaining how you handle taxes. Do you have an accountant in Spain that you use and recommend? Do you also have to file in the USA (if so how do you handle that)? Do you use any specific software?
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Xr1st0s on November 26, 2023 at 4:01 pm
Very useful, thank you
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Shannon on November 26, 2023 at 4:01 pm
I am so grateful for this video – THANK YOU for shedding light on this frustratingly vague topic; after months of fruitless searches providing the same unhelpful data, your straightforwardness with examples was a huge breath of fresh air!
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Emily on November 26, 2023 at 4:01 pm
Aw TAWN no mo is the pronunciation for Autonomo. Thank you for the info. What's the difference between being freelance and someone who works for a US company but lives in Spain?
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Austin Smith on November 26, 2023 at 4:01 pm
Thanks for the great info! Christina, do you what taxes you are going to have to pay in the US? I believe you get a credit for income taxes, but wondering if we will have to pay social security taxes in both countries?
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Asad Iqbal on November 26, 2023 at 4:01 pm
Best update.
Please guide me. I'm working as a freelancer over the Upwork as well as I've clients in USA. I'm working remotely from Pakistan. Is it possible I can get Digital Nomad Visa as I don't have any clients and work in Spain and other EU countries. Please guide me. ThanksReply
Alexander Miller on November 26, 2023 at 4:01 pm
I am looking at the digital nomad visa. Can this be advantageous for a UK LTD company director?
I am also a owner and shareholder (50% with significant control) of the company that will employ me.
Will I get tax advantages?I am unsure of the double tax treaty between UK and Spain.
At the moment I pay myself mainly dividends.However, If I took my income 100% as salary, would I pay 24% tax only, or because the source of income is UK, will I also owe tax in UK?
What would be the most tax efficient option for UK Ltd director / shareholder?
Thanks!
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Scott Morris on November 26, 2023 at 4:01 pm
What about your US Taxes, can you write them off the Spanish ones or visa-versa?
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J R on November 26, 2023 at 4:01 pm
I wouldn’t touch this. You might need to pay tax in both the states and Spain. Basically they are going to rape you big time. f*ck that.
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kedson alves on November 26, 2023 at 4:01 pm
Video sent from heaven. Tyvm
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Erin Shine on November 26, 2023 at 4:01 pm
Amazing information, thank you so much!
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Nanki Singh on November 26, 2023 at 4:01 pm
Very helpful – thank you!
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Danielle Ramirez on November 26, 2023 at 4:01 pm
Hi! Checking in since this was posted 2 months ago. Everything I read online (even from law websites) says it's 24% thanks to Beckhams law being applicable for freelancers. Since you're already in Spain I figured I'd ask if there is an update to this video since when it was posted things were still up in the air. Thanks!
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Priya on November 26, 2023 at 4:01 pm
Hi Christina, thanks for the info! I can’t find anything online about implications for employers. In my case I work for a UK based organisation who want to know if there will be any implications for them if I move to and work in Spain on this visa e.g tax payments from them, social security etc?
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Amed Sanchez on November 26, 2023 at 4:01 pm
You will be paying into the Spanish Ponzi Social Security System. Remember that.
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idoy tv obina on November 26, 2023 at 4:01 pm
My friend come here in the Philippines.
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Aoyama Ichome1205 on November 26, 2023 at 4:01 pm
Christina, are you able to continue to contribute to 401K ? are you able to contribute to ROTH IRA ?
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P B on November 26, 2023 at 4:01 pm
Thanks Christina, what did you mean : "the social security is deductible on your taxes"
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Anakin Skywalker II on November 26, 2023 at 4:01 pm
Is social security payment tax deductible?
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Helen Pamely on November 26, 2023 at 4:01 pm
This is the most helpful video I’ve seen – thanks so much. So much misinformation out there!
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Arcabuz on November 26, 2023 at 4:01 pm
This is modern land grabbing. I swear you’ll face hostile hosts. You will be direct responsible for the raise of rental prices
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Andrey Rodrigues on November 26, 2023 at 4:01 pm
Hi Cristina. I dropped you a message on your Instagran about the contact information for the lawyer you said you recommend (from another video of yours). Thanks again for the valuable INfO. Cheers from Brazil!
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MattDoesGolf on November 26, 2023 at 4:01 pm
As an employed person earning a £59k (c.67k euros) basic salary, I pay a blended average of 18.7% in income tax in the UK.
0% for the first £12,570
20% on £12,571 to £50,270
40% on anything over £50,271 (to £150,000)A 24% flat rate (with no tax free allowance) sounds incredibly off-putting for someone who would otherwise be tempted to move to Spain.
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AlanEZ12 on November 26, 2023 at 4:01 pm
I would wait until the end of MARCH when the Spanish authorities find the best pathway for solving the issue. In principle, they are trying to incentivise digital nomads to come so I would think they will try to make a better deal on the tax benefits. Also this was the original mandate of the law.
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Hello Aelita on November 26, 2023 at 4:01 pm
Thanks for sharing your research and insights on the Spain Digital Nomad Visa! As someone who's considering applying, this was really helpful.
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Sagheer Ahmed Khan on November 26, 2023 at 4:01 pm
Oh my god! what a scam on the internet. things are really changing and it is super confusing that how the Spanish authorities will differentiate the applicant(freelance/self employed) whether they fall in 24% bechem regime or normal autonomo tax bracket, despite the fact that all would be whether self employed or Freelancers.
Bundle of thanks for giving us true information. I will now definitely think whether to apply or not.Reply
maycusa on November 26, 2023 at 4:01 pm
I'm binge watching your videos. You have the best updates on this visa. Thanks
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Maf Moors on November 26, 2023 at 4:01 pm
Thanks for this shared knowledge..you are a star ⭐️
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