Spain’s new Digital Nomad Visa 2023 – Everything we know thus far…

Spain Digital Nomad Visa 2023

Spain’s Digital Nomad Visa program has been in the works for quite some time. And despite our initial expectations, the program has a fair amount going for it — including a decent tax incentive to sweeten the deal.

Let’s get into the details below…

Spain’s DNV: A decently priced program with some sweet added benefits…

It’s hard not to like Spain. Its famous beaches, in particular, attract scores of travelers and settlers from all over the world on an annual basis.

Spain is a place of raw energy and diverse landscapes. Ranging from the Pyrenees Mountains in the North and lush vegetation in the Northwest to deserts in the south and plains in the west, the country is truly a dream destination for explorers.

Then, of course, there are the Spanish cities. Madrid is magnificent, and was once the capital of a vast Spanish Empire. Many of South America’s most precious cultural artifacts and treasures are still housed in the city’s museums.

Barcelona, too, is a city that combines everything you may desire – from great weather and amazing restaurants to a fabulous lifestyle and Gaudi’s architecture.

Combine this with a very reasonable cost of living, and you have a recipe for an amazing place to live and roam around.

And luckily for digital nomads, at the end of 2022, Spain introduced their version of a digital nomad visa as part of their new “Startup Law.”

Let’s have a look at how the program compares to that of its neighboring competitor, Portugal.

Spain vs Portugal: The two Iberian DNVs at a glance

Country Spain Portugal
Initial residency validity and renewals Initial: 3 years

Renewals: 2-year increments indefinitely, unless you choose to apply for permanent residency after 5 total years of residency
Two options:

1) Short-term visa: 1 year, OR

2) Long-term residency: 2 years
Financial requirements Income: €2,160 (~$2,325), plus €810 (~$870) for each dependent. Income: €3,040 (~$3,270) per month, OR

Savings: €9,000 (~$9,680) for long-term residency option
Safety Very Safe (2/7) Very Safe (2/7)
Climate Very Comfortable (1/5) Very comfortable (1/5)
Expat cost of living  Moderate (4/7) Moderate (4/7)
Can the DNV lead to permanent residency and citizenship? Yes, after five years of residency in Spain you can obtain permanent residency.

After 10 total years of residency, you can apply for citizenship.

Short-term visa renewable for one year.

Long-term residency extendable for three years.

After 5 years of total residency, you can apply for either permanent residency or citizenship.

Source: Sovereign Man’s Cost of Living Index

Does the Spanish Digital Nomad Visa program offer a path to citizenship?

Your initial residency permit will be valid for three years. It is later renewable for two years at a time, indefinitely.
Note that if you are applying through a consulate from abroad, you’ll obtain a one-year visa to enter Spain. And then, once in Spain, you can upgrade it to the standard initial residency, which is good for three years.

The best part? The years you spend in Spain on a digital nomad residency permit count towards your journey to permanent residency and potentially, citizenship.

After five years of residency as a digital nomad, you become eligible for Spanish permanent residency. And after five more years, you become eligible for naturalization – but depending on your country of origin, you may be required to renounce your original citizenship.

Sovereign Man members, consult our forthcoming Black Paper on Digital Nomad Visas for more information regarding the Spanish naturalization rules, as well as a sense of your accommodation costs in Spain’s biggest cities.

What are the key financial requirements for the program?

The financial requirements aren’t excessive. You need to prove a monthly income of 200% of the Spanish national minimum wage (the so-called Salario Mínimo Interprofesional).

You’ll also need to add 75% of the minimum wage for each additional family member:

Applicant Monthly income Total annual income
Primary €2,160 (~$2,325) €25,920 (~$27,780)
Per Dependent €810 (~$870) €9,720 (~$10,440)
Family of Four €4,590 (~$4,919) €55,080 (~$59,026)

You can apply for the Spanish digital nomad visa at your nearest consulate or using a lawyer while in Spain. And the application fee, too, is very reasonable – just $107.

Sovereign Confidential members, reach out to us if you’d like the contact details of our trusted legal contacts on the ground…

What will my tax situation look like as a digital nomad in Spain?

Spain is a notoriously tax-heavy country. But as a digital nomad, they’ve prepared something sweet for you…
Predictably, you will become a Spanish tax resident after spending the standard six months on the ground.

And regular income tax in Spain is HIGH – earnings above €60,000 (~$64,600) are taxed at a rate of up to 47%.
Fortunately, digital nomads can apply for the Non-Resident Income Tax Regime and, for up to six years, pay a reasonable flat tax rate of 24% up to €600,000 of income.

Anything above that will be taxed at a mind-boggling 47% tax rate.

However, this tax incentive is valid only for new residents. So if you have been a Spanish resident in the past five years, you won’t be eligible for this benefit.

It is important to note here that DNV holders are also considered “non-residents” in terms of Spain’s notorious wealth tax. Hence you will NOT be liable to pay it, which is very good news.

Furthermore, as a DNV holder, you won’t even have to file a copy of Form 720 – the declaration of your worldwide assets.
der, you won’t even have to file a copy of Form 720 – the declaration of your worldwide assets.

In summary…

Spain’s Digital Nomad Visa has a more affordable minimum income requirement than that of Portugal. And its initial residency permit is valid for longer – BUT the road to Spanish citizenship is longer, too (ten years, vs five years in Portugal).

In addition, you’ll be shielded, to a large degree, from the country’s notoriously high income taxes for a period of up to six years. (Whereas the tax benefits under Portugal’s Non-habitual Residency program last for 10 years.)

So while no place – and no residency program – is perfect, we believe that the new Spanish Digital Nomad Visa is well worth considering.

Yours in freedom,

Sovereign Man

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