Lawyer Raymond Nesbitt explains the unique tax advantages of Spain’s Digital Nomad Visa
The new Digital Nomad Visa (DNV) offers unique tax advantages that no other Spanish visa can match. Its main outlier – and what distinguishes it from other available visas – is precisely the wide array of tax benefits it offers. The DNV has been devised so successful applicants pay few taxes; the purpose is to incentivize these overachievers to move and work (remotely) in Spain.
The DNV is modelled after Beckham’s Law, enacted in 2015, and which applies to EU residents which in turn was inspired by the UK’s wildly popular Non-Domiciled taxpayer scheme.
It’s a legal fiction whereby a non-EU taxpayer is treated as a non-fiscal resident in Spain, but for administrative purposes, they are regarded as fully resident in Spain. The tax significance of this nuance simply cannot be understated enough and opens the door to the slew of tax benefits I collate below.
Precisely because of its huge tax advantages, the law time-gates it to a maximum of only five years.
Needless to say, a DNV makes you tax resident in Spain (that’s precisely the whole point!).
Because of its nature (to attract talented individuals), and similar to Golden Visas, all applications are fast-tracked. Meaning that in under one month you know if you’ve been accepted.
In a nutshell, the DNV is all about paying little to no tax.
DNV tax benefits
- All income & assets held abroad go untaxed. In other words, any source of worldwide income is tax-exempt (just like with the popular UK’s non-dom tax scheme).
- DNV holders only pay tax strictly on the income they derive working remotely in Spain for a foreign employer. They will pay a flat tax rate of 24% on the first €600,000 of gross annual earnings over a five-year period.
- They are not required to file a 720 tax return (unlike Spanish tax residents)
- They are not required to file Wealth Tax (unlike Spanish tax residents)
- You can request to defer the payment of tax on the first and second year without penalties or delay interests being rolled on top (as is standard)
- For the purposes of other tax agencies, you will be considered as tax resident in Spain.
LNA has a 100% track record attaining Spanish residency
Larraín Nesbitt Lawyers, small on fees, BIG on service.
At Larrain Nesbitt Abogados, we have assisted hundreds of non-EU nationals, and their families, to successfully attain a Spanish residency permit since 2013.
Interested? Come and speak to Larraín Nesbitt Abogados’ friendly staff who will be pleased to guide you through the different residency options, choosing the one that appeals to you most.
Your family’s success is only one call away: (+34) 952 19 22 88.
Residency services available from LNA
- Digital Nomad Visa
- Golden Visa
- Non-Lucrative Visa
- EU-family regrouping (Marriage Visa)
- Lucrative Visa
- Spanish Residency permit for EU nationals (includes TIE card & NIE number)
Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Voluntas omnia vincit.
2.023 © Raymundo Larraín Nesbitt. All Rights Reserved.
Marbella-based Larraín Nesbitt Abogados (LNA) has over 20 years’ taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain.
You can review here our client’s testimonials.
Article copyrighted © 2023. Plagiarism will be criminally prosecuted