I will describe here my experience as a Canadian getting the Digital Nomad Visa to Spain. I started really travelling after I graduated university and planted trees in BC, Alberta and Quebec.
However, I wanted to travel outside of Canada and ended up living for several years in Ecuador and Argentina. I visited Spain for the first time in 2017 and loved it. I could see the connection to Latin-America and appreciated the food, weather and the safety the most. I made the move to Spain in 2019 through the North American Language and Culture Assistants Program (Auxiliares de Conversación). I spent 4 years as an auxiliar in 4 cities Vitoria, San Sebastian, Carboneras and Cordoba. In this government run program native English speakers are put into public schools (primary, secondary and official language schools) throughout Spain.
In the middle of my fourth year I decided I wanted to stay in Spain instead of returning to the frozen tundra, luckily the digital nomad visa came out during this year as well. There are other visas you can apply for as a freelancer or as an entrepreneur but the DNV is the best one for freelancers working online. During my time as an auxiliar I was also teaching English online for a German company as a freelancer. This was my key to getting the visa. The fact that I only had one “client” made the process easier as you need to get a letter from each client authorising you to work from Spain. You also must have worked with that client for at least one year.
My Spanish level is decent so I felt confident enough to complete the application myself. There are some useful Facebook groups that can help you and I strongly recommend them, you can find great advice and answers to your questions there.
Before applying for this Visa
- You need to have an undergraduate or postgraduate degree from a University, College or Business School, or have at least 3 years of work experience in your field.
- You have to be a non-EU citizen working remotely from Spain for a company located outside of Spain. You also have to earn at least double the Spanish minimum wage which is 1050 euros per month.
- You will need to apply for a NIE (número de identidad de extranjero) and an electronic certificate or Cl@ve to allow you to access the application.
- Prove that of the total income, the part coming from Spain does not represent more than 20%
- At least three months of continuous employment relationship with the company. The company must certify that you are allowed to work online.
- The company has been operating in the market for at least 1 year
The website to apply is here: https://www.inclusion.gob.es/web/unidadgrandesempresas/solicitudes
Options when applying for this visa
There are two different options depending on what type of professional you are…
- an employee that work for a company outside of Spain
- a self-employed person that works for different companies around the world. In this case you could work for a company located in Spain as long as it does not exceed 20% of your total income.
There are also two options depending on where you are when applying for this visa…
- From Spain: you get a 3-year residence permit (renewable), these years count for both Spanish nationality and permanent residence, which you can get after 5 years in Spain. there are some other benefits to applying from Spain, especially if you are already living here and have your NIE number. It may be more straightforward as you have local documentation and could potentially speed up the process. Additionally, applying from Spain means you will be able to attend any necessary appointments or provide additional documents in person, if required.
- From Cánada (or your country of origin): and get a 1-year residence permit which could be then modified later to the 3-year residence card. Applying from Canada might give you some flexibility if you want to keep your options open, and applying from your home country can sometimes make the process feel more familiar and less stressful.
Advantages offered by the digital nomad visa
Some of the advantages that you will get as a Canadian when applying for this visa are the next…
- resolution in just 20 days, and the applicable administrative silence is positive
- tax advantages: if you are not a freelancer but just work remotely for a company you will pay a flat tax rate of just 24% on your income and also you don’t need to pay wealth tax. I am adding a section bellow dealing with Taxes.
you could include your spouse and children in the visa application - Get the permanent residency after 5 years
- Travel in all the Schengen area is allowed
- Your family members may also obtain the visa: your the spouse or unmarried partner and your dependent children and dependent relatives in the ascending line who form part of the family unit.
The documents required to apply for the Digital Nomad Visa
– Visa application form: can be downloaded here
– Photography. a passport-size colour photograph and recent (less than 2 months)
– Valid passport: original and a photocopy and valid for at least 1 year
– Criminal record certificate: no older than 6 months
– Proof of residence in the consular district.
– Visa fee: the amount to pay is €80
– Private health insurance, with coverage throughout Spain (original and a copy of the certificate)
– If you are a freelancer, a certificate of working for at least 3 months (before the visa application) for a foreign Company.
– If you are self employed, a contract with that same company for at least 1 year
– Copy of the University degree or professional certificate confirming that you have a minimum of 3 years of experience in your career.
Documents to translate
The process itself is not that time consuming, it’s just getting the documents together and translated that takes the most amount of time.
Some docs must be translated by a certified translator they are:
1) Your work contract
2) Proof that the foreign company you work for has existed for at least one year
3) Your degree/diploma/certificate related to the work you do
A simple translation of other documents are required, so you can translate these documents yourself:
1) CV
2) Letter from your company authorizing you to work abroad
Timeline
The whole process took me about 5 months. I didn’t apply for the visa until I finished the school year, where I then had 90 days to submit the application. I submitted in June and was approved about 30 business days later.
They told me to expect a response within 20 days, after 20 days I submitted a request for a favourable resolution based on administrative silence (you can do this on the same webpage as the initial application) and I was approved about 10 days after that.
What taxes does a digital nomad pay?
A foreigner is considered a tax resident in Spain if they meet one of the following requirements…
- Living more than 183 days a year in the country.
- Having their center of economic interest in Spain, that is, their commercial or work operations.
- Having their spouse or children living in the country.
As a digital nomad you will get a residence card for 3 years and you will not be able to avoid being a resident. This has great implications in relation to the taxes you pay. The good news is that with this visa even if you are a resident you will continue to pay taxes as a NON-resident.
In the case of digital nomads with an employment contract (not applicable in the case of being freelance) and with their corresponding certificate of coverage issued by the Social Security of their country of origin, they will be able to benefit from a more beneficial tax regime known as the Beckham Law.
Because of this advantage, you will be subject to a flat tax rate of 24% on income earned in Spain (not income from other countries) up to €600,000 (48% will apply beyond this amount). This 24% regime is much more favourable than the progressive rate which can reach 50% for others.
In addition, as a beneficiary of the Beckham Law, you will be exempt from filing Form 720, you will not have to pay wealth tax, and capital gains tax will be reduced to a rate ranging from 19% to 28%.
To access this regime, the following requirements must be met:
- You must not have been a tax resident in Spain in the last 5 years.
- The reason for your move to Spain must be work-related, which applies to digital nomad workers.
Once your application to benefit from the Beckham Law is approved, you will enjoy the benefits for 5 years, plus the year in which you submit your application.
Do I have to pay taxes in Spain and also in Canada?
No, the Avoidance of Double Taxation agreement between Spain and Canada establishes the rules on where a person is considered a tax resident and how taxes are managed to avoid double taxation:
Requirements for Family Members
Proof of Family Relationship: provide documentation, such as birth certificates, marriage certificates from the civil registry, or a certificate of registration as an unmarried couple. If the relationship is an unregistered partnership, any relevant documentation confirming this status may be submitted. Documents from foreign countries must be legalized or apostilled, and, if needed, accompanied by an official Spanish translation.
For Adult Children: submit evidence of their financial dependence on the worker, along with documentation of their civil status. Foreign documents must be legalized or apostilled, with an official Spanish translation provided when necessary.
For Ascendant Relatives: submit proof that these family members are under the care of the investor. As with other foreign documents, legalization or apostille is required, along with an official translation into Spanish if needed.
Proof of financial means.
Financial means must be at least 200% of the monthly Spanish national minimum wage In the case of family members: For the first family member they must prove additional financial means of at least 75% of the Spanish minimum wage. For each additional applicant, 25% of the Spanish national minimum wage is required. Any means of proof are acceptable: work contract, bank statements, payslips etc.
Health service for dependant family members
For Autonomos (self employed in Spain) the steps to follow in order to register a dependant/s would be the next (They can only be your dependent if they have no other way of accessing healthcare, they are not working and have no right of their own)…
- Register as Autónomo
- after about a week you’ll be able to download a healthcare entitlement certificate from the social security website
- take the certificate to your local health centre to register with a GP
- Once you dependant/s have the TIE (foreing identity card) and Padron (Proof of address), you add your dependant/s on the social security website as your beneficiaries (https://sede-tu.seg-social.gob.es/).
- Once those application/s have been processed, you will be able to download a new entitlement certificate, showing your beneficiaries as well.
- With that new certificate you can go again to the health centre
What taxes does a digital nomad pay in Spain?
A foreigner is considered a tax resident in Spain if he or she meets one of the following requirements…
- Living more than 183 days a year in the country.
- Having his or her center of economic interest in Spain, that is, his or her commercial or work operations.
- Having his or her spouse or children living in the country.
As a digital nomad you will get a residence card for 3 years and you will not be able to avoid being a resident. This has great implications in relation to the taxes you pay, but the good news is that this visa comes with a great advantage and that is that even if you are a resident you will continue to pay taxes as a NON-resident.
So in the case of digital nomads with an employment contract (not applicable in the case of being freelance) and with their corresponding certificate of coverage issued by the Social Security of their country of origin, they will be able to benefit from a more beneficial tax regime known as the Beckham Law.
Because of this advantage, you will be subject to a flat tax rate of 24% on income earned in Spain (not income from other countries) up to €600,000 (a rate of 48% will apply beyond this amount). This 24% regime is much more favourable than the progressive rate which can reach 50% in the general case.
In addition, as a beneficiary of the Beckham Law, you will be exempt from filing Form 720, you will not have to pay wealth tax, and capital gains tax will be reduced to a rate ranging from 19% to 28%.
To access this regime, the following requirements must be met:
- You must not have been a tax resident in Spain in the last 5 years.
- The reason for your move to Spain must be work-related, which applies to digital nomad workers.
Once your application to benefit from the Beckham Law is approved, you will enjoy the benefits for 5 years, plus the year in which you submit your application.
Do I have to pay taxes in Spain and also in Canada?
No, the agreement to avoid double taxation between Spain and Canada establishes the rules on where a person is considered a tax resident and how taxes are managed to avoid double taxation: https://www.treaty-accord.gc.ca/text-texte.aspx?lang=eng&id=102340&fbclid=IwZXh0bgNhZW0CMTAAAR1lk28H6PM1vN8glCAtvLl56e4FKH2GFgDakTrMZJxFPYj-SJehC2ghfro_aem_x8OM460aTudIIHyfQuSQFA
*A decision is always issued within a 20-day working period, otherwise the application is approved by administrative silence.
