On 23 December 2022, Law 28/2022, of 21 December, on the promotion of the startup ecosystem ("Startups Law") came into force, which included a new Chapter V Bis in Law 14/2013, of 27 December, on support for entrepreneurs and their internationalisation, which approves a new type of residence visa for third-country nationals who carry out international remote work ("digital nomad visa").
The situation experienced as a result of the Covid-19 pandemic has led to a substantial increase in the number of people working remotely.
For this reason and, as has already happened in numerous countries, Spain, by amending the Entrepreneurs Support Law and introducing this new type of visa, aims, among other things, to attract these remote workers, known as digital nomads, to our country.
Situation prior to the entry into force of the Startups Law
Before the entry into force of this Law, a person from a third country could only stay in Spain for a maximum of three months in any 180-day period counted from the date of first entry.
What is the digital nomad visa?
The digital nomad visa is a type of visa under which a national of a third country is authorised to reside in Spain to carry out remote employment or professional activity for companies based outside Spain, using exclusively computer, telematic and telecommunications means and systems.
Types of people who can apply for the digital nomad visa
This type of visa can be applied for by nationals of third countries outside the European Union who are in the following situation:
- What carry out their employment activity for companies based outside Spain.
- What carry out their professional activity for companies based outside Spain or those who carry out a professional activity for companies located in Spain, provided that this work does not exceed 20% of their total professional activity.
Requirements for the digital nomad visa
To apply for this type of visa, a series of requirements must be met in addition to the general requirements, as set out below:
- Proof of an employment or professional relationship at the date of application with the foreign company or companies with which this relationship is maintained, for a minimum of three months prior to the application.
To this end, a certificate from the company must be provided showing:
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- If self-employed, how long they have been carrying out the activity, as well as the terms and conditions under which they will carry out the remote professional activity.
- If employed, the employee's length of service with the company, as well as the company's explicit permission for the employee to work remotely.
- Proof of a real and continuous activity of the company or group of companies by which they are employed or for which professional services are provided. To this end, the following must be provided:
- Commercial registry certificate or similar showing the date of incorporation of the company and type of activity
- Certificate from the Tax Agency of the country where the activity is declared, showing the income tax, profits or similar return for the previous year.
- In case of carry out an employment activity: Letter from the foreign company authorising remote work. This letter must be signed by a representative of the company, whose identity must be duly proven.
- If a professional activity is to be carried out: documentation proving the terms and conditions under which the professional activity will be carried out remotely.
- Proof of sufficient financial resources:
- The applicant for the remote work visa must prove that they have financial resources equal to or greater than 200% of the Minimum Interprofessional Wage (SMI).
- For family members, the first family member requires financial resources equal to or greater than 75% of the SMI and, for the remaining family members, 25% of the SMI for each additional family member.
It is important to bear in mind that if, together with the visa application, a visa is also requested for ascendants or descendants over 18 years of age, the financial dependence of that family member on the applicant must be proven, as well as that they have not formed their own family unit.
- Having no criminal record in the country or countries in which they have resided during the last two years. To this end, a duly legalised criminal record certificate for the previous two years and a responsible declaration of the absence of a criminal record in the last 5 years must be provided.
Proof of having public or private health insurance providing coverage comparable to that provided by the National Health System. The insurance must be taken out with an insurance company authorised to operate in Spain, and must remain active throughout the period of validity of the authorisation; travel insurance is not considered valid.
However, if the applicant is covered by an international regulation coordinating social security systems and this does provide for health coverage in Spain, they must prove it with the certificate of entitlement issued by the competent institution of the State in whose social security system they are insured.
- Responsible declaration stating the commitment to comply, prior to starting the employment or professional activity, with social security obligations and, in the event of no coverage under an international regulation coordinating social security systems and employed work, proof of the company's registration, or evidence of its application for registration with Social Security.
- Original and copy of the proof of qualifications or professional experience established in art. 74 bis of the Law, as follows:
- Proof of being a graduate or postgraduate of prestigious universities. This will be proven by submitting the qualification or documentation proving a minimum of three years' professional experience in roles similar to the position to be held, which can be considered equivalent to the aforementioned qualification.
- If the intention is to practise regulated professions, the recognition of the qualification must be proven in accordance with the sector regulations governing their practice.
How do you apply?
It can be applied for in two ways, depending on whether or not the applicant is in Spain:
- If the applicant is not in Spain, the application must be made through the Spanish consulate in the country of origin.
- If the application is made from Spain, it will be made through the Ministry of Migration at the Large Companies Unit(UGE).
The the deadline for deciding on the application is a maximum of 20 days.
Duration of the visa
The duration of the visa varies depending on whether the application is made from Spain or from the country of origin:
- If the application is made from the country of origin, the initial duration of the visa will be one year, unless the work period is shorter, in which case the visa will be valid for the same period.
Within sixty days before the visa expires, a residence permit may be applied for, if the requirements are still met, for a period of three years, renewable for a further two years.
- If the application is made while legally resident in Spain, the the authorisation will be valid for three years, unless it is requested for a shorter work period, and it may be renewed for periods of two years, provided that the conditions that gave rise to the right to the visa are maintained.
Advantages of this type of visa
This type of visa has a great many advantages, mainly compared with the non-lucrative residence visa, which was the one generally chosen but which prevented any employment, professional or economic activity in Spain.
Among the advantages of this type of visa, we can highlight:
- The deadline for deciding on the application is 20 days.
- It allows family members to also obtain residence.
- It allows free travel and movement within the European Union.
- The period of residence counts towards obtaining permanent residence or citizenship, so if you reside in Spain for 5 years, you can apply for permanent residence.
In addition, this type of visa offers a series of tax advantages that we will analyse in future posts
