Spain Introduces a New Visa and Reduces Taxes for Foreign Startups and Digital Nomads
The Spanish Parliament has adopted the new law for start-ups and digital nomads, which limits who is qualified for this visa and foresees a reduction of the Corporation Tax for these groups from 25% to 15% for their first four years in Spain.
A new rule allows anyone from the EU or third countries who has not been a resident of Spain within the last four years to obtain a special visa that can be renewed for up to five years.
In addition, the new law reduces the Corporation Tax applicable to startups and investors from 25% to 15% in the first four years, and it permits remote workers to pay the Non-Resident Tax, which applies to workers and companies who receive income in Spain but cannot reside there for more than 183 days. Digital nomads will also be entitled to take advantage of the same 15% tax rate, but only for the first four years of their stay.
A new visa under the new law will permit digital nomads to reside and work in the country for up to a year. After their legal stay expires, they will be eligible to seek for residence authorization to continue working remotely in Spain for up to an additional five years.
“It’s one of the most enjoyable moments I’ve experienced in the Parliament. It’s a law that will allow Spain to be at the forefront in the push and promotion of talent in this rapidly growing digital economy,” the Economic Affairs Minister, Nadia Calvino said.
The law was passed with 177 votes in favour, 75 abstentions, and 88 votes against, and it is expected to be adopted in the Senate without much debate in the following weeks. Vox and the Catalan parties Junts and ERC abstained the most, while the right-wing PP voted against the bill.
The new regulation is a result of the country's efforts to become more appealing to businesspeople and other entrepreneurs; in 2015, the country was ranked among the worst in the OECD for starting a business.
The government is anticipated to finalise the exact requirements and circumstances for digital nomads by the end of the month, including the minimum amount they must make, although the sum is expected to be around €2,000 per month.
By fLEXI tEAM