Spain is consistently voted as one of the top European countries to live and work based on the lifestyle, the health services, the climate and the infrastructure so it’s no wonder that Spain’s government want to capitalise on this, firstly with the introduction of the new Entrepreneurship Law which came into force last December, and secondly with the planned introduction of the new Digital Nomad Visa, which is hopefully coming into force later on this year.
Both the Entrepreneurship Law and Digital Nomad Visa aim to attract more foreign investors, and they will introduce a range of measures which will remove red-tape and make the process of living & working in Spain easier, despite the implications of Brexit and the UK leaving the European Market.
Given that both of these will also allow family members to be included such as a spouse, un-married partner or children who are still financially dependent on the worker/entrepreneur there’s no reason as to why you shouldn’t look to take advantage of either one, whether you are looking to run a business here, or whether your employer is allowing you to work remotely.
Let’s deal with the Entrepreneur Law first which is already in force, and introduces a number of positive changes to make it easier for business people and business angels to start up or invest here.
Amongst many others, here’s the key benefits to take into account:
- It will dramatically reduce the number of steps required to incorporate a new business
- Non-resident income tax will be reduced from 25% to 15% over a four year period as long as the company turnover is positive.
- The first €100,000 will be tax free!
- There will be a tax referral from 6-12 months which will allow more time to settle tax due
- Removal of NIE requirement for foreign investors – only a tax number will be required
- Tax exemptions of €100,000 per year for Business Angels
- Tax deductions expanded to 50% for Business Angels
- Business angels will be exempt from paying tax on profit if they reinvest in another startup
Let’s now deal with the Digital Nomad Visa and the key benefits of this. Before we go any further though, we should make you aware that it’s only a proposal at the moment, and hasn’t yet been granted:
- It’s designed for freelancers, those who are fully employed but work remotely or those who make at least 80% of their income from companies outside of Spain
- It would allow remote foreign workers to essentially live in Spain, without needing to apply for full residency, for up to one year
- There’s no restrictions on where you have to apply for it, so it’s possible for both the Costa Blanca and Murcia.
- It would allow you to work in Spain without a full work visa for a period of up to 6 to 12 months, and then extend this twice.
- It’s perfect for those who are British & outside of the EU, as it would potentially circumvent the existing 90 day out of every 180 day rule due to Brexit.
Whether it’s the Entrepreneur Law or the Digital Nomad Visa, whichever one suits your requirements better, then do bear in mind that there are and will be eligibility requirements that need to be met, so even though we’d love for it to happen, it won’t be as easy as just packing your bags and jumping on a plane!
Here at Simply Spanish Homes, we strongly recommend you to do your research, and always consult with a Solicitor who can advise you correctly. To be honest, even if you are just looking to buy a holiday home, or permanent home without applying for either of the above visa’s you should still appoint a Solicitor to act on your behalf!
If there’s anything else we can help with then please do contact us, or if you are ready to start your property journey, you can search for property portfolio here.