ARCHIVED – Spain reduces taxes for digital nomads – Spanish News Today

ARCHIVED – Spain reduces taxes for digital nomads – Spanish News Today

Date Published: 13/12/2021

People working remotely in Spain will be subject to a lower income tax rate

In an attempt to attract more ‘digital nomads’ to the country, the Spanish government announced on Friday December 10 that it will reduce taxes and improve visa facilities for both salaried and independent workers who choose to work remotely while travelling.


The bill will allow “attracting and recovering international and national talent, favouring the establishment in Spain of teleworkers and digital nomads”, the Ministry of Economic Affairs explained on Twitter.



Digital nomads will now be able to “reside and work in Spain for five years” and only be subject to Non-Resident Income Tax, which is charged at a reduced rate. The measure is part of a bill for start-ups which the Council of Ministers hopes will attract investors who wish to support emerging companies in the technology sectors thanks to a number of tax incentives.


The initiative will also apply to Spaniards who have been living abroad for more than five years and who wish to return to Spain to work.


Across the globe, the number of digital nomads has risen exponentially since the onset of the coronavirus pandemic, and a number of countries have taken advantage of the economic gain associated with remote working.


In Croatia, for example, a law was passed in the spring of 2021 that allows non-EU foreigners to obtain one-year residence visas and be exempt from income tax.


In Georgia, a visa was created to allow workers who earn less than $ 2,000 a month to live for a year in the country. A model that Thailand, Iceland and Costa Rica have also implemented.


Image: Archive


Digital nomads