Spain Announces Its Own Digital Nomad Visa With Just 15% Tax

Spain has unveiled further plans for a digital nomad visa program that will allow you to effectively live and work in a country that offers a) some of the best internet speeds in Europe, b) relatively cheap living costs, and c) heaps of inclement weather for up to 5 Years.

Non-EU nationals working remotely for companies outside of Spain are eligible to earn coins from Spanish companies with certain limitations (maximum 20% of total income). Close relatives such as a spouse or children are also eligible to join the main applicant.

“As the law has yet to be passed, some details have yet to be worked out, but the visa – essentially a residence permit – is expected to be valid for one year initially, with extensions for up to five years depending on the circumstances of the applicant can,” explains Stephen Burgen of The guard.

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“Applicants must be able to demonstrate that they have been working remotely for at least a year. They must have an employment contract or, if they are self-employed, prove that they have been regularly employed by a company outside Spain.”

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“They also have to prove that they earn enough to support themselves and that they have an address in Spain. It is still unclear whether they will have to undergo a criminal record extract.”

Speaking of taxes: In the first four years, an extremely favorable tax rate of 15% applies compared to the usual base tax rate of 25%. How much you need to pony past that point, however, has yet to be specified.

Economy Minister Nadia Calviño said the country hopes to “attract and retain international and national talent by helping teleworkers and digital nomads settle in Spain”. But it’s by no means the only party dangling a carrot to lure expats.

Digital nomad visa in Indonesia

Back in June, Indonesia revived talks about its long-discussed digital nomad visa, which similarly lets you live and work anywhere from Jakarta to the island of Bali for five years. The crucial difference? Those first five years are tax free.

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“In the past, the ‘three S’s’ were: sun, sea and sand. We move it towards serenity, spirituality and sustainability,” said Indonesian Tourism Minister Sandiaga Uno South China tomorrow post.

Uno later cited research suggesting that Indonesia — Bali in particular — was “primarily” for 95% of remote workers surveyed, before going into exactly how that idea was shelved in 2021 when COVID-19 hit border closures and international visitor restrictions.

“Now that the pandemic is over and all departments are engaged and working together, from health to immigration, we believe this is an opportune time to reinvigorate this idea.”

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Of course, Bali is another popular spot among freelancers due to its glorious tropical climate and low cost of living. The only problem? The current visa regulations do not make it easy to settle in for a long-term stay.

Currently, telecommuters who wish to make Bali their office have the choice of applying for the free visa, visa on arrival (Voa) or the social/tourist/cultural visa – which is only valid between 30 and 180 days. Visitors who stay longer eventually become local tax residents and must pay Indonesian tax rates on foreign income.

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Of course, a special permit for five years and the promise of zero taxation during your stay if the income is from a company outside Indonesia is an attractive upgrade.

Spain announces its own

Sandiaga Uno said the country hopes that over the next year 3.6 million overseas travelers will return to the archipelago with the help of tools such as the proposed digital nomad visa and a greater focus on the spiritual retreats and ecotourism offered in Indonesia .

“In this way we achieve better quality and a better impact on the local economy.”

If either Spain and/or Indonesia’s digital nomad visa programs are officially approved, the countries will join a growing list of destinations that includes:

  • Andorra
  • anguilla
  • Antigua and Barbuda
  • Aruba
  • Bahamas
  • Barbados
  • Bermudas
  • Cape Verde
  • Cayman Islands
  • Croatia
  • Curaçao
  • Czech Republic
  • Dominika
  • Estonia
  • Georgia
  • Germany
  • Greece
  • Iceland
  • Italy
  • Malta
  • Mauritius
  • Mexico
  • Montserrat
  • Norway
  • Seychelles
  • Taiwan
  • UAE