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Digital Nomad Taxes in Spain: All You Need to Know
Everything you need to know about digital nomad taxes in Spain: regulations, benefits, how to pay them and recommendations.
The figure of the digital nomad has gained great relevance in recent years. Especially in a country like Spain, where the climate, culture and quality of life attract professionals from all over the world. A study by Panorama Freelance Europe in 2021, reveals that eight out of ten freelancers reside in Madrid or Barcelona. On the other hand, 44% of digital nomads in Spain prefer places like Malaga and the Canary Islands for their beaches and summer climate, according to the travel agency Rumbo.
Working from Spain implies the responsibility of complying with tax obligations. That’s why it’s crucial to know all about digital nomad taxes in Spain: what kind of taxes apply to your situation and how you can benefit from local laws.
If you’re wondering how to navigate the Spanish tax system and make the most of your experience as a digital nomad, read on. At Holafly we have worked on a complete guide for you to understand and solve your doubts about the taxes you must pay if you are a digital nomad and the aspects related to taxation for living in this country for an extended period of time. Don’t miss it!
How do taxes work for a digital nomad in Spain?
Digital nomads should familiarize themselves with the Spanish tax system. This involves understanding how their income is taxed and what obligations they have depending on their particular situation. Generally speaking, digital nomads residing in Spain are subject to the country’s tax regulations even if their income comes from foreign companies.
What law regulates digital nomad taxes in Spain?
The tax regulation for digital nomads in Spain is found in the Non-Resident Income Tax Law (IRNR), as well as in the Personal Income Tax Law (IRPF). These laws establish the basis for determining the tax liability. Depending on the length of stay in the country and the origin of the income.
What types of taxes should digital nomads in Spain be aware of?
1. Personal Income Tax (IRPF)
This tax is for people who live in Spain and work there. If a digital nomad lives in Spain more than 183 days a year (almost six months), they are considered a tax resident and have to pay this tax on their global income, i.e. on what they earn in Spain and in other countries.
For example, if a digital nomad earns 30,000 euros ($31,285) per year and lives in Spain more than 183 days, they have to pay a percentage of those 30,000 euros as tax. This percentage can vary, but let’s assume it is 20%, then they would pay 6,000 euros ($6,257) in taxes.
2. Non-Resident Income Tax (IRNR)
If the digital nomad lives in Spain for less than 183 days, they are considered a “non-resident”. In this case, they only pay taxes on the money generated in the country. Non-residents usually pay a 24% tax rate on income after generating it. In other words, if a digital nomad lives in Spain for only 150 days and earns 10,000 euros ($10,429) working for a Spanish company, they would only pay 24% tax on that 10,000 euros, which would be only 2,400 euros ($2,500).
On the other hand, it is relevant to take into account the Law on Urgent Measures for Remote Work. Which, although it does not specifically regulate taxes, establishes the legal framework for remote work in Spain. This law allows digital nomads to have a legal support when working from the country to clarify the tax status and define whether they are considered as remote employees. Which allows to establish how to pay taxes correctly, either as a resident or non-resident.
When should digital nomads start paying taxes in Spain?
Digital nomads should be aware that the length of their stay in Spain influences their tax status. If a digital nomad stays in the country for more than 183 days a year, they are considered a tax resident and must comply with the obligation to pay taxes from the first day of their residence.
This implies that, once they exceed 183 days, they must file their income tax return annually, normally between April and June of the following year to which the return corresponds. For example, you would file the 2023 return between April and June 2024.
Non-residents, on the other hand, must file their payments on a quarterly basis to report income such as rents, work performed, etc. Complying with these obligations in due time avoids penalties and worries during the stay in the country.
What type of visa allows me to live as a digital nomad in Spain?
Since 2023, Spain has introduced a visa designed to facilitate the stay of remote workers. It allows digital nomads to reside and work in the country for a period of up to one year. You can renew it if you meet certain conditions. Digital nomads who obtain this visa must also pay taxes according to the qualification of their time of stay and the tax rate will depend on their income.
For more information about this specific visa for digital nomads, visit the link to this article.
What tax benefits can a digital nomad obtain in Spain?
As we have specified above, digital nomads who choose Spain as their temporary home must pay taxes, which vary according to the length of their stay. But despite these tax responsibilities, there are some laws and even places in Spain where nomads can benefit from a lower tax burden in addition to offering a number of advantages that make this destination a very attractive option for living and working. From its sunny climate and rich culture to the quality of life and access to a vibrant community of professionals, there are many reasons that justify the choice of Spain as a base for digital nomads:
1. The Beckham Law: tax savings for digital nomads and foreigners in Spain
The Beckham Law is a regulation in Spain that was created to attract foreign professionals, such as sportsmen and highly qualified workers. It is named after the famous footballer David Beckham, who moved to Spain to play for Real Madrid. This law allows foreign workers who move to Spain to pay less tax for up to six years. During this period, individuals pay only 24% on income earned in Spain, instead of the higher rate of 47% or more.
And how does the Beckham Law relate to digital nomads?
The Beckham Law is relevant to digital nomads because many of them are foreign workers who can benefit from this tax reduction. To take advantage of this law, digital nomads must meet certain requirements such as:
- Not having been a tax resident in Spain in the last 10 years.
- Work for a Spanish company or have a contract that justifies it.
2. Canary Islands: more than a paradisiacal location
According to an article by EBF Consulting, the Canary Islands are an attractive destination for digital nomads both because of the beauty of the archipelago and its special tax treatment. Workers living there can benefit from a lower tax burden on the purchase of products and goods, receive deductions and bonuses on various taxes to encourage investment and employment in sectors such as tourism and technology which can result in a more favorable environment to live and work.
3. Deductions for residents in rural areas
In 2024, Spain has maintained certain personal income tax deductions for people living in rural areas. This may include digital nomads who settle in these areas.
A deduction is like a discount on your taxes. The Spanish government’s Tax Agency portal, establishes a tax deduction of 20% for areas with a population of less than 2,000 inhabitants, and 15% for municipalities with less than 5,000 inhabitants.
Thus, Spain is currently emerging as the country preferred by digital nomads to live and work temporarily, surpassing Portugal, among other things for its tax policies, according to a survey conducted by VisaGuide in 2024.
How much tax must a digital nomad pay in Spain?
The amount a digital nomad must pay in taxes depends on several factors, including their income level and tax status. Below are the most relevant taxes:
| IRPF: | IRNR: | VAT: |
| This tax is applied to global income. The rate varies according to income brackets, starting at 19% for the first 12,450 euros and going up to 47% for income above 300,000 euros. | If a digital nomad qualifies as a “non-resident”, the income generated in Spain will be subject to IRNR, which is applied at a flat rate of 24% on income earned in the country. | Generally, it does not apply directly to a digital nomad’s income, but those offering services to clients in Spain may be required to register and collect VAT, which is currently 21%. |
We recommend you to keep an exhaustive control of your income and expenses. This will make it easier for you to file your tax returns and comply with your tax obligations.
Are there any double taxation agreements and treaties with Spain?
Double taxation can be a concern for digital nomads who generate income in more than one country. Spain has signed double taxation agreements with more than 90 countries. Allowing digital nomads to benefit from tax deductions or exemptions.
For example, if a digital nomad is a resident of the United States and works in Spain, the agreement between the two countries may allow him/her to avoid paying taxes on the same income in both places. It is essential to find out about these agreements and consult a tax advisor.
On the website of the Ministry of Finance of the Spanish government you can check the alphabetical list of countries with double taxation agreements.
Where to get advice before paying taxes for digital nomads in Spain?
Having tax advice is a wise strategy for any digital nomad who decides to settle in Spain. There are several agencies and companies that offer specialized advice services, both online and in person. Take a look at our recommendations:
- Tax consultancies and tax advisors. TaxDown and Nomad Tax help expats and digital nomads manage their tax situation. They offer personalized consultations and service packages tailored to the needs of professionals working remotely.
- Online platforms. Services such as Contabox provide tools for managing and calculating taxes, as well as virtual consulting. This is very useful for those who prefer to manage their affairs from the comfort of their home.
- Digital nomad groups and communities. There are several blogs and websites dedicated to the digital nomad community that offer guides and experiences about tax life in Spain, such as Nomad List, Remote Year, or personal blogs of digital nomads that can be valuable to find testimonials and references of professionals offering quality services.
Tax payment process for digital nomads in Spain
If you are a digital nomad planning to live and work in Spain, you should inform yourself and understand how taxes work and what steps you must follow to meet your tax obligations. Here we explain the process in a simple way.
1. Define your tax situation
- Tax residency: If you spend more than 183 days a year in Spain, you will be qualified as a tax resident. This means that you will have to pay tax on all your global income. If you qualify as a non-resident you only need to pay tax on the income you generate while you are in Spain.
2. Obtain your NIE
- Foreigner Identification Number (NIE): It is necessary for any tax procedure. You can obtain it by going to a police station or Spanish consulate. You just need to bring your passport and fill out a simple form.
3. Calculate your taxes
- Identify where your income comes from: Gather all the necessary documentation, such as invoices and receipts.
- Tax resident: Let’s say you earn 40,000 euros ($41,700) a year. Tax rates may vary, but an average could be 20%. In this case, the tax would be 8,000 euros ($8,340) (20% of 40,000).
- Non-resident: 24% of the income generated during your stay in Spain is calculated.
4. Fill in the forms
- Form 100: This is the form for the Personal Income Tax (IRPF) return. Here you will report your income and calculate the tax due.
- Form 390: This is an annual summary of the IRPF that complements the declaration.
- Form 210: This is the form you must use as a non-resident to declare your income generated in Spain.
5. Filing the documentation
- Tax agency: You can file your forms online through the Tax Agency’s website (www.agenciatributaria.es). You can also do it in person at their offices, but the online option is usually more convenient.
- Taxpayers must file annually, while non-residents must file quarterly.
6. Pay your taxes
- If you have to pay, you can do it online through the Tax Agency platform.
Remember that to avoid legal and financial problems if you want to settle temporarily in Spain, it is essential to know the digital nomad taxes in this European territory. By understanding how the tax system works, what laws apply and when tax obligations must be met, you will be able to enjoy your experience as a digital nomad in Spain with greater peace of mind. It is always advisable to seek advice to ensure that you are complying with all obligations and taking advantage of the tax benefits available.
Frequently asked questions about digital nomad taxes in Spain
To be considered a tax resident in Spain, you must stay in the country for more than 183 days a year. You are also considered a resident if you have the center of your economic or family interests in Spain.
As a digital nomad, you will have to pay Personal Income Tax (IRPF) if you are a tax resident. If you are a non-resident, you will only pay Non-Resident Income Tax (IRNR) on income generated in Spain.
Yes, you can benefit from the Beckham Law if you move to Spain and meet the requirements. Such as not having been a resident in Spain in the last ten years. This will allow you to pay a reduced tax rate on your income for six years.
Digital nomads can deduct certain expenses related to their work. Such as renting a workspace, supplies, and internet services, as long as they can justify these expenses on their tax return.
If you are a tax resident in Spain, you will have to declare all your global income, regardless of its origin. If you are a non-resident, you will only declare the income generated in Spain. It is important to be aware of the agreements to avoid double taxation between Spain and other countries.
You can consult the Tax Agency on its website, where you will find detailed information. You can also look for tax advice specialized in digital nomads to help you better understand your obligations and optimize your tax situation.
