People who work remotely in Spain are subject to a lower income tax rate
To attract more “digital nomads” to the country, the Spanish government announced on Friday December 10th that it would cut taxes and improve visa facilities for employees and self-employed who work remotely while traveling.
The draft law will make it possible “to attract and regain international and national talent and to encourage the settlement of teleworkers and digital nomads in Spain,” said the Ministry of Economic Affairs on Twitter.
¿Eres un emprendedor y quieres montar una # Start-up️
➡️En España te lo vamos a poner fácil
El Gobierno ha aprobado el proyecto de Ley de #Startups. Con su entrada en vigor tendrás acceso a majores incentivos fiscales, tanto si eres una empresa, un inversor o un trabajador. pic.twitter.com/9lEoAxmg6l
– Asuntos Económicos y Transformación Digital (@_minecogob) December 10, 2021
Digital nomads can now “live and work in Spain for five years” and are only subject to non-resident income tax, which is levied at a reduced rate. The move is part of a start-up bill that the Council of Ministers hopes will attract investors looking to support emerging tech companies through a range of tax incentives.
The initiative also applies to Spaniards who have lived abroad for more than five years and want to return to Spain to work.
In Croatia, for example, a law was passed in spring 2021 that enables non-EU foreigners to obtain a one-year residence visa and be exempt from income tax.
A visa was created in Georgia to allow workers earning less than $ 2,000 a month to live in the country for a year. A model that Thailand, Iceland and Costa Rica have also implemented.
Image: Archive
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