The Lowdown on Spain’s Non-Lucrative and Digital Nomad Visas

In today’s globalized world, more people than ever are embracing remote work and relocating abroad. Spain, with its historic cities, beautiful beaches, and vibrant culture, has become an increasingly popular destination. If you’re considering a move to Spain, you may be wondering about your visa options, specifically the non-lucrative and digital nomad visas. In this article, we’ll break down the key differences between these two visas to help you make an informed decision.

The Non-Lucrative Visa

The non-lucrative visa, also known as the “non-profit” visa, is designed for individuals who want to live in Spain without engaging in any professional or work-related activities. To qualify, you’ll need to meet the following requirements:

Financial Requirements: You must prove that you have sufficient funds to support yourself and any dependents during your stay in Spain (As of 2024, €2400 per principal plus €540 for each additional family dependent). This typically involves showing a minimum amount of income or assets, such as pension income, rental income, or investment income. This will be proven through bank statements (at least one year) and other investment assets.

Allowed Activities: With a non-lucrative visa, you cannot work for a Spanish company or be self-employed within Spain. However, you may receive income from sources outside of Spain, such as rental income from properties abroad.

Duration and Renewals: The initial non-lucrative visa is typically valid for one year, after which it can be renewed for additional two-year periods, as long as you continue to meet the financial requirements.

Pros:

• Relatively straightforward application process
• No minimum income threshold, as long as you can prove sufficient funds
• Allows you to live in Spain without working
• Potential pathway to permanent residency after five years
• Two years of residency to apply for citizenship for former Spanish colonies
• No requirement to be registered with Spanish social security or the tax authority

Cons:

• Strict limitations on working or earning income within Spain
• Financial requirements may be challenging for some applicants
• No option to work for Spanish companies or be self-employed in Spain

The Digital Nomad Visa

Spain’s digital nomad visa, introduced in 2022, is designed specifically for remote workers and entrepreneurs who want to live and work in Spain while maintaining income sources outside the country. Here are the key details:

Income Requirements: To qualify for the digital nomad visa, you must demonstrate a stable income from employment or self-employment outside of Spain. The minimum income threshold varies but is generally around, as of 2024, €2,600 per month for individuals plus €1000 for the next family dependent and €540 for each additional family member onwards.

Allowed Activities: With a digital nomad visa, you can work remotely for foreign employers or clients, as well as operate an online business or engage in freelance work in Spain, for as long as your Spanish income does not exceed 20% of your total income.

Duration and Renewals: The initial digital nomad visa is valid for one year for applications in Spanish consulates abroad and three years for applications in Spain.

Pros:

• Allows you to live and work remotely in Spain
• Potential pathway to permanent residency after five years; two years of residency – pathway to citizenship for nationals of former Spanish colonies
• No restrictions on working for foreign companies or clients
• Option to engage in self-employment or freelance work in Spain, for as long as it does not exceed 20% of total income

Cons:

• Minimum income threshold is higher than the non-lucrative visa
• Tax obligations with Spanish authorities
• Registration with social security (as of 2024, payment of €85 euros per month for the first year and €265 euros per month for the succeeding years – minimum)

Key Differences Between the Two Visas

While both visas allow you to live in Spain, there are some crucial differences to consider:

Income Sources: The non-lucrative visa requires you to have sufficient funds from sources such as pensions, investments, or rental income, while the digital nomad visa requires you to have a stable income from remote work or self-employment outside of Spain.

Financial Thresholds: The non-lucrative visa requires €2400 per month per principal as minimum income requirement, while the digital nomad visa requires a minimum income per month of €2600, as of 2024.

Tax Obligations: With a non-lucrative visa, you may not have to pay taxes in Spain if your income is sourced from outside the country. However, with a digital nomad visa, you will likely have to pay taxes in Spain on any income earned inside or outside the country.

Ability to Work for Spanish Companies: The non-lucrative visa does not allow you to work for Spanish companies or be self-employed within Spain. The digital nomad visa permits you to work remotely for foreign companies or clients. You can also work for a Spanish company for as long as it does not exceed 20% of your total annual income.

Pathways to Residency: Both visas can potentially lead to permanent residency after five years of living in Spain, provided you meet the necessary requirements. For former Spanish colonies, it can be a pathway to citizenship after legally residing in Spain for two years.

How to Choose the Right Visa for You

When deciding between the non-lucrative and digital nomad visas, consider the following questions:

• Do you plan to work remotely or be self-employed while living in Spain?
• Can you meet the minimum income threshold for the digital nomad visa?
• Are you comfortable with the tax obligations associated with each visa?
• Do you need the flexibility to work for Spanish companies or be employed locally?

In general, the non-lucrative visa may be a better fit if you have sufficient funds from sources like pensions or investments and don’t plan to work while living in Spain. The digital nomad visa is ideal for remote workers, freelancers, and entrepreneurs who want to maintain their income sources while enjoying the Spanish lifestyle.

Conclusion

Whether you opt for the non-lucrative or digital nomad visa, Spain offers an exciting opportunity to experience a new culture and way of life. With the right visa, you can enjoy the sun, tapas, and vibrant cities while maintaining your financial independence.

If you’re still unsure which visa is the best fit for your situation, consider booking a consultation with us. Email us at kpborra@borralaw.com and we can guide you through the process and help you make the most informed decision for your move to Spain.