What Taxes Will You Pay On The Spain Digital Nomad Visa

Are you looking to apply for the Spain Digital Nomad Visa? If so, make sure you are fully aware of the tax rules for your situation! There are many myths floating around for what digital nomads will be paying in Spain and most of it is false or misleading information! In this video, I share with you information I have received from different lawyers as well as from my own research. However, I am not a lawyer so please make sure to do your own due diligence as well!
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[@Shannon-m5q]

I am *so* grateful for this video - THANK YOU for shedding light on this frustratingly vague topic; after months of fruitless searches providing the same unhelpful data, your straightforwardness with examples was a huge breath of fresh air!

[@helloaelita]

Thanks for sharing your research and insights on the Spain Digital Nomad Visa! As someone who's considering applying, this was really helpful.

[@denniszenanywhere]

I'm binge watching your videos. You have the best updates on this visa. Thanks

[@christinaadavis]

Thanks! Glad you’re finding them helpful!

[@denniszenanywhere]

@@christinaadavis Would you like to talk about the part in this visa about how you can also work in Spain with this visa but only for about 20 hours a week? Is that correct? That's allowed or is that not yet clear? So many things still unclear about it.

[@christinaadavis]

@@denniszenanywhere So no more than 20% of your total income can be from within Spain!

[@denniszenanywhere]

@@christinaadavis Thanks, you already mentioned this in one of your videos. But just to clarify. If I have an LLC and getting paid for my freelance gigs on my LLC, would that still have same arrangements as the digital nomad visa for remote workers working for a company? OR different? I think you said tax bracket would be different which I am ok but curious to know if income from one's own LLC or company is ok. Self-employed, in short?

[@christinaadavis]

@@denniszenanywhere so there’s a big debate over this right now and there isn’t a straight answer yet because technically if you own your own company and are working from Spain then 100% of the work is being done within Spain which technically doesn’t qualify. Bit march 31st they are supposed to release the final information for all the consulates so there should be clarification by then!

[@helenpamely]

This is the most helpful video I’ve seen - thanks so much. So much misinformation out there!

[@christinaadavis]

so happy you found the video helpful!

[@NaturalMentalHealthTreatments]

Thanks for clarifying the tax requirements. I’m thinking of Albania, Dubai or Guernsey. I have to exit the uk ASAP because the uk government is planning to start an exit tax which will make leaving the uk not worthwhile.

[@christinaadavis]

That’s crazy about the new exit tax! Dubai is great for tax purposes for sure

[@foreverfree2624]

Very helpful, thank you for sharing

[@mx3zehn]

? I'm now confused... Here in Germany the agency's explain it a little bit different...? But many thanks to you. Especially for the addon of social security... I didn't know this...

[@angelagil8577]

This is very useful. Ty!

[@anaelisaalmeidaayresanaeli9796]

Thank you for the video! I have been wondering about it, I think hiring an accountant would be more useful than a lawyer 😅Do I have to register as autônomo in Spain before/during application to visa or can I do it only after approval?

[@ErinShine]

Amazing information, thank you so much!

[@thesmithsmaf]

Thanks for this shared knowledge..you are a star ⭐️

[@christinaadavis]

Of course!!

[@Ra1HBoW]

Very useful, thank you

[@NankiSingh]

Very helpful - thank you!

[@austinsmith3698]

Thanks for the great info! Christina, do you what taxes you are going to have to pay in the US? I believe you get a credit for income taxes, but wondering if we will have to pay social security taxes in both countries?

[@silvanapalacios7499]

Hi! I’m commenting. A year later and things apparently changed as I spoke with a tax expert from a law firm in Spain and they said every person with a nomad worker visa is eligible to apply to the Beckham law.

[@christinaadavis]

Anyone who is self employed still doesn’t qualify for the Beckham law on the digital nomad visa

[@TheRedFeet]

Hi Cristina. I dropped you a message on your Instagran about the contact information for the lawyer you said you recommend (from another video of yours). Thanks again for the valuable INfO. Cheers from Brazil!

[@Emily-hn5ee]

Aw TAWN no mo is the pronunciation for Autonomo. Thank you for the info. What's the difference between being freelance and someone who works for a US company but lives in Spain?

[@savannahshi9829]

thank you so much !

[@Priya-bu6rj]

Hi Christina, thanks for the info! I can’t find anything online about implications for employers. In my case I work for a UK based organisation who want to know if there will be any implications for them if I move to and work in Spain on this visa e.g tax payments from them, social security etc?

[@ayjee8]

Thanks for the video. I’m from the US and my company says I can’t work outside of the country, even with a visa. There’s nothing in their policy that talks about this. I think they’re worried about taxes. They say I have to be registered in the company with a U.S. address. Does the DNV protect companies from any issues here if they let their employees work in Spain with the DNV?

[@sagheerahmedkhan9482]

Oh my god! what a scam on the internet. things are really changing and it is super confusing that how the Spanish authorities will differentiate the applicant(freelance/self employed) whether they fall in 24% bechem regime or normal autonomo tax bracket, despite the fact that all would be whether self employed or Freelancers. Bundle of thanks for giving us true information. I will now definitely think whether to apply or not.

[@christinaadavis]

There’s definitely constant changing information as well! It’s been hectic, as I find out more I’ll keep making updates!

[@beyondphotographs1534]

Great video! Have you found a US CPA to help you file the US taxes correctly with the Spanish tax treaty in mind? Thnx

[@christinaadavis]

I used ExpatFile for my taxes this year and they were super easy to use and helpful!

[@beyondphotographs1534]

thank you! what did you do about your autonomo taxes within Spain?@@christinaadavis

[@christinaadavis]

@@beyondphotographs1534 I have a spanish tax accountant who handles it all! it is 100% necessary here if you are self employed

[@savannahshi9829]

Hello Christina , how they know exactly how much you are being paid ? Do we have to receive our payments in a spanish card if i got paid to my Chinese bank card, just wondering how they can be sure of how much exactly i got paid? also the payment has to be done from a company, if paid by a person to me is ok?

[@christinaadavis]

Taxes are cross checked between countries especially with audits. I made a new updated video on my page explaining more about taxes! Also, for the €2600/month requirement those have to be paid by established businesses such as an llc or something

[@tremendisimous]

Can you wright things off? expenses, Office, etc. ? are you considered self employed?

[@jennifermartinez8562]

Hi! If I am self-employed and need to pay into the SS, let's say €500, would this cover my spouse and two children? Or do i have to pay for them individually as well, and what would that cost be? Thank you so much! ❤

[@itseveryday8600]

Do you know how capital gains tax work in Spain compared to the US?

[@MeghanCreative]

I would love a video explaining how you handle taxes. Do you have an accountant in Spain that you use and recommend? Do you also have to file in the USA (if so how do you handle that)? Do you use any specific software?

[@christinaadavis]

Hi! Yes, I will be making an updated tax video in the coming weeks so I can explain my process registering here and how the process works filing in the US and filing in Spain!

[@krispy3736]

Yes please @@christinaadavis

[@iqbalasad8]

Best update. Please guide me. I'm working as a freelancer over the Upwork as well as I've clients in USA. I'm working remotely from Pakistan. Is it possible I can get Digital Nomad Visa as I don't have any clients and work in Spain and other EU countries. Please guide me. Thanks

[@idoytvobina5951]

My friend come here in the Philippines.

[@danielleramirez6487]

Hi! Checking in since this was posted 2 months ago. Everything I read online (even from law websites) says it's 24% thanks to Beckhams law being applicable for freelancers. Since you're already in Spain I figured I'd ask if there is an update to this video since when it was posted things were still up in the air. Thanks!

[@christinaadavis]

So sadly freelancers aren't able to apply for the Beckham law, you will register as autonomo and be put into the normal spanish progressive tax brackets! There is only a special exception if you have a spanish freelance client who is deemed "innovative" and its very few categories

[@livinginlatam]

What about your US Taxes, can you write them off the Spanish ones or visa-versa?

[@mosta2]

Thanks Christina, what did you mean : "the social security is deductible on your taxes"

[@AlanEZ12]

I would wait until the end of MARCH when the Spanish authorities find the best pathway for solving the issue. In principle, they are trying to incentivise digital nomads to come so I would think they will try to make a better deal on the tax benefits. Also this was the original mandate of the law.

[@christinaadavis]

I definitely agree especially for self-employed/freelancers. Employees are pretty straight forward as they qualify for the 24% but I think self-employed/freelancers are best to wait until the final information comes out! But wanted to give an update as this is the information lawyers are receiving from UGE at the minute!

[@tonyforreal]

What that digital nomad residency , how many days am I allowed outta Spain so it won’t get annulled ?

[@christinaadavis]

You have to be within spain for no less than 183 days

[@anakinskywalkerii4350]

Is social security payment tax deductible?

[@AlexanderMiller-j9l]

I am looking at the digital nomad visa. Can this be advantageous for a UK LTD company director? I am also a owner and shareholder (50% with significant control) of the company that will employ me. Will I get tax advantages? I am unsure of the double tax treaty between UK and Spain. At the moment I pay myself mainly dividends. However, If I took my income 100% as salary, would I pay 24% tax only, or because the source of income is UK, will I also owe tax in UK? What would be the most tax efficient option for UK Ltd director / shareholder? Thanks!

[@TurboJohn1]

In a similar situation. Find any thing helpful ?

[@AlexanderMiller-j9l]

​@@TurboJohn1 Still a confusing one. You can get a DNV here in Spain as a Director (just get a cofounder or another director to write the letter, sign employment contract etc). Many people are getting approved this way. You can qualify for Beckham law (depending on your personal situation of course). However, it still isn't of much benefit, because the issue with being a UK ltd company Shareholder and Director is that you are considered an 'office holder', meaning you will have to pay tax on your earnings from that position/company in the UK, regardless where you are a resident. So any tax advantages where you live get thrown out the window really... .The double tax treaty will kick in of course - essentially, you're not really going to see much benefit from a tax perspective at all it seems. This is based on my current understanding, I may be wrong here. We will see when the tax man comes knocking I guess!

[@kedsonalves5811]

Video sent from heaven. Tyvm

[@SenorJuan2023]

So annoying that govts. refuse to make taxes simple.

[@TheMarvinChronicles]

Is this still accurate, any updates?

[@AoyamaIchome]

Christina, are you able to continue to contribute to 401K ? are you able to contribute to ROTH IRA ?

[@christinaadavis]

yes you still can!

[@mattheap81]

As an employed person earning a £59k (c.67k euros) basic salary, I pay a blended average of 18.7% in income tax in the UK. 0% for the first £12,570 20% on £12,571 to £50,270 40% on anything over £50,271 (to £150,000) A 24% flat rate (with no tax free allowance) sounds incredibly off-putting for someone who would otherwise be tempted to move to Spain.

[@christinaadavis]

Can understand that! You would probably pain a slight more increase. However, I think for alot of people they take the sacrifice for the Spanish lifestyle & sun!

[@mattheap81]

​@@christinaadavis Still hopeful its something to explore when the Spanish Digital Nomad Visa details finally become available here in the UK. After adding my annual bonus (of c.15%), the blended tax rate in the UK actually increases from 18.7% to 21.5%, so I guess to your point is worth the sacrifice.

[@hbmustangs]

Plus NI which is £5,500 ish. 9%

[@arcabuz]

This is modern land grabbing. I swear you’ll face hostile hosts. You will be direct responsible for the raise of rental prices

[@JustinPratt1]

But save the economy in the long run. Having a bunch of old people without at least as large of base as younger working people is critical. If a lot of countries don't do anything about this soon, a lot are going to go through some pretty terrible economic times.

[@Plebs_]

Modern land grabbing? Bit extreme.