Spain proposes 'digital nomad' visa to attract talent to its shores

Spain is planning to offer digital nomad visas to encourage non-European Union (EU) citizens to come to the country and enjoy working in the sun. The law is yet to be passed but the Spanish government is intending to dole out lucrative incentives to make the proposal all the more enticing.

Digital nomads or remote workers referto individuals who travel remotely and work using technology and internet. They do not have a set base and work in public libraries, cafes andco-working spaces. Countries across Europe are luring them with visas to boost tourism.

Reportedly, the digital nomad visa will be offered to those who are self-employed or working remotely or employed by non-Spanish companies. The applicantswill need to be outside the European Economic Area and should be able to furnish a contract of employment to demonstrate they have been working remotely.

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While the more intricate details are yet to be hammered out, the Spanish government is expected to grant a residency permit for a year, which can be renewed for up to five years, depending on the applicant's record. Spouses or childrenwill also be eligible to join the applicant.

Additionally, for the initial four years, the individual will receive a 10 per cent relaxation in the taxation scheme. According to Spanish media outlets, the new residents will be taxed at 15 per cent, compared to the standard 25 per cent rate.

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This particular visa scheme will come under the propsed 'Startup Act', the reports said. The main aim of the Startup Act is to develop a thriving 'startup ecosystem' in Spain and simultaneously, make it a premier destination for entrepreneurs.

If the Spanish government does come up with the planned proposal, it will join the list of European countries such as Croatia, Estonia, and Hungary to have issued some version of digital nomad visa.

While the aforementioned countries have a minimum earning requirement, the Spanish government has not given any indication of adding such a caveat yet. However, the visa applicants might need to prove that they will earn enough to sustain themselves.

(With inputs from agencies)

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