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Financial updates in Spain

By Chris Burke - Topics: Autonomo in Spain, Digital nomad visa Spain, Spain, Wealth Tax
This article is published on: 23rd November 2022

This month we cover the following topics (if there is anything you would like to understand more or wish to see covered in these articles, don’t hesitate to ask):

  • Digital Nomad Visa – Update
  • New Wealth Tax Implemented for those with assets over €3 million
  • New Autonomo payments from 2023

Digital Nomad Visa – Update
The Spanish Government has confirmed plans for its digital nomad visa scheme. The scheme will offer citizens from non-European Union countries the opportunity to live in Spain whilst working remotely for companies located outside the country.

The visas will be available for those who derive a maximum of 20 per cent of their income from Spanish firms and who work remotely for companies located outside Spain. The visas should bring vital help to the Spanish economic sector and that it will also help the country recover from the economic damages caused by the Covid pandemic.

Even though there has been no detailed information publicly and the law has not yet been 100% passed through Parliament, it has been publicised that the visas will be initially granted for a period of one year. There will then be the opportunity for this period to be renewed for more than five years, depending on the circumstance of the applicant.

Spain’s Economic Affairs Minister, Nadia Calviño, stressed that “the digital nomad visa will attract and retain international and national talents by helping remote workers and digital nomads set up in Spain.”

In order to benefit from Spain’s digital nomad visa, applicants must be able to show or prove that they have been working remotely for at least a year and be from outside the European Economic Area. They must also show that they hold a contract of employment or, if freelance, prove that they have been regularly employed by a company outside of Spain. Proof that they have enough money to be self-sufficient and have an address in Spain is needed too.

Spain is not the first country in Europe to instigate a Digital Nomad Visa programme. Estonia, Croatia, Portugal and Iceland already have a similar visa scheme, and in January this year the Government of Romania implemented a similar visa.

New Wealth Tax Implemented for those with assets over €3 million
Spain is set to implement a new wealth tax, its second, as the country looks for ways to raise funding to pay for social policies amid soaring inflation.

As reported by Bloomberg, those who have assets worth at least €3 million ($2.9 million) a year from 2023 will be affected, the Budget Ministry said in late September. Payments made against an existing wealth tax will be deductible from the new one, it said.

There are three ranges to the tax:

Assets Tax (Payable Yearly)
Between €3 and €5 million 1.70% payable on the value of the assets
Between €5 and €10 million 2.10% payable on the value of the assets
Over €10 million 3.50% payable on the value of the assets

23,000 people will be affected by the new tax and is expected to raise around 1.5 billion Euros. In 2024 another 204 million is expected to be raised by an increase of up to 2 percentage points on incomes above 200,000 Euros a year. There will be tax reductions for lower earners which is estimated to be worth about €1.88 billion over two years.

New Autonomo Payments from 2023
Self-employed workers (Autonomo’s) in Spain will start paying new monthly social security fees which will be based on the amount they earn. The changes will be brought into force from January 2023.

For those newly self-employed and under the age of 35:

Time Period Amount Payable
The first 12 months €60 (80% reduction)
Month 13 – Month 18 €146.97 (50% reduction)
Month 19 – Month 24 €205.76 (30% reduction)

This flat rate is a measure to promote self-employment that consists of paying a reduced monthly Social Security contribution as a self-employed person for two years.

For those who have been self-employed for two years or more:

Amount earned per month (€) 2023 2024 2025 2026
< 600 €281,50 €269,30 €257,00 €244,80
600 – 900 €281,50 €269,30 €257,00 €244,80
900 – 1.125,90 €293,90 €293,90 €293,90 €293,90
1.25,90 – 1.300 €351,90 €351,90 €351,90 €351,90
1.300 – 1.500 €351,90 €413,10 €413,10 €413,10
1.500 – 1.700 €351,90 €413,10 €474,30 €474,30
1.700 – 1.900 €351,90 €413,10 €474,30 €535,50
1.900 – 2.330 €351,90 €413,10 €474,30 €535,50
2.330 – 2.760 €351,90 €413,10 €474,30 €535,50
2.760 – 3.190 €351,90 €413,10 €474,30 €535,50
3.190 – 3.620 €351,90 €413,10 €474,30 €535,50
3.620 – 4.050 €351,90 €413,10 €474,30 €535,50
>4.050 €351,90 €413,10 €474,30 €535,50

In summary, the current minimum fixed payment of €294 will be changed to a progressive system of 13 instalments, depending on income. This will be introduced over 9 years. It’s important to note that these changes have not yet been finalised and there are still some details to be agreed.

If you would like any more information regarding any of the above, or to talk through your situation initially and receive expert, factual based advice, don’t hesitate to get in touch. You can book an initial consultation via my calendar link below or email/send me a message.

Article by Chris Burke

If you are based in the Barcelona/Costa Brava area and would like to have an initial, complimentary face to face video call or arrange a time to visit Chris in his office in central Barcelona, contact Chris on chris.burke@spectrum-ifa.com or whatsapp +34 689915730. If you are based in another area within Europe, please complete the form below and we will put a local adviser in touch with you.

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