European countries digital nomad work requirements - These are the requirements that a digital nomad must meet to telework in Spain and other European countries.

The diffusion of the telework model has grown exponentially in recent years and the pandemic has accelerated this process with which a new labor figure has been generated, that of the digital nomad. These teleworkers can live anywhere in the world thanks to the internet, but they have to face a series of requirements to be able to normalize their situation. And they are not the same depending on the country.

There are no official figures of how many people are currently residing in Spain under this label, but the growing business that the coliving and coworking sector is experiencing within our borders, even as a revulsive for Emptied Spain, as well as the boom it is having in places like the United States, give signs that their number is growing.

In any case, there is a long way to go and Spain currently only has 3 cities among the 75 best in the world for remote work. Are Madrid, in position 21, Barcelona, 29, and Palms, as far, at 63, according to a study prepared by the real estate portal Nestpick, a standout among the conditions that seek the nomads digital in a country which this granted a special visa.

"Very few countries have enacted laws designed to attract foreign workers. Instead, they only offer visas to those who accept jobs on site, thus losing the opportunity to attract people with high wages to their cities without the need to generate new jobs," said Nestpick.

European countries digital nomad work requirements

The executive led by Pedro Sánchez intends to reverse this situation and has approved at the beginning of July in the Council of Ministers the preliminary draft of the Startups Law, which aims to attract these digital nomads to our country through tax advantages and the creation of "a specific visa for people working in Spain for a foreign company", as announced by the Government.

The bill explicitly refers to" digital nomads " and stresses that a specific tax regime will be created for these people to be subject to non-resident income tax (IRNR).

The IRNR is a tax that taxes the income received in Spain by individuals and entities not resident in our country. That is, they do not stay on Spanish soil for more than 183 days a year. Currently the tax rate of the IRNR for people with annual income of up to 600,000 euros is 24%, but, once the law is approved, it will be reduced to 15% for a maximum period of 4 years.

In cases of digital nomads pocketing more than 600,000 gross euros per year, the tax will remain at 47%. To be taxed in this way, the requirements will be lowered, passing from 10 to 5 years the maximum period to have been a tax resident for the last time in our country. The period of enjoyment will also be extended, from 5 years to 10.

European countries digital nomad work requirements

However, these measures have not yet entered into force, so digital nomads residing in Spain have to continue to benefit from the same requirements as always.

As summarized by the law firm Perea Abogados, right now the best thing these foreign teleworkers can do is apply for a self-employment visa, which "authorizes its holder to reside temporarily in Spain for an initial period of one year, from entry into national territory and exercise a gainful employment or professional activity on their own".

The steps to qualify for this visa aimed at people over 16 years, pass by having an initial authorization of residence and self-employment. The resolution depends on the Delegation or Subdelegation of the Government of each province.

Once approved, the digital nomad will have to prove a valid passport, medical certificate, certification of having no criminal record, titles that demonstrate the applicant's ability to exercise the independent profession and sufficient economic solvency or bank guarantee.

The consulate of the teleworker's country must then forward the information to the authorities, who will approve or not approve the visa, which may be extended for another year. The process takes several months.

European countries digital nomad work requirements

Australia, Dubai and Estonia are 2 of the countries most valued by these international teleworkers. Melbourne, Dubai and Sydney top the ranking of best cities to be a digital nomad, according to the aforementioned study, which places Tallinn (Estonia) in fourth place.

These countries offer specific visas for digital nomads, as do others such as Antigua and Barbuda, Barbados, Cayman Islands, Iceland, Croatia, Georgia, Curacao, Dominica, Indonesia, Mauritius, Portugal, Mexico, Bermuda, Thailand or Costa Rica.

According to the specialized portal Planet Nomad, in almost all you need to have a company open abroad or work for it, earn a minimum and be a holder of a health plan or travel insurance. Some also require PCR testing for coronavirus.

Likewise, some countries have announced future legislation on this matter, as is the case of Colombia and there are others that opt for a visa for freelancers, which also includes this new profile of workers, such as Italy, Germany.

European countries digital nomad work requirements

Are the conditions of the surrounding countries very different from those of Spain? As stated on the pages of the European Travel Information and Authorisation System (ETIAS), yes and no. Here is a summary of what other countries in Europe are doing:

• Germany: it was the first country to create a visa for self-employed and there are two types of permits, that of artists and that of other professionals. To obtain them they must go to a tax office and present their accounts, bank statements and even experience. They also have to have customers on German soil.
• Croatia: has approved a specific visa this year and to obtain it you must have proof of distance work, sufficient annual income, medical insurance, proof of having no criminal record and a rental agreement, among others. The Mediterranean country gives them the exemption from paying income tax in the first year and the visa can be processed online.
• Estonia: launched its visa for digital nomads last summer, which allows them to work for a year from a company located abroad or with a remote position. Applications can be submitted through Estonian consulates and embassies abroad.
• Greece: has announced its specific visa, which will be for one year and can be processed online. The Greek Government plans to introduce tax incentives, which will tax only half of the income. The country is also implementing its 5G network.
• Iceland: It is designed to work for more than half a year and contemplates the possibility that digital nomads can take their families. To do so, they must provide proof of employment and proof of sufficient funds and medical coverage.
• Italy: does not have a specific visa but has had incentives since the beginning of 2020. They are offered a tax deduction of 70% on their income in the country. Digital nomads can also apply for a self-employment visa, similar to that of Spain, valid for 2 years. To obtain it they must contact the embassy or consulate of the country of residence and present proof of accommodation and another of availability of income.
• Norway: the country belonging to the Schengen Area, has a visa for digital nomads, but only for the Svalbard archipelago, in the Arctic. However, the visa is valid for life.
• Czech Republic: Does not offer a specific visa, but does offer a business visa for digital nomads. To apply, you must prove a business license, sufficient funds in the bank, medical insurance and proof of residence for one year. It must be managed at the embassy or consulates of the resident's country.
• Portugal: it has temporary residence visas that allow to be in the Iberian country more than one year and the stay can be extended. The differential feature of this visa is that they can be used as" a path to permanent residence", according to the ETIAS website.