Question about the Spanish Digital Nomad Visa
W2 workers, how have you successfully become an independent contractor for your company in order to apply for the Spanish Digital Nomad Visa?
Is the process difficult? Does cost extra for your employer?
Answers
These are the answers of some Facebook group members:
”You need to be terminated as an employee and sign a new contract. It’s a relatively simple process, but some careful attention should be paid to the wording of the contract. You’ll want to avoid the IRS reclassifying you as an employee. It doesn’t cost extra for the employer. In fact, you should negotiate that your fees equal the total cost of your employment (salary, SS and Medicare taxes, healthcare, etc.). Most employers are willing to do this”
”if you look at your pay stub you should see an amount withheld for FICA. Your employer pays that same amount, so you should add that to your contract amount. You should also look be able to see how much your employer pays for healthcare. Regarding VAT, you don’t have to charge it if your clients are based outside of the EU”
”I have to disagree with the statement that most employers are willing to do this”
”My experience is employers only care about the total cost. And if they’re willing to let someone switch to a contract role, they’re usually willing to continue paying the total cost”
In conclusion, according to Spainguru’s Facebook group members, the process of transitioning from a W2 worker to an independent contractor in order to apply for the Spanish Digital Nomad Visa appears to be relatively straightforward. It involves being terminated as an employee and signing a new contract with careful attention to its wording to avoid any potential IRS reclassification issues. While some employers might not be initially inclined to facilitate the switch, many are open to negotiating the contractor’s fees to cover the total cost of their previous employment, including salary, taxes, and healthcare. However, experiences may vary, and it’s essential for individuals seeking this change to communicate effectively with their employers to find mutually agreeable terms. Additionally, certain financial aspects like FICA withholding and healthcare contributions should be taken into account when determining the contract amount. Overall, becoming an independent contractor can be a feasible option for W2 workers pursuing the DNV, provided careful consideration and communication are employed throughout the process.
