Question
I’m a Canadian employee and my employer is fine with me working from Spain under a Spain Digital Nomad Visa as long as there’s no tax implications, Social Security or paperwork to submit from his end.
I’m reading comments and articles as well the information in the consulate site but I’m still unclear. Does my employer need to register in Spain and pay SS? I will be applying in Toronto.
Answers
These are the answers of Spainguru’s Facebook group members:
“Yes, your employer would have to register and pay taxes and social security in Spain.
To make it work, you would have to become an independent contractor for them rather than an employee, you would be autónomo in Spain and be responsible for paying your own taxes and Social Security. Canada does not have the necessary type of agreement with Spain.”
“As mentioned, in order to apply as an employee, you need to provide the certificate of coverage from Canada (to cover the social security in Spain).
Unfortunately, until that moment, Spain is not accepting that certificate, hence all Canadians are applying as self-employed and not employees. There were some exceptions last year, but none in 2024.”
“No, it is a requirement to pay into the social security system. Private health cover is not enough.
You must change your employment status from employee to independent contractor and invoice your Canadian company as a client and pay all your social security and income taxes here in Spain. You will have to be independent for three months before you can apply.”
“There are three scenarios for applying the Spain Digital Nomad Visa:
1. You are employed and there is a reciprocal agreement where the certificate of coverage is accepted. You would then apply as a posted worker, pay social security in your home country and tax in Spain. I’m afraid as things stand, this doesn’t apply to Canadians. (It’s mainly UK that qualifies)
2. Your employer is happy to register to pay your social security in Spain. Most won’t as SS in Spain is higher plus its costs around 2k to register. You would also pay tax in Spain
3. You become freelance/self-employed and pay your own tax and social security in Spain. Paying for health insurance isn’t a way out. You have to be paying into a social security system somewhere. SS is so much more than health cover.”
Conclusion
For Canadian employees considering the Spain Digital Nomad Visa, the most feasible option often involves transitioning to an independent contractor.
This shift is necessitated by the lack of a reciprocal social security agreement between Canada and Spain, requiring individuals to handle their own tax and social security payments within Spain.
Employers generally are reluctant to undertake the registration and payment of Spanish social security due to high costs and administrative burdens. As a result, Canadians typically opt to apply as self-employed to meet visa requirements.
