Question
I’m finding the Spanish tax policy confusing. Many sources say Spain Digital Nomad Visa foreigners are taxed at 24%, but we saw a webinar today with an attorney saying most people getting the Spain Digital Nomad Visa are not qualifying for this low rate and instead are paying much higher, sometimes 45%. Is this what people are seeing?
Answers
These are the answers of Spainguru’s Spain Digital Nomad Visa group members:
“Spain has a progressive tax rate. There’s just under 6k tax-free, then it’s as follows:
- Hasta 12.450 € un 19 %,
- De 12.450 € a 20.200 € un 24 %,
- De 20.200 € a 35.200 € un 30 %,
- De 35.200 € a 60.000 € un 37 %,
- De 60.000 € a 300.000 € un 45 %,
- and more than 300,000 € at 47 %.
The 24% flat rate is Beckham’s law, which isn’t related to the Spain Digital Nomad Visa. Some DNV holders might qualify if they’re employed, not self-employed, but it’s not beneficial if you earn under 60k.”
“No, Beckham’s law doesn’t apply to 1099 workers. You’d be considered ‘autónomo’ (self-employed), so the progressive tax rate applies.”
“Autónomo means self-employed or freelance. Most people on a Spain Digital Nomad Visa don’t have the option to apply as employees since it would require the employer to register and pay social security in Spain, which can be costly.”
“If you’re on a Spain Digital Nomad Visa, you need to be a tax resident, and the progressive tax rate usually applies. You could apply for Beckham’s if you’re employed and meet specific requirements, but most DNV holders are not employed due to social security requirements. Freelancers are generally not eligible for Beckham’s.”
“Amendments were made to tax policy in late 2023, expanding Beckham’s Law criteria. There’s limited practical experience with these changes, but it may broaden eligibility.”
“As a US citizen, you’d likely be a 1099 contractor, or ‘autónomo’ in Spain, which disqualifies you from Beckham’s Law. Many of us are paying around 45%. High earners get taxed at very high rates here.”
“The 24% tax rate was widely misreported when the visa launched. It actually applies to specific types of employees, not to most DNV holders.”
“You can only use Beckham’s Law for the low tax rate if employed. Self-employed individuals, like those with a single-member LLC, don’t qualify.”
“Beckham’s Law can apply for up to six years, but you must be an employee, not self-employed.”
Conclusion
Understanding tax obligations for Spain’s Digital Nomad Visa can be complex. While some believe the 24% flat rate applies broadly, Beckham’s Law only benefits employees who meet specific criteria and are registered to pay social security in Spain.
Most Digital Nomad Visa holders, especially those who are self-employed or ‘autónomo,’ are subject to Spain’s progressive tax rates, which can reach up to 45% for high earners.
Consulting a qualified tax expert familiar with the DNV’s requirements is essential for accurate guidance.
Join our community!
Make sure to join our dedicated Spain Digital Nomad Visa group here!
