The Spain Digital Nomad Visa has rapidly become one of the most popular residency options for remote workers, offering the opportunity to live in Spain while working for foreign employers or clients. However, a significant policy change has just emerged, and it has major implications for U.S. citizens—particularly W2 employees—who were planning to rely on the U.S. Certificate of Coverage (CoC) in their application.

In this article, we break down the latest update, explain how it affects applicants, and provide practical guidance on what to do next. If you are preparing your documents or planning to apply soon, this information is essential.

1. What Changed? Spain No Longer Accepts the U.S. Certificate of Coverage

Spanish immigration offices have stopped accepting the U.S. Certificate of Coverage (CoC) as part of the Spain Digital Nomad Visa application.

Until now, U.S. W2 employees could rely on a CoC to prove they remained covered by U.S. Social Security instead of registering into the Spanish system, which was a crucial requirement for this residency category.

Practitioners across the sector are already observing the impact of this shift. Several legal teams report that their W2 clients are receiving new requests for additional documentation, specifically demanding evidence that the Certificate of Coverage extends to remote workers—despite identical CoC documents being accepted in previous approvals.

Many professionals expect this issue to be addressed during the upcoming congress, where the new head of the UGE is scheduled to speak, although the session allocated to the topic may be brief.

What does this change mean?

• ❌ W2 employees can no longer use the Certificate of Coverage to demonstrate compliance with social security requirements.
• ❌ This affects both consulate applications and in-country applications.
• ✔️ 1099 contractors remain unaffected, as contractor-based applications do not hinge on Social Security coordination.

This marks a major shift because many U.S. applicants until now used a W2 employment structure, especially since at the beginning of 2025 it was announced that the CoC from the United States was accepted again by Spanish authorities.

2. Who Is Affected the Most?

U.S. W2 Employees

This group is the most impacted. Under the previous rules, W2 employees could present a CoC to avoid Spanish social security registration.

Without the CoC:

• Employers may now face Spanish employer obligations.
• Applicants cannot fulfill the required documentation as previously done.
• Some applications may be paused, delayed, or risk denial if submitted without adaptations.

U.S. 1099 Contractors

Good news:
If you apply as a contractor (self-employed), this change does not affect your application.

As long as:

• You have a contract with a U.S. company.
• You maintain your U.S. tax residency.
• You meet the income requirements.

…you can still apply under the standard criteria without any new obstacles.

3. Can W2 Employees Pivot to a 1099 Structure?

Yes—and in many cases, this is the most practical solution.

A U.S. W2 employee can pivot to a 1099 contractor structure, provided:

• The employer agrees to restructure the employment relationship.
• You sign a contractor agreement instead of an employment contract.
• Your employer acknowledges you work independently and do not provide services to Spanish companies.

Even small adjustments—such as contract wording, invoicing, and compliance language—can make the difference.

For many U.S. applicants, this is now the fastest and safest path to continue pursuing the Spain Digital Nomad Visa. Unfortunately, this setup makes the applicant potentially ineligible for the Spanish Special Tax Regime or Beckham Law.

4. Should You Pause Your Application? Yes—And Here’s Why

Given that immigration offices across Spain may interpret the new rule differently during the first days and weeks, we strongly recommend pausing your application for a few days—if you are a W2 employee.

Why pause?

• The change is very recent.
• Immigration offices often require time to unify criteria.
• You could avoid wasting time, money, and effort on a submission that may be rejected or delayed.
• More clarity is expected after the upcoming immigration congress.

5. When Will We Have More Information?

The yearly Spanish Immigration Lawyer Congress takes place on:

📅 27–28 November
📍 Spain

This annual event gathers:

• Leading immigration lawyers
• Representatives from the Ministry of Inclusion, Social Security, and Migration
• Practitioners who directly interact with UGE, Extranjería, and consulates

We expect:

• Clarifications on the reasoning behind the change
• Final positions regarding U.S. W2 applicants
• Updated interpretations from different regions
• Possible alternative options or transitional measures

Once the congress concludes, we will have more precise and authoritative guidance on how U.S. applicants should proceed.

Conclusion

The sudden change regarding the U.S. Certificate of Coverage represents one of the most important updates since the creation of the Spain Digital Nomad Visa. While frustrating for U.S. W2 employees, there are viable solutions—most notably restructuring into a contractor model.

Over the coming days, clarity will improve as Spain’s immigration institutions discuss and align their criteria. Until then, applicants should pause, evaluate their structure, and prepare for new documentation requirements.

This article is based on the contributions and experiences of Spainguru community members and is no legal advice. Consider consulting a legal expert for personalized guidance.