In January 2023, Law 28/2022, known as the Startups Law, came into effect, introducing innovative measures across various areas, including immigration. This article explains how the law affects international remote workers or digital nomads, who can benefit, what the requirements are, and how to apply for residency in Spain.

What is a digital nomad under the new legislation?

The Startups Law introduces a specific legal framework for freelancers, self-employed professionals, and employees of foreign companies who wish to reside in Spain while working remotely.

Key Definition

A digital nomad is a worker authorized to live in Spain to carry out remote labor or professional activities for companies based outside Spanish territory, using exclusively IT, telecommunication, or other remote tools.

Who can apply for this residency?

Employment Categories

Applicants must fall into one of the following categories:

Remote self-employed workers:
- Cannot generate more than 20% of their income from Spanish companies.
- Must demonstrate contracts or clients with foreign companies.
- A professional relationship of at least 3 months prior to the application must be proven.
Employees of foreign companies:
- The hiring company must not have its headquarters in Spain.
- A prior employment relationship of at least 3 months must be proven.

Economic and Other Requirements

Economic Solvency: Contracts, payslips, invoices, or other documents that prove sufficient income for the intended residency period.
Medical Coverage: Through registration with the Spanish Social Security system or valid private health insurance in Spain.
Employment Documentation: An employment or freelance contract, and proof that the foreign company is solvent and operational for the last 12 months.

Additional Necessary Conditions

No criminal record for the last 3 years.
No prohibition on entering the Schengen Area.
Proof of qualifications, skills, or experience related to the professional activity.

What are the benefits of this permit?

Obtaining digital nomad residency in Spain provides multiple advantages:

Right to Reside in Spain: Legally live in Spain while working remotely.
Residency for Family Members: Spouses, registered partners, dependent children, or even dependent parents can obtain residency.
Mobility in the Schengen Area: Freedom to travel throughout Europe during the permit’s validity.
Counting Residence Time Towards Citizenship: Time spent under this permit counts toward eligibility for Spanish citizenship by residence.
Fast-Track Processing:

- 20 business days for residence applications through the Large Companies Unit (UGE) while in Spain.
- 10 business days for consular visa applications.

How to Apply?

1. From Abroad

Submit the application at the Spanish consulate corresponding to your location.
Obtain a visa valid for up to 1 year (or less, depending on the contract duration).
This visa allows the holder to live and work remotely in Spain for its validity period. Within 60 days before expiration, applicants can request a residence permit for digital nomads if the initial conditions remain unchanged.

2. From Spain

If legally present in Spain (e.g., on a valid stay or residence permit), you can directly apply for an initial residence permit of up to 3 years.
The residence permit’s duration is tied to the length of the employment or freelance contract.

What about Social Security?

For Employees

If there is no Social Security agreement between the company’s country and Spain, the foreign company must register with Spanish Social Security and enroll the employee in Spain.
This often deters companies due to the associated costs.

For Self-Employed Workers

Applicants must register with Spain’s Special Regime for Self-Employed Workers (RETA) after the permit is granted.
A commitment to comply with Social Security and tax obligations must be submitted with the application.

Key Points About Documentation

All documents issued in a third country must meet the following requirements:

Be legalized or apostilled (for countries under the Hague Apostille Convention).
Translated by a sworn translator authorized in Spain (from the official list by the Ministry of Foreign Affairs).

This guide outlines how Spain’s Startups Law makes it easier for digital nomads to live and work legally in one of Europe’s most attractive countries. Whether you are a freelancer or an employee of a foreign company, these opportunities open up a pathway to enjoy Spain’s rich culture while advancing your career remotely.