Digital Nomad Visa in Spain and the tax advantages and opportunities for buying a property in Mallorca.

In an effort to attract international talent and encourage remote working in its country, Spain has introduced the innovative Digital Nomad Visa (DNV). This visa offers exceptional tax benefits and a range of opportunities for those wishing to relocate to Spain and, in particular, purchase property in places such as Mallorca. In this article we will explore in detail the Digital Nomad Visa, its tax benefits and the opportunities for buying real estate in Mallorca.

The digital nomad visa: A unique tax opportunity.

The Digital Nomad Visa (DNV) stands out as an option that offers unrivaled tax benefits compared to other Spanish visas. This visa is specifically designed to attract non-EU applicants and encourage telecommuting in Spain. Unlike other visas, non-EU applicants in Spain are treated as non-residents for tax purposes, while from an administrative perspective they are considered residents of the country. This opens the door to a number of significant tax benefits.

Despite its considerable tax advantages, the DNV has a maximum duration of five years. During this time, visa holders enjoy the status of tax citizens in Spain, which means extremely favorable tax treatment.

DNV tax benefits.

The tax benefits of the digital nomad visa are particularly noteworthy:

1. Tax exemption of foreign income and assets: DNV holders are not subject to tax on their income and assets held outside Spain, which includes all sources of income worldwide.
2. Fixed control rate of 24%: A tax rate of 24% is applied only to the first 600,000 euros of gross annual income earned during a five-year period through remote work in Spain for a foreign employer.
3. **Unlike Spanish tax residents, DNV holders are not required to file a tax return for 720 euros.
4. Exemption from property tax: DNV holders do not have to pay property tax.
5. Deferral of tax payment: You have the option to apply for deferral of first and second year tax payments without incurring penalties or interest for late payments.
6. Recognition as a tax resident in Spain: For other tax authorities, DNV holders are formally considered tax residents in Spain.

Requirements for applying for the digital nomad visa.

To obtain the DNV, applicants must meet a number of general and specific requirements. Below are the criteria required to apply for this visa:

General requirements.

1. Be of legal age: The applicant must be at least 18 years old.
2. Self-employed: Applicants cannot apply for benefits or be employed.
3. Take out private health insurance in Spain: This guarantees medical care during your stay in the country.
4. A clean criminal record: You must not have had a criminal record in the five years prior to applying.
5. Sufficient financial resources: They must prove that they are able to support themselves and their family during their stay in Spain.
6. Not be a citizen of the European Union: The DNV is intended exclusively for non-EU citizens.
7. Legal status in Spain: At the time of application, applicants must have legal status in the country.

**Special requirements

1. Residence outside Spain in the last five years: Applicants must not have resided in Spain for the last five years prior to application.
2. Remote work from Spain: The work activity must not be performed in a physical office.
3. Employment contract with a foreign company or self-employment: The main requirement is that you prove that you work for a foreign company or are self-employed but with a foreign company as a customer.
4. Income not derived from a permanent establishment in Spain: He must not receive income from a permanent business activity in Spain.
5. Official academic qualifications or work experience: Applicants must have a university, college, or professional degree or demonstrate at least three years of professional experience relevant to the position.

Advantages of the Digital Nomad Visa** Advantages of the visa for digital nomads.

The DNV offers a number of significant benefits to those who receive it:

1. Repeal of the 90/180 day rule: Visa holders can lift the restriction of stay in Spain to 90 days within a period of 180 days, which covers the Schengen area and the European Union.
2. Residence permit for five years: It is issued initially for one year, with the possibility of extension for two years at a time, up to a maximum of five years. In addition, the visa is extended to the family of the main applicant.
3. Remote work in Spain: DNV visa holders can work remotely in the country, encouraging telecommuting with laptops or desktops.

Opportunities to buy real estate in Mallorca.

Mallorca, an island in the Mediterranean Sea, is a desirable place for many to purchase real estate. With the Digital Nomad Visa, applicants have the opportunity to explore the real estate market of Mallorca and consider buying a property on this beautiful island. The options for buying property in Mallorca are diverse and range from luxury villas with sea views to charming homes in traditional villages.

Conclusion

The Digital Nomad Visa represents a unique opportunity for those who want to move to Spain and take advantage of the exceptional tax benefits. The opportunity to explore the real estate market in Mallorca makes this initiative even more attractive. If you are interested in working remotely in Spain and are considering buying a property in Mallorca, the DNV could be the ideal option for you.