First-year budget for a remote worker paid from abroad

Key rules

• Income threshold: You must show monthly income of at least 200% of the SMI, plus 75% for a first dependant and 25% for each further one.
• Spanish clients: As a freelancer, no more than 20% of your income can come from Spanish clients.
• Tax residence: Spending more than 183 days in Spain in a calendar year makes you a tax resident, taxed on worldwide income.
• Newcomer tax regime: You can apply for a flat-rate non-resident regime for the arrival year plus five years if you were not a Spanish tax resident in the previous five years.

The short version

Your income is in one currency and your costs are in euros. Build the budget around that gap, and keep a cushion for exchange-rate swings. The digital nomad visa also sets a minimum income you must prove, so check that first.

The income threshold you must meet

You must show income of at least 200% of the Spanish minimum wage (SMI) every month. For a first dependant, add 75% of the SMI. For each further dependant, add 25%.

The SMI changes each year. Ask the Spanish consulate or the Spanish large-business unit that handles these visas for the current monthly figure before you plan around it.

Your clients matter too. The visa suits people who work for companies outside Spain. As a freelancer, no more than 20% of your income can come from Spanish clients. If most of your work is for Spanish employers, this route is not for you.

Euro-cost exposure

Rent, food, utilities, health insurance and tax will all be in euros. If you are paid in another currency, a weaker currency month means a smaller budget.

• Keep several months of euro costs in a euro account.
• Convert income in regular amounts, not all at once.
• Count one-off setup costs: private health insurance with full cover, a criminal record certificate, translations and the first rent deposit. The documents list below shows what you must gather.

Tax and social security

Tax residence starts if you spend more than 183 days in Spain in a calendar year, or if your main economic interests are in Spain. Residents are taxed in Spain on worldwide income. So do not budget as if you will be taxed as a non-resident while living here.

A special regime for newcomers can tax you as a non-resident on Spanish-source income at a flat rate. It runs for the arrival year plus five years. It is for people who have not been Spanish tax residents in the previous five years, and you must apply to the tax agency. Digital nomad visa holders can use it. Work out your tax both ways before you decide.

For social security, you are normally covered in the country where you physically work, which is Spain. An A1 certificate can keep you in your employer's country's system in some posting or multi-state telework cases. With a non-EU employer, a bilateral agreement or Spanish rules apply. Ask your employer and a Spanish tax adviser which applies to you, because it changes what you pay each month.

Coworking and internet

Coworking prices vary by city and operator. Madrid and Barcelona cost the most. Valencia, Málaga, Seville and mid-size cities are cheaper, and small towns cheaper still. Hot desks cost less than fixed desks. Many spaces sell day passes and give discounts for longer commitments. Get current prices from the operators before you budget.

If you work from home, add a home internet line to your monthly costs and ask the landlord whether fibre is installed. A coworking desk can replace home internet for work, but you will probably still want a home line.

Your first year in order

The timeline below shows the steps, from the three months of working history to the later move to a longer permit. Use it to place each cost in the right month.

Timeline and deadlines

• Make sure you have worked with your company or companies for at least three months: before you apply for the visa

• Apply for the digital nomad visa, which is granted for up to one year: once your documents are ready

• Apply for the special tax regime for newcomers if you qualify: after you arrive and start living in Spain

• Track your days in Spain, because you become a tax resident after more than 183 days in a calendar year: throughout each calendar year

• Move to a residence permit of up to three years, renewable up to five: after the first year on the visa

Documents you need

• A work contract or service agreement showing you work remotely for a company outside Spain, or for your freelance clients

• A letter from your company or companies confirming the working relationship, which must have lasted at least three months

• Proof of your university degree or professional qualification, or proof of at least three years of relevant experience

• A clean criminal record certificate

• Private health insurance with full cover

Frequently asked questions

Can I use the digital nomad visa if most of my clients are in Spain?

No, the digital nomad visa is for people working for companies outside Spain, and freelancers can take Spanish clients for no more than 20% of their income. If most of your income comes from Spanish clients, ask the consulate which residence route fits you instead.

Do I need a degree to qualify for the digital nomad visa?

No, a degree is not the only way in: you need a university degree or professional qualification, or at least three years of relevant experience. You also need to show at least three months of working with your company or clients.

Can I be taxed as a non-resident while living in Spain on this visa?

Yes, but only if you qualify for the special regime for newcomers (the Beckham regime) and apply to the tax agency.

How much does a coworking desk cost in Spain?

It depends mainly on the city: Madrid and Barcelona cost the most, while Valencia, Málaga, Seville and mid-size cities are cheaper, and small towns cheaper still. Hot desks cost less than fixed desks, and many spaces sell day passes so you can try one before committing to a longer plan.