Spain launched its long-awaited 'digital nomad visa' , here's who qualifies and how to apply
https://www.businessinsider.com/spa...-january-2023-tax-income-requirements-2022-11
Spain launched its long-awaited 'digital nomad visa' , here's who qualifies and how to apply
- Thread starter troubled soul
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https://www.businessinsider.com/spa...-january-2023-tax-income-requirements-2022-11
15% is better compared to 40% and up to 60% that you pay in most other European / EU countries.
But if you only have to pay 15% the first 4 years, then I don't get it why @Martin Everson and Co say it is not worth to relocate to Spain? If you can't relocate to the Bahamas or Dubai, but for other reasons you can relocate to Spain and just pay 15% that's would be sufficient for me?
But if you only have to pay 15% the first 4 years, then I don't get it why @Martin Everson and Co say it is not worth to relocate to Spain? If you can't relocate to the Bahamas or Dubai, but for other reasons you can relocate to Spain and just pay 15% that's would be sufficient for me?
It's actually quite nice for people it's aiming - high-paid professionals with nomadic lifestyle.
15% sounds a lot, but you need to consider real numbers. For example, you earn 300k per year, it's a lot of money for a good life, but not too much to start covering yourself with layers of corporations, offshores etc.
300k in Spain with 15% tax will feel much more than 300k in Dubai with zero tax - Spain is quite a cheap country after all.
It's not a good program if you have multiple CFC, it's not a loophole in Spanish tax nightmare, it's precisely what it is - people who earn a lot in and want to enjoy nice climate, good food, culture︀ and at the same time save on taxes.
15% sounds a lot, but you need to consider real numbers. For example, you earn 300k per year, it's a lot of money for a good life, but not too much to start covering yourself with layers of corporations, offshores etc.
300k in Spain with 15% tax will feel much more than 300k in Dubai with zero tax - Spain is quite a cheap country after all.
It's not a good program if you have multiple CFC, it's not a loophole in Spanish tax nightmare, it's precisely what it is - people who earn a lot in and want to enjoy nice climate, good food, culture︀ and at the same time save on taxes.
15% tax for a few years - but also a ton of bureaucracy, wealth taxes on worldwide assets, solidarity tax, high penalties even for simple mistakes on a form. If an individual runs a company alone, it can be taxed as personal income (sociedad interpuesta), strict CFC/PE rules - and that's all until you have to deal with the tax office, as they'll just freeze/empty your bank accounts if they decide you owe something, and good luck winning against them.
I'm just waiting to laugh at the announcement in a couple of years that Spain will start considering all the "remote workers" employers as now︀ having a PE in Spain.
I'm just waiting to laugh at the announcement in a couple of years that Spain will start considering all the "remote workers" employers as now︀ having a PE in Spain.
In addition to the Visa program, the new spanish Startup Law also includes improvements in relation to the old Beckham Law, so I think that EU citizens can make use of it instead of the Visa Nomad Programm.
It is not similar in taxation and period, 24% Tax , up to 6 years , but it should be easier to apply now.
The old beckham law limit of a maximum of 25% shares in a company is no longer applicable, so that︀ it is probably possible to set up your own active company in Spain and act︁ as an administrator/director, only pay 24% taxes on your salary for up to 6 years.︂ I read it often in relation with the new law.
So far, however, no spanish︃ tax lawyer has been able to give me precise information on how to use it︄ as a director with 100% shares of a new founded company in Spain.
That would︅ be a good thing since Spanish companies only pay 15% CIT for the first 2︆ years.
All in all not bad. But the bureaucracy, starting with the communication about the︇ advantages of the startup law, seems to be a hurdle.
It is not similar in taxation and period, 24% Tax , up to 6 years , but it should be easier to apply now.
The old beckham law limit of a maximum of 25% shares in a company is no longer applicable, so that︀ it is probably possible to set up your own active company in Spain and act︁ as an administrator/director, only pay 24% taxes on your salary for up to 6 years.︂ I read it often in relation with the new law.
So far, however, no spanish︃ tax lawyer has been able to give me precise information on how to use it︄ as a director with 100% shares of a new founded company in Spain.
That would︅ be a good thing since Spanish companies only pay 15% CIT for the first 2︆ years.
All in all not bad. But the bureaucracy, starting with the communication about the︇ advantages of the startup law, seems to be a hurdle.
Be careful operating a Spanish company 100% owned by yourself unless you have offices, local staff etc. Since covid, Spain started going after people with this setup and refunding corporate/dividend taxes and charging it all under income taxes. You can research "sociedad interpuesta". Before 2020 this was almost unheard︀ of in Spain but now quite common.
Just heard Italy is the same. There if you start a single member "LLC" they want the social contributions on all the company revenue, included the undistributed one.
Even if you take an average salary they'll not be happy with the social contributions from that, they want it also from all the company revenue. And if you are both administrator and active working on the company, you are forced to pay 2 times the social contributions.
The cherry on top is that all that︀ money goes to the drain as the pension system is "pay as you go", so︁ it's not like you're going to have it back when you retire, they actually will︂ use your money to pay the current pensioners... 100% ponzi scheme style.
Population is very︃ old in these countries, so when you'll retire nobody will pay yours and you'll end︄ up at best with a 1k/month pension lol
Utterly madness!
You better think all of︅ these things before getting locked in these countries (think about exit taxation too)
Even if you take an average salary they'll not be happy with the social contributions from that, they want it also from all the company revenue. And if you are both administrator and active working on the company, you are forced to pay 2 times the social contributions.
The cherry on top is that all that︀ money goes to the drain as the pension system is "pay as you go", so︁ it's not like you're going to have it back when you retire, they actually will︂ use your money to pay the current pensioners... 100% ponzi scheme style.
Population is very︃ old in these countries, so when you'll retire nobody will pay yours and you'll end︄ up at best with a 1k/month pension lol
Utterly madness!
You better think all of︅ these things before getting locked in these countries (think about exit taxation too)
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