British “digital nomads” are set to be offered huge tax breaks to work from home in Spain.
Madrid is planning a new visa programme that will allow people working for British companies while living in Spain to pay almost half as much tax as Spaniards.
British workers lost their automatic right to live, work and study in EU countries after Brexit but could now be tempted to flee the UK – which faces years of high taxes, recession and unaffordable housing – for sunnier climes.
“This is not about bringing in people like tourists. The aim of the digital nomad scheme is to accelerate the processes of knowledge transfer in Spain because talent attracts more talent,” Carme Artigas, the secretary of state for digitalisation and artificial intelligence, told The Telegraph.
The new scheme – which is due to begin in January – will offer foreigners a one-year visa to work for employers outside Spain while living in the country.
After the first 12 months, they will be able to gain residency for up to five years or, in some cases, the permanent right to stay in Spain.
Qualifying for digital nomad status will take no longer than a month. Applicants must prove they can work completely remotely for an employer based outside Spain and that they are qualified professionals – but they only need to earn a minimum of £860 a month, the same as Spain’s minimum wage.
Holders of the digital nomad visa will be able to pay tax at a special non-resident rate.
That will be levied at between 23 and 26 per cent on medium and high incomes, compared to between 30 and 45 per cent under normal Spanish income tax rules.
The scheme forms part of what Madrid says is the world’s first dedicated package of legislation for technology start-ups.
The main thrust of the legislation is to encourage tech companies to set up shop in Spain and encourage angel investors to back start-ups.
Meanwhile, a new one-year internship residency visa is planned to attract foreign academic talent.
Read more via The Telegraph
