Spain Cuts Taxes For Digital Nomads To Attract International Talent
Spain News
Published: 13 December 2021 15:38 CET
Spain announced on Friday that it will be cutting taxes for ‘digital nomads’ in order to attract more international talent and online entrepreneurs.
The new bill which was approved on Friday will aim to boost the country’s start-up culture and would see the basic rate of income tax reduced from 25% to 15% over the first five years for those looking to make the move.
Digital Nomads is the term used for remote workers who have the ability to conduct their work online from anywhere in the world. The practice has become increasingly popular due to the pandemic which forced many people to adapt and work from home.
The new measures will mean that foreign workers would be entitled to a non-resident tax status to help lower their start-up costs in Spain.
Via their Twitter page, the country’s Ministry for Economic Affairs said, “Are you an entrepreneur and want to set up a #Startup In Spain?
“We are going to make it easy for you. The Government has approved the bill #startups. With its entry into force, you will have access to important tax incentives, whether you are a company, an investor or a worker.”
The ministry added that the new laws would help “remote workers and ‘digital nomads’ to set their businesses up in Spain”.
The tax incentives will apply to both salaried and self-employed digital nomads who choose to work from the country.
The initiative will also apply to Spanish nationals who have been living abroad for more than five years and wish to return home to work.
With many digital workers now able to work from home due to the pandemic, many are now considering the possibility of moving to sunnier shores to find a better work-life balance.
Spain is not the first country to offer such incentives to entrepreneurs.
In 2021, Croatia passed a law that offers non-EU foreigners a one-year residence visa. Digital nomads there are also exempt from paying income tax during the 12 month start-up period.
Georgia also created a visa to allow workers earning less than $2,000 (£1,700) a month to live in the country for a year.
Other countries such as Thailand, Costa Rica and Iceland have also come up with similar initiatives to attract digital nomads.
Source
https://www.lavanguardia.com/economia/20211210/7919187/ley-startups-proyecto-consejo-de-ministros-claves.html
https://www.express.co.uk/travel/articles/1535354/british-expat-spain-tax-cut-digital-nomad
https://spanishnewstoday.com/spain_reduces_taxes_for_digital_nomads_1697798-a.html
