Requirements and benefits of the Golden Visa, Digital Nomad Visa, and Beckham's Law in Spain

Spain has become an increasingly attractive destination for investors, digital nomad professionals, and elite athletes, thanks to its special visa programs and fiscal advantages. In this article, we will explore three prominent options: the Golden Visa, the Digital Nomad Visa, and the renowned Ley Beckham. Discover the requirements and benefits of these distinct pathways that have turned Spain into a preferred destination for those seeking a new experience in a welcoming and opportunity-filled environment.

As the world becomes more globalized, opportunities for living and working in different countries have become increasingly attractive for many individuals. In the real estate sector, there are three types of visas that have gained popularity among those interested in international mobility: the Golden Visa, the Digital Nomad Visa, and the Ley Beckham. Below, we will examine the key differences between these visas, their requirements, fiscal advantages, and their impact on the real estate market.

Golden Visa - What it is, Requirements, and Fiscal Advantages in Spain:

The Golden Visa is a program that offers residency to foreign investors in exchange for investing a certain amount of money in the destination country. Requirements and the minimum investment amount vary depending on the country, but they generally apply to real estate purchases, business investments, or government bonds. This type of visa is often attractive to those seeking investment opportunities and stable residency in a European Union country.

Some of the essential requirements to obtain the Golden Visa in Spain include:

• Not being an EU national.
• The investor applying for the Visa must be of legal age (18 or older).
• Contracting private medical insurance in Spain.
• Having no criminal record (5 years prior to the application).
• Being self-employed (guaranteeing that you will not apply for benefits).
• Not being in Spain illegally at the time of visa application.
• Having sufficient financial means to support oneself and one's family during their stay in Spain.
• Real Estate Investment: To qualify for the Golden Visa in Spain, you must make a significant investment. The minimum investment amount varies depending on the visa category. For example, to qualify, you need to invest at least 500,000 euros in a real estate property in Spain.
• Business Investments: In addition to real estate investment, you can also qualify for the Golden Visa if you make a significant investment in a business in our country. This could be in the form of shares, creating new jobs, etc.
• Investment Funds and Bonds: Another option to obtain the Golden Visa is to invest in Spanish investment funds or purchase Spanish government bonds for a minimum value of 1 million euros.
• Venture Capital Funds: By investing a minimum of 1 million euros in a Spanish venture capital fund, you could also qualify for the Golden Visa.
• Bank Deposit: It's also possible to make a bank deposit in a Spanish financial institution for a value of at least 1 million euros to obtain (or be eligible to apply for) the visa.
• Entrepreneurs and Projects of General Interest: If you have a business project considered of general interest in Spain, you may qualify for the visa if the feasibility and positive impact of the project on the country's economy is demonstrated.
• Family Reunion: Finally, family members of an investor who has already obtained the Golden Visa can also apply for it, as long as they meet the established requirements.

It's important to note that the Golden Visa in Spain grants an initial one-year residency, which can be renewed for two years. After five years of residency in Spain, it's possible to apply for permanent residency or Spanish citizenship, provided certain additional requirements are met.

It should be mentioned that laws and requirements for the Golden Visa may be subject to changes, so it's advisable to consult with a legal or immigration professional to obtain the most up-to-date and accurate information before proceeding with the application.

Digital Nomad Visa - What it is, Requirements, and Fiscal Advantages in Spain:

The Digital Nomad Visa is a recently created visa designed for remote workers or digital nomads who wish to temporarily reside in a foreign country while working remotely for their employer or engaging in online activities. This visa allows workers to embrace a nomadic lifestyle while enjoying the beauty and culture of a new location. Often, countries offering this type of visa seek to attract highly skilled professionals and contribute to the local economy through such workers.

Requirements to apply for the Digital Nomad Visa in Spain:

• You must demonstrate that you are employed by a foreign company or that you are self-employed (with a foreign company). This is the main requirement.
• You will work remotely from Spain (it is not an office job).
• You must demonstrate that you hold an official academic qualification (such as a university degree, business school diploma, or professional qualification), or prove that you have 3 years of work experience that qualifies you for the position.
• You need to prove that you have at least 3 years of work experience.
• You must not have resided in Spain during the previous 5 years.
• You must not earn income from a permanent establishment in Spain.

Fiscal Advantages of the Digital Nomad Visa in Spain:

• The most notable advantage is that all income and assets held abroad are not subject to taxation. In other words, any worldwide source of income is exempt from taxes (similar to the popular tax regime for non-residents in the United Kingdom). For example, if you have 8 million euros in the U.S., they will not be taxed in Spain, as you are considered a non-tax resident (legal fiction) from a fiscal perspective. However, in practice and for administrative purposes, you are treated as a resident in Spain for all intents and purposes.
• Holders of the Digital Nomad Visa are only taxed strictly on the income they earn while working remotely in Spain for a foreign employer. They will pay a fixed tax rate of 24% on the first 600,000 euros of annual gross income during a five-year period.
• They are not obligated to file a Form 720 tax declaration (unlike Spanish tax residents).
• They are not required to pay Wealth Tax (unlike Spanish tax residents).
• They can request a deferral of tax payment for the first and second years without incurring penalties or late interest charges (as is customary).
• For the purposes of other tax authorities, you are formally considered a tax resident in Spain.

The Digital Nomad Visa aims to impact high-level professionals who wish to move to Spain, alone or with their families, and thus enjoy better living conditions. As the reader may be surmising, with a Digital Nomad Visa, you achieve the best of both worlds: you enjoy all the benefits of being a legal resident in Spain, while fiscally being treated as a non-resident and paying minimal to no taxes.

Beckham's Law - Its Origin and implications

The Beckham's Law, known as the "Impatriates Law" in Spain, (initiated in 2003 coinciding with the signing of the football player for Real Madrid), is a special tax regime designed to attract highly skilled foreign professionals and elite athletes. This legislation allows beneficiaries to be taxed more favorably than Spanish citizens during the first six years of residence in Spain. Although this law is not directly linked to property purchases, it can have an indirect impact on the real estate market, as some beneficiaries may choose to invest in real estate during their stay in the country.

Fiscal Benefits in Spain Thanks to the Ley Beckham:

• Taxes on income in Spain. The first 600,000 euros obtained from a source within Spanish territory will be taxed at a fixed rate of 24% (instead of the standard top marginal rate of 47%). This results in significant tax savings, even for incomes exclusively derived from Spanish territory.
• International incomes. However, it is in this area that the fiscal regime of Beckham's Law truly stands out and makes a difference. Spanish tax authorities only impose taxes on income generated within Spanish territory. Therefore, any other source of income worldwide is exempt from taxation (similar to the popular non-resident tax regime in the United Kingdom). It's important to highlight that this unique fiscal advantage is highly attractive for individuals with significant foreign incomes, assets, and interests.
• Exemption from filing Form 720 regarding income.
• Exemption from presenting the wealth tax.
• Period of five years plus one. Due to its exceptional fiscal benefits, the government has set a time limit to enjoy these incentives. They apply during the fiscal year of relocation and extend for the subsequent five years (a total of up to six years).

In summary, each of these visas offers different advantages and opportunities for those seeking to reside in a foreign country. The Golden Visa is ideal for investors looking for stability and business opportunities in the European Union. The Digital Nomad Visa appeals to remote workers and digital nomads who want to experience new places while maintaining their work style. Finally, the Ley Beckham is attractive to highly skilled professionals and elite athletes seeking fiscal benefits in Spain.

In the real estate market, these visas can influence demand and preferences of international buyers, and it is essential to be informed about the regulations and opportunities they provide in order to make well-informed decisions when investing in properties. If you're interested in exploring these options and understanding how these visas can impact your real estate investment, it is advisable to consult an expert in international legal and fiscal matters related to the real estate sector for personalized guidance.