Spain – A Special Place In The Sun And A Digital Nomad Visa Soon!

¡Hola! from Spain, a country of truly sssssuperlative offerings: sunshine, soft sandy beaches, sangria, salsa, and siesta! With so much to offer, it’s no wonder that Spain consistently ranks amongst the top places for tourists, expatriates and retirees.

Blessed with a mild Mediterranean climate, it boasts an enviable 300 days of sunshine with temperatures never swinging to any extreme. Plenty of incredible historical sights, many of which have world heritage status. Cuisine is outrageously delicious, healthy and diverse  from Indian, Chinese, Japanese, Italian, French and of course Spanish, to name just a few. 

It offers a laid-back lifestyle, low cost yet high quality of living with an excellent healthcare system and is politically and economically stable – all of which are reasons why my husband and I are spending a few months here to explore its suitability for a 2nd home. Since deciding not to renew our Malaysia My 2nd Home visa when it will expire in 2025, we are on the hunt for a new place to escape the depressing Dutch winter months.  

Spain has long been a favourite retirement destination amongst many Europeans. A couple can live comfortably on just €3,000 a month including rent, which explains the many retiree communities scattered mostly along the Mediterranean coast. A 250sqm 4 bed/4 bath villa nestled on the hills in Denia/Alicante with in-ground swimming pool and stunning view of the Balearic Sea costs approximately €400,000 or can be rented at less than €2,000/month. Coastal apartments with communal swimming pools and tennis courts on landscaped grounds rent for less than €800 a month, and even lesser as one heads inland.

There are 2 routes to secure long-term stay or for retirement offered to non-EEA (European Economic Area) residents:

• Non Lucrative Visa: which requires proof of self sufficiency as work is not allowed under this visa. Visa holders need to spend at least 183 days in Spain, automatically qualifying one as tax resident. 

• Golden Visa: requires investment of at least €500,000 which can be in property or business. Holders may legally work and only requires 1 day per year to be spent in Spain. 

I will write about these visas in another post as the conditions are more complex. For now, I’d like to share a new feather in the cap for Spain – the Digital Nomad Visa!

Digital Nomads

The term ‘digital nomad’ was first coined by Japanese technologist Tsugio Makimoto and David Manners in their book “Digital Nomad’, who predicted that modern-day technology and digital devices will give rise to a group of highly mobile workers who can effectively combine wanderlust with work on-the-move.

They foresaw that this segment of tech-savvy, highly mobile and adaptable knowledge workers, or ‘techpats’, will cause a war of talent amongst progressive countries clambering to offer incentives to entice them in an effort to drive digital transformation and heighten economic and social growth. This is indeed panning out as envisioned. These plug-and-play digital nomads would in turn take advantage of the right to stay and work in whichever country that catches their fancy.

Such travel-as-you-work lifestyle has big appeal for millennials who grow up in an internet age and subscribe to the philosophy of YOLO, seeking to maximise life experiences before they grow old. Digital nomad visas enable them to explore the world while making a living from highly sought-after expertise operating within the new economy.

Digital Nomad Visa

As its name implies, the Digital Nomad visa opens up a new pathway for tech-savvy remote workers to set up base in Spain. The aim is to foster a business climate that meets new market demands and working conditions. The application process for this visa promises to be faster, less bureaucratic and easier to qualify for.

It is hoped that the Digital Nomad Visa will help Spain recover from the economic impact of the pandemic and help to revitalise lesser-known villages and townships, some of which are offering as much as €2,500 cash incentives for relocation! The lower cost of living compared to more well-known cities gives impetus to snatch a slice of the colourful Spanish lifestyle at great value.

A collection of 30 villages and townships under the Red Nacional de Pueblos Acogedores para el Teletrabajo (National Network of Welcoming Villages for Remote Workers) has even committed to assign a local host to help each digital nomad settle in and connect to the community. How welcoming is that!

Conditions for the Digital Nomad Visa

The highly anticipated Digital Nomad Visa is awaiting parliamentary approval after  successful rounds of public consultations and is expected to be launched this year, likely under these terms:

• For citizens of non-European Economic Area (EEA) countries and holders of EU passports
• Work activities must be conducted remotely with proof of such relationship
• Be employed by non-Spanish companies or maximum 20% income cap if derived from Spanish companies
• 12 months with maximum 2 renewals of 1 year each bringing to total 3 years of stay
• Family members can be included 
• Lower tax at 15% compared to non-resident income tax at 25%.

A ‘Work from Wherever Index’ by online travel firm Kayak ranks Spain as the number 2 remote working spot, second only to Portugal, solidifying its position amongst digital nomads despite not having such a visa.

Why Consider a Digital Nomad Visa?

I think a digital nomad visa is a fantastic way to explore and assess the suitability of a country while still gainfully employed, as a precursor to relocating permanently or retiring in that country. 2-3 years living and working in a country beats visiting as a tourist, as one gets deeper understanding and more authentic experiences in all aspects of culture, environment and lifestyle. Nothing beats first hand experience for extended period. 

For those who retired young under the F.I.R.E or F.I.R.M movement, a digital nomad visa can be the second gust of wind for a new ‘career’, only this time round doing what you are really passionate about since financial security is a fait accompli. 

If thinking of a change in lifestyle, either permanently or temporarily, such a visa provides the best means to launch into a new environment with less stringent requirement while providing financial sustainability through remote work. You expand your horizon, make new friends, challenge your own limits and in the process, get to know yourself better. 

For those who believe in YOLO, then experiencing life to the fullest should rank high as a life goal. What better way than to take on remote work, relocate to a country of choice with an easy-to-secure digital nomad visa and plug into the vibrant remote-working community? While there, you can learn a new language or new skill such as classical Spanish guitar. Why not? The world is your oyster!

It’s impossible said pride

It’s risky said experience

It’s pointless said reason

Give it a try, whispered the heart.     ~ Unknown.

 

To hearty living,

Savvy Maverick

 

Disclaimer: The views expressed here are drawn from my own experience and do not constitute financial advise in any way whatsoever. Nothing published here constitutes an investment recommendation, nor should any data or content be relied upon for any investment activities. It is strongly recommended that independent and thorough research is undertaken before making any financial decisions, including consulting a qualified professional.