2024 has been a rollercoaster for the Spanish Digital Nomad Visa.
At the start of the year, things were pretty straightforward—meet the income requirement, have a clean criminal record, and you were good to go. Even if you didn't meet every single requirement, let's just say, the more creative applicants usually found a way.
As the year went on, things tightened up, and the UGE started asking for more official proof to back things up. It’s definitely not as straighforward as it used to be!
Our Experience at Move To Spain Guide
In 2024, our team at Move To Spain Guide submitted 319 applications for the digital nomad residency.
170 of these were for main applicants and the remaining 149 were for family members.
Out of these applications, 300 have now been resolved and 19 are still awaiting a response.
How many applications were successful?
291 of our applications were approved first-time (97%).
We are really proud of this statistic. Our application system involves giving clients a detailed list of exactly what is required, including templates for the important documents, and we work with you until both sides are happy and ready to go.
Only 9 first-time applications weren't successful. Four of these applicants, a family of 4, still had Schengen days left (so important!) so we were able to help them to alter their set up and do a second application. This involved many late nights at the office to get things done in time!
The remaining 5 unsuccessful applications are more recent - all during the month of December 2024 when the UGE quietly changed the requirements for proving work experience. Honestly, these denials were very frustrating (and sometimes really upsetting) because, in every case, it felt unfair—the applicants didn't have enough time to adapt to the new rules. We are helping each and every applicant to turn things around, whether through an appeal or a reapplication.
At Move to Spain Guide, we’ve got our clients back from start to finish. We’re not the kind of company that cuts and runs if things don’t go as planned. No money-back guarantee so we can send you away wishing you “good luck” here – we’ll stick with you until you’re happily settled in Spain, doing whatever it takes to make it happen.
How many requests for further documents?
Earlier this year, our application process was so smooth that we almost never got requests for further documents for our applications.
This all changed in December when the UGE altered the rules (without telling anyone...). Since then, we've been asked for extra documents for nearly every application, usually related to the work experience requirement.
We've been so busy over Christmas making sure that all of our clients are aware of the new requirements and have time to request the documents, so we expect to get back to the way things were before: when a request for further documents was a rare occurrence.
Changes to the Digital Nomad Residency during 2024
Here are the specific changes that we've noticed:
One-person companies are being asked for extra documents
This was the first big step in tightening things up.
At the beginning of 2024, if you were a business owner you could create an artificial set up for the application process by transferring a big sum into your business and ‘paying’ yourself a salary above the income threshold for three months before the application date.
The UGE had no way of knowing if your company was actually a viable business that could support you long-term while living in Spain so that you wouldn't become a burden on public services. And, let’s be honest, the whole idea behind Spain’s digital nomad visa is to attract high-earning nomads who’ll contribute plenty in taxes.
It was only a matter of time before the UGE caught onto this loophole. Nowadays, if they see from the documents that the applicant is the sole owner of their ‘client’ or ‘employer,’ they’ll ask for extra proof to make sure the company is a legit ongoing business.
Work Experience
It used to be pretty easy to meet the requirement for a degree related to your job or 3 years of relevant experience.
Even if you didn't have the required 3 years of professional experience, a quick letter from a friend's business, confirming you worked there during certain dates would do the trick. The more unscrupulous could even create a fake degree from a made-up university and send it to the UGE, hoping they wouldn’t have time to check every single educational establishment out there.
But, as you might’ve guessed, things have changed. Now, the UGE wants solid proof. That means you need to show you were officially registered as an employee or contractor at the company providing the work experience letter. And for degrees, they’re asking for an apostille to confirm it’s legit.
Our predictions for changes in 2025
Social Security Certificates
More countries (including Canada) are joining the short list of countries who issue social security certificates of coverage which allow the applicant to apply for the digital nomad residency as an employee. Sadly, the US certificates of coverage still don't seem to be accepted as far as we know.
Almost all of the employees who’ve applied with us (so far) are UK applicants with A1 certificates.
If you’re not familiar, A1 certificates are issued by HMRC for ‘posted workers’—basically, employees sent abroad by their companies for up to 2 years.
From what we’ve seen in our Facebook group, it doesn’t look like you can extend an A1 beyond the 2-year mark.
So, what can UK employees do after that? There are a couple of options:
- Head back to the UK for a short period (seems like it might need to be around 2 months, but we’re still confirming) and then apply for a new certificate under a new ‘posting.’
- Switch to self-employment.
- Your company could pay you through a Spanish payroll system, which would let you keep your Beckham law status (contact us for more information on this).
Beckham Law
The Beckham Law is a legal way for high earners to pay less tax while living in Spain, so it’s definitely something that catches the eye of the tax authorities. We predict that there will be more investigations as those who were accepted during 2024 file their first tax returns.
Many people assume that once you are accepted, you are good. However, it's important to understand that tax is all about self-declaration. When you apply for the Beckham law, you are declaring that you meet all of the criteria - there is no check done to make sure that you do. As long as you attach the appropriate evidence with the application, you'll probably be accepted.
What most don't realise is that the Hacienda can open an investigation up to 4 years after the tax year has ended. It's at this point that they will check if you really did meet all of the criteria.
The 2023 update of the Beckham Law left a lot of room for interpretation, which only adds to the confusion as tax specialists struggle to understand it themselves. It has already been reported in the press that there’s been a wave of tougher inspections during the end of 2024 compared to previous years, and this is likely to continue in 2025.
It is crucial to get solid legal advice and make sure that you understand and are sticking to the rules. As the first tax return has not been done yet, there is still time.
One-Person Companies
Many digital nomads don’t realise that running a foreign company while living in Spain can be dangerous.
Let’s say Stan, an IT consultant, moves to Spain on a Digital Nomad Visa (DNV). He uses his UK-registered limited company, which he owns 100%, for the application and continues to work online from his home in Alicante.
Since Stan’s company has no employees or assets besides him, his company is essentially being run from Spain. According to most tax treaties (including the one between the UK and Spain), corporate taxes should be paid where the company is actually managed. In this case, that’s Spain. This means Spain is missing out on the 24% corporate tax Stan should be paying to the Agencia Tributaria instead of to HMRC.
Want to avoid this issue? Make sure there’s a solid business reason for your company to be based in its home country. Having employees, assets, or an office can help, and going back to that country to make all crucial decisions through documented board meetings is crucial. If you’re a consultant like Stan and that’s not an option, think about invoicing your clients directly as a Spanish autónomo and skipping the company setup altogether.
Political Issues
In the second half of 2024, Spain has seen a massive rise in anti-tourism sentiment. Locals are being pushed out of their own towns and cities because of skyrocketing rents and a lack of housing as everything is turning into tourist apartments.
Could this frustration start targeting digital nomads too, as it has in Portugal? Only time will tell.
The end of the Golden Visa
After months of back-and-forth and a Senate veto, it’s now official—Spain's Golden Visa scheme is getting the axe. On December 19, Congress gave it the final approval with an absolute majority. No more doubts, the Golden Visa program will be gone very soon.
Before the Spanish Senate’s veto, it looked like the golden visa would stop being available to new applicants starting January 2025. But with this last-minute snag and the holiday season coming up, the deadline is likely to be pushed back slightly.
Wishing all of our clients, friends and Facebook group members a happy new year and thanking you for your support in 2024.
WE ARE ON A MISSION TO ENSURE YOUR NEW LIFE IN SPAIN IS A SUCCESS
Moving to Spain can be the best decision you've ever made, or it can go very wrong.
The better prepared you are, the smoother the transition will be. And we are here to help - at MOVE TO SPAIN GUIDE, our mission is to make Spain feel like home.
Our services include tax, immigration, investments, corporate, and estate planning. We guide you through a new culture into your new life.
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