Spanish Digital Nomad Visa: Do I need to keep meeting the minimum income requirements – and what happens if I don’t?

Usually, we keep away from sharing anything that we haven't verified for ourselves in order to not cause panic, but this is one we thought we should let you know about.

The Unidad de Grandes Empresas (UGE) is definitely toughening up the requirements for the Spanish Digital Nomad Residency, and it is now tougher than ever to be accepted. However, there are now clear signs that they are also monitoring people during their stay, rather than just waiting for renewal time.

Someone recently posted the above screenshot in our group showing an official Extinction Notice. It wasn't because their residency expired; it was because the government checked their records mid-year and found they weren't meeting the financial or activity requirements.

The Reality Check: Don't Panic

Before you lose sleep, take a breath. Out of our 1,000+ clients, not a single one has received a letter like this. It could well be that the trigger for the investigation into the client in the screenshot was the wrong code they were registered under.

If you are actively working and your income has just dipped slightly, you are in a very different position than someone who has abandoned the requirements entirely. The UGE is most likely looking for "indications" of fraud or total cessation of activity; a temporary business dip is generally not their target.

What the New Law Says: Causes for Extinction

The new Immigration Reform (Real Decreto 1155/2024), which became fully active in May 2025, provides the legal framework for authorities to revoke residency. Under the updated Artículo 200, residency can be extinguished for several reasons. These causes apply to every type of temporary residency, including those managed by the UGE like the Digital Nomad Residency.

• No Longer Meeting the Requirements: You no longer meet the conditions that granted you the permit (such as the minimum €2,849/month income for a single applicant).
• Cessation of Activity: You are no longer performing the specific remote work for which the residency was granted.
• Fraud or Falsehood: It is discovered that documents were manipulated or that the remote work arrangement was not genuine.
• Tax/Social Security Debts: Significant, unresolved debts with Hacienda or Social Security can trigger an extinction procedure.

A Note on Absences: Unlike in the previous law, the 6-month absence rule for temporary residency isn't included in the new reform after being declared null by the Supreme Court (except for those on the NLV). 

What are IAE and CNAE codes?

When you register as an autónomo (self-employed) in Spain to maintain your residency, you must tell the government exactly what you do using two specific classification systems:

• IAE (Impuesto sobre Actividades Económicas): This is for tax purposes. It tells Hacienda (the tax office) what kind of taxes you owe.
• CNAE (Clasificación Nacional de Actividades Económicas): This is for statistical and Social Security purposes. It identifies your industry for the national database.

Why this matters for your residency: If you are registered under a code for "Local Pizza Delivery" instead of "IT Consultant," the UGE will see you aren't working as a digital nomad and may move to revoke your permit.

The New 2026 Income Requirements

The government is increasingly cross-referencing residency data with Tax (Hacienda) and Social Security records. Following the 2026 SMI increase, the gross income you must prove has risen:

What Shall You Do if You’re Short?

If you realize you aren't hitting the mark this year, do not wait for a letter to arrive. Take control of your residency:

• Find new client(s) ASAP: Your primary goal should be to bridge that gap. The UGE looks for stability over the long term. If you replace a lost client quickly and concentrate on bumping up your income, you show you are still a self-sufficient resident.
• Lean into the 20% Rule: You are allowed to earn up to 20% of your total income from Spanish clients, provided it is remote work. Use this to help reach your total income threshold if your foreign contracts have dipped.
• Use a Tax Specialist: It is vital to use a specialist such as MyTaxes.es who knows how to register you with the correct IAE/CNAE codes. It is not as simple as it appears—some codes are reserved for those who are "colegiados" (like lawyers). Being in the wrong code could seriously jeopardize your residency.
• The "Savings" Buffer: While residency is primarily income-based, showing significant liquid savings in a Spanish bank account could help to demonstrate financial solvency during a temporary dip.

The Bottom Line

Spain wants you here, but they want you to stay within the lines. If your income has dropped, don't spiral—just get to work on that next contract and make sure your tax paperwork is in the hands of someone who understands the Digital Nomad residency rules.

Do you want us to double-check your current IAE registration?

Contact MyTaxes.es for a professional audit to ensure your business activity matches your residency requirements before your next tax filing.