Taxes, Banking and Money in Spain for Digital Nomads

You are a Spanish tax resident for a calendar year if:

• you spend more than 183 days in Spain in that year, or
• your main centre of business or economic interests is in Spain, or
• your spouse and dependent children live in Spain (a presumption you can rebut).

Residents are taxed on worldwide income. Non-residents are taxed only on Spanish-source income.

Rates are progressive and split between the state and your region, adding up to roughly 19% to 47%, depending on income and region. Self-employed residents usually register as autónomo, file quarterly returns and pay social security contributions. Residents with foreign assets above €50,000 in a category must also file the Modelo 720 information return.

Spain’s special regime for people moving to Spain for work, extended to digital nomad visa holders by the 2023 Startup Law:

• Spanish-source income taxed at a flat 24% up to €600,000 (47% above).
• Most foreign income untaxed, except dividends, interest and capital gains, which are taxed at savings rates.
• Lasts for the year you arrive and the next five years.
• You must not have been a Spanish tax resident in the previous five years, and must apply within six months of registering with social security or starting work in Spain.

For a remote employee, salary for work done in Spain counts as Spanish-source and is taxed at 24%, usually less than standard rates. The rules for freelancers are more complex. A Spanish tax adviser (asesor fiscal) is well worth the cost.

These are ballpark monthly costs for one person living comfortably in a one-bedroom flat on a monthly lease, eating out most days, with a coworking desk and a social life.

Rough prices: a menú del día €13 to €16, a coffee €1.50 to €2.50, a caña (small beer) €2 to €3.50, a dinner out €25 to €40, a coworking day pass €14 to €25, a month of coworking €130 to €300, and a monthly transport pass €20 to €40 after subsidies.

Cards and contactless payments are accepted almost everywhere. Bizum, linked to Spanish bank accounts, is used to pay friends, split bills and pay some landlords and small shops. ATMs inside banks are generally safest; some independent machines charge high fees.

Non-residents can open an account with a passport and proof of address; residents use their NIE. Banks such as Santander, BBVA, CaixaBank and Sabadell, and online banks such as Openbank, serve foreigners, though fees and requirements vary. A Spanish account gives you Bizum and makes direct debits for rent, utilities and phone easier. Wise and Revolut work well until then.