Tax increases happen ALL THE TIME. But a tax cut? They are rarer than seeing the abominable snowman in person.
This is why digital nomads might want to take advantage of this and start moving to Spain, where the Spanish government is hoping to attract more remote workers into the country.
Digital nomads will understand that visas and taxes are some of the most frustrating parts of a nomadic lifestyle, and while some countries have adopted measures specifically for remote workers, those countries are still few and far between, so this will be a relief to nomads everywhere.
The purpose of the scheme is to boost start-up culture in the country, both from national and international talent.
These new measures will allow foreign remote workers to use a non-resident tax status with lower rates for five years. Spanish expats who have been abroad for over five years, and are wanting to return home to work are also eligible for this program.
The tax reduction is significant, with a tax cut from 25% to just 15% for the full five years, and applies to both salaried workers and those who are self-employed.
Spain is not the first country to offer special measures for digital nomads. The pandemic has seen a massive rise in remote workers looking to live in a different country since many companies have employed a work-from-home scheme for their employees. Among the countries that have adopted new laws for remote workers are Croatia and Georgia.
In 2021, Croatia passed a law that offers non-EU residents a 12-month digital nomad visa and includes a tax exemption for that full year.
Georgia’s new visa also allows remote workers a year-long visa, as long as they earn at least $2000 monthly.
Costa Rica, Iceland, and Thailand also have laws in place for digital nomads.
