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Real requirements, Social Security, and tax advantages under the Beckham Law

The international teleworker residence permit, commonly known as the digital nomad residence, is one of the most attractive options for employees of foreign companies who want to live legally in Spain without giving up their job.

In addition to providing immigration stability, it offers a key advantage for international employees: the possibility of applying for the special tax regime known as the Beckham Law.

Below are the points that truly matter and that most frequently cause problems in practice.

Who can apply for the digital nomad residence as an employee?

This residence permit can be requested by individuals who:

  • Are employed under an employment contract

  • Have a valid employment contract with a foreign company

  • Work 100% remotely

  • Receive stable income from abroad

  • Wish to live legally in Spain while maintaining their employment relationship

There is no need to register as self-employed.

⚠️ However, it is essential to correctly meet the employment, tax, and Social Security requirements.

100% remote work: an essential requirement

The UGE (Large Companies Unit) requires that the position:

  • Can be performed entirely remotely

  • Does not require regular physical presence

  • Is carried out using digital and telematic means

✅ Digital, technological, administrative, management, or consulting roles generally fit well.

❌ On-site or hybrid positions often lead to requests for additional documentation or refusals.

Official requirements according to the Large Companies Unit (UGE)

  • A valid employment contract with a foreign company

  • The company must be legally established and have at least one year of activity

  • A minimum employee seniority of three months

  • Explicit authorization from the company allowing remote work from Spain

This last point is particularly sensitive when not properly drafted.

Social Security and healthcare coverage: the most delicate issue

This is where most mistakes occur.

  • Social Security coverage certificate

    This is only possible if the country of origin has a Social Security agreement with Spain. It proves that the employee continues to contribute in their home country.

If this certificate does not exist or does not include healthcare coverage, it will be mandatory to provide private health insurance with full coverage in Spain.

❌ Travel insurance is not accepted.

When no coverage certificate exists, the foreign company must register with the Spanish Social Security system, enroll the employee, and assume social security contributions.

⚠️ This point must be analyzed before starting the application process.

Taxation: why the Beckham Law is so attractive for employees

One of the major benefits of this residence permit is the possibility of applying for the Beckham Law.

It allows employees to:

  • Be taxed as non-residents for tax purposes

  • Apply a flat 24% tax rate on employment income (up to the legal limit)

  • Avoid taxation on worldwide income, paying tax only on income obtained in Spain

This regime is especially attractive for medium to high salaries.

⚠️ Important: this tax regime is not applied automatically.

It must be expressly requested and within very specific deadlines. A mistake may result in losing the regime entirely.

Minimum income requirements

In practice, applicants are required to demonstrate indicative minimum income of approximately €2,800 per month, justified through employment contracts, payslips, and bank statements.

Conclusion

The digital nomad residence permit for employees is a very solid option, as it combines immigration stability, legal certainty, family reunification possibilities, and highly favorable taxation under the Beckham Law.

The key is to do things correctly from the very beginning, especially regarding Social Security and taxation.

At our firm, we analyze each case individually to design the most effective immigration and tax strategy possible.


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https://legalexpats.odoo.com/book/37983c85

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