26 January 2023
Impact: High
Summary
On 1 December 2022, the Spanish Parliament approved the so-called “Law of Start-ups”, which includes significant reforms of the current immigration legal framework for digital nomads (previously unregulated but increasingly more common), highly skilled professionals and entrepreneurs.
The reforms aim to benefit targeted groups given their economic relevance, such as workers with disruptive skills, and innovative businesses; by relaxing administrative or bureaucratic requirements, adapting the legal framework to the post-pandemic “new-normal” and boost the efficiency of immigration procedures for this reference group.
These new changes came into effect by late December 2022, although the administrative practice has not been set up yet – this is due to happen before 31 March 2023.
The Detail
Upcoming changes: what’s going to be new.
a) Implementation of a new visa and residence permit adhoc for digital nomads and remote workers: now, non-EU employees, hired by a foreign company (non-based in Spain), with an internal seniority within their employers of at least three months, can apply either for a digital nomad visa at the relevant Spanish Consulate abroad valid for one year (if the applicant is not initially present in Spain when submitting the application); or for a residence permit as a digital nomad directly in Spain, valid for three years. This is extendable to the digital nomad’s direct relatives too.
In regards to the foreign employer’s requirements, there are basically two: the company must have been an operating business for at least one year prior to the application; and the job to be developed in Spain shall be done fully remotely on behalf of the foreign employer, without providing professional services to a company based in Spain (under such a scenario, an ICT work permit would be more appropriate).
Alternatively, if the digital nomad is a self-employed person, it is permitted that a maximum of 20% of the applicant’s labour time is dedicated to the provision of services to Spanish companies.
b) Initial validity of work permits for highly skilled professionals, researchers, national intra-company work permits, investors and entrepreneurs (in addition to the digital nomads) of three years, rather than two.
c) Easing of administrative requirements, such as:
d) Redefinition, on the one hand, of what “entrepreneurial activity” means at the light of the Immigration Law (setting the focus on the applicant’s profile, his/her business plan and its added value for the Spanish economy); and, on the other hand, more importantly, reshaping of the process – which now is handled entirely by the central immigration office (“Dirección General de Migraciones”) and liaises with the relevant stakeholders (mainly, the Spanish Consulate and ENISA) during the visa and residence permit application process.
e) Graduates: the visa for searching employment is valid now up to 24 months (rather than 12), whereas the work permit for graduates on the grounds of a trainee contract is now valid for up to 12 months.
What this means for you
These changes will make some immigration processes more efficient by easing some requirements. It will also allow to accommodate new trends in regards to digital nomads and expat policies, so spread in the post-pandemic new-normal, making Spain an attractive base for this group of remote workers along with the also new tax incentives and fiscal reforms to be implemented along with the immigration changes here announced.
How we can help
Please do reach out to your Vialto Partners contact should you have any questions on the above. Our team can help with:
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