Non-resident tax regime in Spain: what are the advantages for digital nomads?
Spain stands out as an attractive destination for digital nomads, not only for its rich culture and stunning landscapes, but also for its advantageous tax opportunities. This article explores the Non-Resident Tax Regime (RFNR) in Spain, based on relevant legal provisions. In addition to the legal aspects, there is also a reflection on how the regime can offer a structure that aligns with the lifestyle of digital nomads.
1. What is the Non-Resident Tax Regime in Spain?
The Non-Resident Tax Regime applies to individuals who spend less than 183 days a year in Spain and are therefore not considered tax residents in the country. These individuals are only taxed on their Spanish-source income. The legal basis for this regime can be found in the Non-Resident Income Tax Law (IRNR), Law 35/2006, together with Royal Decree 439/2007, which approves the IRPF regulations.
NOTE: The Non-Resident Tax Regime is not to be confused with the Beckham Law regime. To find out more about Beckham's Law, I recommend reading this article.
2. Taxation in the RFNR
Under the RFNR, digital nomads are generally taxed at a flat rate of 24 per cent on income generated in Spain. For residents of other European Union or European Economic Area countries, the rate can be reduced to 19.5 per cent. This regime covers income such as
Labour income: salaries paid by Spanish companies.
Income from economic activities: such as consultancy and services provided to Spanish clients.
Income from real estate capital: rents from properties located in Spain.
3. Relevant Legal Aspects
For digital nomads wishing to benefit from the RFNR, it is essential to understand the rules on:
Tax residency: Determination of residence based on length of stay and centre of economic and vital interests.
Double Taxation Agreements: Spain has agreements with several countries to avoid double taxation, ensuring that income is not taxed in both Spain and the digital nomad's country of origin.
4. Benefits and Considerations for Digital Nomads
Tax Simplicity: The RFNR offers a simplified regime, allowing digital nomads to focus on their business without worrying about complex tax management.
Flexibility of Movement: By not committing to a permanent tax residence, digital nomads can explore new countries and cultures without complicated tax ties.
5. Flexibility and Lifestyle of Digital Nomads
The RFNR provides the necessary flexibility for digital nomads to live and work in different locations throughout the year, which can be attractive to those who are constantly looking for new experiences and environments. This possibility of frequent change can offer a sense of freedom, allowing digital nomads to mould their routines according to their personal preferences.
6. Final Recommendations
For those considering Spain as a base for their activities, it is advisable to:
Consult a specialist in international tax law to understand the full tax implications and ensure compliance with Spanish laws.
Monitor Spain's tax legislation, as laws and regulations can change and impact on RFNR eligibility and benefits.
Conclusion
The Non-Resident Tax Regime in Spain is an excellent option for digital nomads looking for a favourable tax environment combined with the opportunity to explore Spain's rich culture. By opting for this regime, digital nomads can find a balance between their professional and personal needs, enjoying the freedom that this lifestyle offers.
If you are interested in hiring professional legal services related to tax consultancy, we are a firm that specialises in this area. To do so, please contact us by e-mail: contato@trpuppioadvocacia.com.br, or by WhatsApp.
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