Digital nomads working in Spain must pay taxes in accordance with the Spanish tax regime. The main taxes that digital nomads in Spain are subject to include:
- Income tax: digital nomads must pay tax on income from foreign sources.
- Value-added tax (VAT): digital nomads must pay VAT on goods and services they purchase in Spain.
- Social security contributions: digital nomads must pay contributions for themselves and their employees.
The Spanish tax regime for digital nomads includes the following benefits:
- Tax rate: digital nomads can benefit from a flat tax rate of 24% on income from foreign sources.
- Tax deduction: digital nomads can claim deductions for expenses related to their professional activities.
Overall, Spain’s tax system for digital nomads is favorable and allows them to work remotely in the country without excessive tax burdens.
If you are employed: the so-called
Beckham Law applies — 24% flat income tax with no progressive scale, regardless of total earnings. Foreign income, except for the declared nomad’s income (from €2,520/month), is not taxed.
If you are self-employed or a freelancer: the effective tax rate is around 20% (if annual income is below €60,000). Social security contributions in the first year are about €87/month.