Spain digital nomad visa

[WTFH]

I wanted this digital nomad visa thing to work…, but I just don't see it offering any financial incentive for UK Ltd contractors.

If you want to run your UK Ltd, then no, it’s not going to offer you any incentive. You need to be a digital nomad, not a UK Ltd trying to act like you’re not.

[lecyclist]

Spotted this:

https://www.contractoruk.com/oversea...directors.html

The article is a bit confusing to me, unless I'm missing something. Why would you pay the minimum salary to qualify for the visa, leaving the rest in your Limited company to be taxed at what will be 25% from April 2023? Surely, you'd do the total opposite and pay no corporation tax? Also, I think the income tax rates is a flat rate at 15% irrespective of what you pay yourself.

I agree. It seems logical to identify ways to reduce the profits in the UK limited company to close to the £50K level, to take advantage of the 19% corporation tax rate. There are many options here depending on personal circumstances.

One other thing not mentioned in the article is the requirement for 'full' private medical insurance, which is significant at around €300 / month, which would pretty much negate any CT increases for most contractors.

I was quoted €2200 for a family of 4 from ASSSA health insurance for an annual policy some months back. This was "like for like" with Spanish state cover, no restrictions on previous illnesses, and fully compliant with attaining residency. The hospitals suggested to me based on the geography I was considering were the IMED chain. You may recall that the golden visa, non-lucrative visa, and other visa types usually require private insurance just for the first year, at which point you can switch over to the state system. This may also prove to be the case with the Digital Nomad visa, but you would need to check. Alternatively, you can apply for an S1 in your country of residency, which is sufficient when making normal residency applications to sidestep the Spanish private health requirement. However, again this may not apply to the Digital Nomad visa, so you would need to check.

In my case, the European Residency permit was preferable to me (as a permanent resident of another EU country), so I did not investigate further.

Then there's the employers NI that the UK Ltd would presumably still have to make.

I wanted this digital nomad visa thing to work, seeing as I already have property out in Spain and spend several months a year over there, subject to the 90/180 day rule, which is why I launched this thread, but I just don't see it offering any financial incentive for UK Ltd contractors. Please tell me I'm wrong!

Don't he disheartened. It's worth exploring all the options available again.

[Bluenose]

The Startup-law was passed by the Spanish Senate on 12th December.

I would suspect its going to be a month or three until the U.K Consulates know how to process the new Visas.

I have started a thread in the accounting section (link below) so we can crowdsource information on options of how we can get paid.

It's early days and I don't expect much information but its down to us lot to work out how to do it.

https://forums.contractoruk.com/acco...h-payroll.html

[The Green View]

The Startup-law was passed by the Spanish Senate on 12th December.

I would suspect its going to be a month or three until the U.K Consulates know how to process the new Visas.

I have started a thread in the accounting section (link below) so we can crowdsource information on options of how we can get paid.

It's early days and I don't expect much information but its down to us lot to work out how to do it.

https://forums.contractoruk.com/acco...h-payroll.html

Still got my NEI, don't know if that will give me a leg up in the process but I'd assume it's a necessary prerequisite

[Bluenose]

Still got my NEI, don't know if that will give me a leg up in the process but I'd assume it's a necessary prerequisite

I was informed by the consulate that an NEI is not a requirement to apply for a work permit.

You can get one when you travel to Spain.

[The Green View]

I was informed by the consulate that an NEI is not a requirement to apply for a work permit.

You can get one when you travel to Spain.

Oh well, it will save me a day in endless queues at the local police station

[lecyclist]

Still got my NEI, don't know if that will give me a leg up in the process but I'd assume it's a necessary prerequisite

Getting an NEI is useful for opening a Spanish bank account with no account fees, for example with BVVA. The online application insists additionally on residency, but turn up to a branch an and NEI will suffice.

A Spanish bank account is a pre-requisite to buy property in Spain, and also helpful when signing contracts (e.g. rental agreements, phone contracts) and to pay for utilities.

[oliverson]

Getting an NEI is useful for opening a Spanish bank account with no account fees, for example with BVVA. The online application insists additionally on residency, but turn up to a branch an and NEI will suffice.

A Spanish bank account is a pre-requisite to buy property in Spain, and also helpful when signing contracts (e.g. rental agreements, phone contracts) and to pay for utilities.

Its NIE not NEI

[lecyclist]

Indeed. Oops

[Bluenose]

Getting an NEI is useful for opening a Spanish bank account with no account fees, for example with BVVA. The online application insists additionally on residency, but turn up to a branch an and NEI will suffice.

A Spanish bank account is a pre-requisite to buy property in Spain, and also helpful when signing contracts (e.g. rental agreements, phone contracts) and to pay for utilities.

Just for clarity, you do not need an NIE number to open a Spanish bank account at a Santander branch in Spain. You just need to be able to produce sufficient identification information e.g. Passport.