The rise of remote work has driven an influx of international professionals working remotely from anywhere in the world. Spain, with its high quality of life and access to the European market, has become one of the most attractive destinations.
The Digital Nomad Law in Spain establishes a legal framework to facilitate residency and taxation for these professionals. However, living and working in Spain entails tax and accounting obligations that must be met to avoid penalties from the Spanish Tax Agency.
In this guide, Lextax explains the tax requirements you need to be aware of if you are a digital nomad in Spain, from tax residency rules and the taxes you need to pay to the best tax optimization strategies.
📌 Need tax advice to work in Spain? At Lextax, we help you manage your tax situation safely and legally.
Tax Residency in Spain: When Are You Considered a Taxpayer Here?
To determine whether a digital nomad must pay taxes in Spain, it is necessary to review the tax residency criteria established by the Spanish Tax Agency:
✅ Staying in Spain for more than 183 days in a calendar year.
✅ Having Spain as your main economic center of interest (if your primary source of income comes from Spain).
✅ Family ties: If your spouse or dependent children reside in Spain.
If you meet any of these criteria, you will be considered a tax resident in Spain and must pay taxes on your worldwide income, meaning all income generated both inside and outside of Spain.
🔗 If you have assets or income abroad, it is important to be aware of Modelo 720, a mandatory declaration for residents with assets exceeding €50,000 outside of Spain.
Do I Need to Register as a Freelancer if I Work as a Digital Nomad in Spain?
If you provide services from Spain as a freelancer or self-employed professional, you are required to register with Hacienda (the Spanish Tax Agency) and Social Security.
📌 Steps to register as a freelancer in Spain:
- Register with Hacienda → Submit Modelo 036 or 037 to register as a self-employed worker.
- Register with Social Security (RETA) → Mandatory to pay the self-employment quota, which varies based on your income.
- Quarterly and annual tax obligations.
🔹 Do you work for a foreign company? If you have an international contract, you do not need to register as a freelancer, but you must analyze whether you establish tax residency in Spain.
Tax Obligations for Digital Nomads in Spain
Quarterly Taxes for Freelancers
If you work as a freelancer in Spain, you must file quarterly tax returns with Hacienda:
📌 Modelo 130 (IRPF): Payment of 20% on net profit for the quarter.
📌 Modelo 303 (VAT): VAT settlement on collected VAT minus deductible expenses.
📌 Modelo 111: Income tax withholdings if you hire employees or collaborators.
Do I Have to Pay VAT if I Work with Clients Abroad?
The application of VAT in Spain depends on the client’s location:
✅ Clients in Spain → Yes, you must include 21% VAT on your invoices.
✅ Clients within the EU (companies) → No VAT applies if both are registered in the EU VAT Register (ROI).
✅ Clients outside the EU → VAT-exempt, as long as you can prove that the service was provided to a foreign client.
At Lextax, we help you determine whether to apply VAT on your invoices according to current regulations.
Income Tax Return in Spain for Digital Nomads
If you are taxed as a tax resident in Spain, you must file an income tax return (IRPF) between April and June of the following year.
📌 When is filing the tax return mandatory?
- If you earned more than €22,000 from a single payer.
- If you earned more than €14,000 from multiple payers.
- If you are self-employed and earned more than €1,000 annually.
Failing to comply with these obligations may result in tax penalties.
How Can I Optimize My Tax Burden as a Digital Nomad in Spain?
If you work in Spain and have a high income, there are several options to legally reduce your tax burden:
Beckham Law: Reduced Taxation
Digital nomads who meet the requirements can apply for the Beckham Law, allowing them to pay 24% IRPF on the first €600,000 annually instead of the progressive rate of up to 47% under the general tax regime.
Setting Up a Limited Company (SL)
If your annual income exceeds €60,000, forming an SL (Sociedad Limitada) in Spain allows you to pay 25% Corporate Tax, instead of the higher progressive IRPF rates.
Tax Residency Planning
If you stay in Spain for less than 183 days, you may avoid becoming a tax resident and benefit from lower taxation in another country.
At Lextax, we design the most efficient tax strategy to optimize your taxes legally.
What Happens If I Don’t Declare My Income in Spain?
Failing to meet tax obligations in Spain may lead to serious penalties:
⚠️ Fines for tax omission (up to 150% of the undeclared amount).
⚠️ Late payment interest for delayed tax payments.
⚠️ Tax audits by Hacienda if there is suspicion of tax fraud.
To avoid risks, Lextax offers tax advisory services to ensure you comply with the law without complications.
Conclusion: Comply with the Digital Nomad Law Without Issues
If you are a digital nomad in Spain, it is essential to meet your tax and accounting obligations to avoid penalties and optimize your tax situation.
📌 Summary of Recommendations:
✔️ If you work as a freelancer, register with Hacienda and Social Security.
✔️ If you invoice clients in the EU or outside Spain, check VAT application rules.
✔️ Optimize your tax burden with the Beckham Law or by setting up a Limited Company (SL).
✔️ File your quarterly and annual tax returns on time.
📩 Do you have questions about your tax situation in Spain? Contact Lextax for personalized advice to work safely and efficiently.
💡 At Lextax, we simplify your tax obligations in Spain.