The growing trend of remote working is opening doors for digital nomads all over the world, and countries like Spain and Portugal are positioning themselves as attractive destinations for those looking for a change of scenery without jeopardising their careers.
Let’s dive into the nuances of the residence visa programmes for digital nomads – also called Remote Work Visas – in both countries and find out which one best suits your needs.
Remote Working Visa Eligibility Requirements:
- Spain: The requirements for a digital nomad residence visa in Spain are strict. Applicants must hold a recognised bachelor’s or postgraduate degree, or have three years’ professional experience in the field. In addition, they must have a stable contract, permission from the company to work in Spain and the company must have been in operation for at least a year.
- Portugal: In contrast, Portugal offers a more flexible approach. No specific educational degree is required; the visa can be obtained on the basis of the applicant’s employment and income. An employment contract stating the possibility of remote work is required, as well as proof of income for the last three months.
Financial Requirements:
SPAIN
- Applicants must prove a minimum income of €2,646 per month to qualify for the digital nomad visa. These figures will also be used as means of subsistence and increase if the applicant is accompanied by a partner or children. For example:
- For a family of two, the minimum income required is €3,632 per month, representing an increase of 75 per cent.
- For a family of three, the minimum income rises to €3,970 per month, representing an increase of 25 per cent for each additional dependent.
PORTUGAL
- Portugal: On the other hand, the financial requirements in Portugal are a little different. Applicants must have a minimum income of €3,280 per month to qualify for the digital nomad visa, which is four times the National Minimum Wage. However, the minimum means of subsistence refer to the national minimum wage (€820):
- For a family of two, the minimum means of subsistence is €1,230 per month, representing 50 per cent of the amount for an adult.
- For a family of three, the minimum means of subsistence is €1,476 per month, with 30 per cent for dependent minors.
Duration of the Visa and Residence Permit:
- Spain: The initial visa is valid for one year. After this period, it is possible to apply for a residence permit for remote workers, valid for three years and renewable for two-year periods.
- Portugal: The initial visa in Portugal is valid for four months. After this period and by making an appointment with AIMA, a residence card valid for two years is issued, renewable for subsequent three-year periods.
Renewal and Permanence:
- Spain: To renew your residence in Spain, you must remain in the country for at least six months within a 12-month period.
- Portugal: To renew your residence in Portugal, you must not leave the country for more than 6 consecutive months or 8 interpolated months during the term of the residence card (2 and 3 years, respectively).
Tax advantages of the Remote Working Visa:
SPAIN
- Digital nomads can benefit from a reduced tax rate of 15% for the first four years, followed by the standard rate of 25%.
- Digital nomads who set up a company in Spain can take advantage of the ‘Patent Box’ regime, which offers up to a 60% reduction on income derived from intangible assets. However, self-employed workers must register as such and are subject to high social security contributions.
PORTUGAL
- The Incentive for Scientific Research and Innovation in Portugal offers a special rate of 20% on labour income for new residents, valid for 10 years. It is ideal for digital nomads and global professionals looking to benefit from a favourable tax regime.
- This status covers areas such as teaching in higher education, scientific research and skilled jobs in innovative companies, and is an attractive choice for those who want tax stability when working remotely or settling in Portugal.
Obtaining nationality:
- Spain: Periods of legal residence to obtain Spanish nationality vary according to circumstances: 10 years for the general population, 5 years for refugees, 2 years for nationals of certain countries (including Latin American nations, Andorra, the Philippines, Equatorial Guinea and Portugal) or Sephardic descendants.
- Portugal: In Portugal, obtaining nationality requires continuous legal residence in the country for a minimum period of 5 years, with no exceptions.
Remote Working Visa – Conclusion
When comparing remote working visas in Portugal and Spain, it’s clear that each country offers specific advantages and conditions that can attract different profiles of digital nomads.
Spain sets stricter requirements in terms of academic qualifications and contractual stability, while Portugal stands out for its flexibility and more accessible approach to financial requirements, especially for families.
In tax terms, Spain offers a reduced tax rate for digital nomads for the first four years, followed by the standard rate, as well as incentives for self-employed workers through the ‘Patent Box’ scheme.
On the other hand, Portugal offers a favourable tax regime with a special rate of 20% on employment income for new residents, valid for 10 years, encouraging areas such as scientific research and skilled jobs in innovative companies.
In addition, Portugal offers a more direct route to obtaining European citizenship, with a minimum period of legal residence of 5 years, compared to different periods required by Spain, depending on the situation.
Both countries offer good opportunities for digital nomads, but if you’re considering a move to Europe while retaining the freedom to work remotely, Portugal could be the ideal destination for you, offering not only flexibility and accessibility, but also a direct route to obtaining European citizenship.
If you want to know more about this, you can read the full guide to the D8 Visa here. For any kind of legal support or to apply for your remote working visa, don’t hesitate to get in touch with our team here.
