Spain
Spain has recently launched a special visa program for international teleworkers under the Startup Act 28/2022. Here are the requirements for the visa:
Standard Requirements
- Certificate of Social Security coverage (If there is an agreement with the country of origin) or registration in the Spanish social security accrediting at least the application for registration of the foreign company before the Spanish Social Security and the commitment to register once the authorization before the start of work.
- Public or private health insurance. Travel insurance is not accepted (Not necessary in the case of registration with Spanish Social Security).
- Police background check of the country/countries they resided in the past 2 years, along with the affidavit of clean criminal record.
Specific Requirements for the Digital Nomad Visa
- The visa is valid only for one year.
- The residence permit is valid up to 3 years.
- The freelance applicant is required to earn at least 80 percent of income from outside of Spain.
- The applicant must be a qualified professional with a minimum of three years of professional experience, or be a graduate or postgraduate from universities of recognized prestige, or from professional training and business schools of recognized prestige.
- The applicant must show proof of being employed with the employer (outside of Spain) for at least one year continuously and permit to work remotely. In case of contractual employment, proof of professional relationship with an entity (outside of Spain) for no less than three months and permit to work remotely. In case of freelancing, proof of working with at least one non-Spanish company from at least the past three months and providing terms and conditions allowing to work remotely.
- The applicant must work through the exclusive use of means and systems, computer science, telematics and telecommunication and have valid experience and technical knowledge for the job performance.
- The applicant must have clean criminal records.
Taxation
The tax residence criteria for the digital nomad visa is the same as for other visa holders. However, applicants may be eligible for the Special Tax Regime. If they fulfill all the requirements, they would be taxed on their salary income at a 24% flat rate (up to 600k, 47% onwards) and their foreign source private income (such as capital gains, dividends, interests or income from real estate) would not be subject to taxation in Spain.
Brazil
Brazil offers a Digital Nomad Temporary Visa for remote workers. Here are the requirements:
Specific Requirements for the Digital Nomad Visa
- The consular fee is EUR110.
- The applicant must have a minimum income of US$1,500 per month or a bank balance of US$18,000.
- The visa is valid for 1 year, renewable for an additional year.
- The applicant must provide background check details issued within 90 days.
- The applicant must provide a declaration to perform professional activities remotely.
- The applicant must possess proof of subsistence, medical insurance, and travel insurance.
Taxation and Social Security
The foreigner holding a temporary visa (Digital Nomad) will be considered a tax resident in Brazil as from the 184º day of physical presence in the country, consecutives or not, within any 12 months period. Once they are considered a tax resident in Brazil, they would be liable to tax on a worldwide basis. The temporary visa holder (digital nomad) can make use of a bilateral agreement with the home country of origin to mitigate double taxation, whether possible, under certain rules.
In general, the visitor visa (which is not the case of the Digital Nomad) would not trigger tax liability in Brazil as the period of stay authorized by immigration law is lesser than 183 days, which is the length of stay that would not trigger tax residency. Nevertheless, if the 183 days threshold is exceeded, the tax residency will be triggered (as from 184º day).
The temporary visa holder without a labor contract in Brazil and the visitor visa holder will not be eligible for mandatory social security contributions in the country, even if they reach the conditions to become tax resident in the country.
Conclusion
Spain and Brazil are both popular destinations for digital nomads, and both countries offer visa programs specifically designed for remote workers. While the requirements for each country's digital nomad visa differ slightly, they both offer flexible opportunities to work remotely while experiencing each country's unique culture and lifestyle. If you're considering either of these countries for your remote work stint, be sure to carefully review the requirements before applying for a digital nomad visa.