A Brexit Benefit???

[John H]

https://www.spectator.co.uk/article/hola-heres-the-first-brexit-benefit/?fbclid=IwAR1Gqriqu0bn6eq3ReDruFv-Zbrrt6BywylwO7-5pLewiC9oL-_8viAdYrI


It comes in the form of the new Digital Nomad Visa, just recently passed into law by the Spanish government. In essence it means remote workers, who make most of their money outside Spain, can now go and live in Spain and get residency – for five years or more – and they will only pay 15 per cent tax. All they need is health insurance, an annual income of €28,000 (£24,500), and proof that they are – wait for it – non EU nationals. This scheme, like similar schemes hoving into view in Portugal, Croatia, Greece, and elsewhere – is not available to EU citizens.

Regards all

John

[TRIDENT]

Only a benefit for the well off high earners. When i came to Spain the people coming here were down to earth folk wanting something more than rainy UK. Something they could dream of retiring to. This agreement sits well with Tory policy of the rich receiving the the benefits. I as a pensioner would not be in a financial position to move to Spain under Brexit rules. I met a Irish girl the other day who has come to Spain to do a course at uni which in the UK would have cost her 5 x 9000 pounds dept. Because Ireland has special arrangements she has benefited. The visa is for 1 year and can be extended for 2,3,4,5, . We will not see many plumbers.mechanics,bricklayers,teachers,bus drivers,store managers etc applying for the visa.No they have to be physically at their place of work not tapping a key pad.   Now to get the hook out.. 

[John H]

The current Government in Spain is led by Pedro Sánchez of the Spanish Socialist Workers' Party.....so I'm not sure what it has to do with The Conservatives!!
When I first read the article my thoughts were that they want our money......15% tax payment is a brilliant incentive to get you there if you can indeed do most of your work remotely.

Have a great day

John

[wilson]

This policy makes good economic sense by inviting people from around the world to live and work in Spain at probably lower tax rates than their home countries. Spain Achilles heel has always been its own citizens reluctance to pay any tax, it’s a national pastime with most Spaniards so enticing non EU citizens could be the way forward. Incidentally Spain will again in 2023 be in receipt of billions from the EU budget to prop it up financially.

[Derek]

Hi Wilson. Here is the actual Income Tax rates for Spain;
Spanish income tax for incomes ranging from €20,201 to €35,200: 30% Spanish income tax for incomes ranging from €35,201 to €60,000: 37% Spanish income tax for incomes ranging from €60,000 to €300,000: 45% Spanish income tax for incomes over €300,000: 47%.

They do not look lower than the UK to me.

[wilson]

Well spotted Derek you are indeed correct regarding Spain’s current tax rates, however I’m unclear how this applies to the new law regarding the digital nomad visa which this discussion is about where a reduced tax rate of 15% applies, for workers like myself who easily qualify this seems a win win. On another positive anyone with said visa can then apply for residency to travel the EU freely, it seems that common sense is finally back in fashion.