Spanish Residency at Risk: Why Digital Nomads Are in the Danger Zone?

Friends, today we want to touch on a topic that causes a lot of anxiety among our clients in Spain. And the number of clients wanting to obtain Spanish residency with our expertise is growing every time.

Have you ever thought that your Spanish residence permit could be revoked? Unfortunately, such cases have become more frequent this year. But it’s too early to panic – there is one key condition that will save you from this sad scenario.

Who is at risk?

This applies to all digital nomads who work not as employees, that is, for themselves, and who:

• have obtained Spanish residency;
• but have not registered as autónomo (local sole proprietorship);
• and have not registered with social security.

The thing is that the digital nomad residence permit is issued by a body subordinate to the Ministry of Social Security and Migration of Spain. And this same body very strictly monitors whether the nomad has fulfilled their obligation – whether they have registered in the social security system.

What happens if this is not done?

If you received residency with the obligation to register as autónomo and pay social security, but did not do so, you risk receiving a notification of status revocation.

But even in this case, all is not lost – you have 10 working days to rectify the situation.

However, this will entail additional costs:

• services of a gestor (accountant);
• payment of social security for the entire period from the date of obtaining residency;
• late payment penalties.

An important nuance regarding benefits

The reduced social security rate may no longer be available. Although there are exceptions when the benefit can still be preserved for the next year.

In any case – it is expensive, troublesome, and unpleasant. Therefore, it is better to fulfill all obligations immediately: register as a local sole proprietorship and pay social security regularly.

Spanish residency is convenient for traveling around Europe, unblocking assets, and acquiring new ones. It can also be used for changing status – we can help you with this. If you are looking toward legalization in Hungary and the Hungary Golden Visa – a unique program that gives you status immediately for 10 years with a possible extension for another 10 years, and you do not need to reside in the country.

At IST Hungary, we always develop an individual strategy for each client, clarify all important details in advance, and help understand tax nuances together with our Spanish tax partner – an accountant, and not only.

Need help with Spanish residency, permanent residency, the Hungary Golden Visa, or opening bank accounts?

We are almost always among the first to be up to date with all laws and changes in migration, tax legislation, and more.

If you need to:

• obtain a digital nomad visa in Spain or any other service related to Spain;
• open a bank account in Spain, Hungary, or other countries;
• apply for the Hungary Golden Visa;
• obtain residency or permanent residency in Spain and Hungary

Contact us!
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This is our motto, and we stay true to it.