The digital nomad visa in Spain
Following the approval of the digital nomad visa in Spain in 21st December 2022 as part of the Startup Law (Ley 28/2022), locals have seen tourists moving next door long-term. With mass tourism endangering the city’s housing market and overall affordability, this novelty has come with some impacts. It is unreasonable to expect tourism to leave Barcelona untouched. Still, digital nomads can make some important adjustments to make their way of life more sustainable and sensitive to local residents. They are called upon to contribute to Catalan economy, by building solid relations with local businesses. In doing so, they can bring about digital innovation and promote sustainable best practices.
Barcelona: a smart city on the pathway to green and digital innovation
Differently from other poster cities, the Catalan capital city owes its revenues not only to tourism: the manufacturing industry – as per textile, automotive, electronic, home appliance, chemical, pharmaceutical, and food – ensures the diversification of its economy. Barcelona’s lively industrial sector dates in fact back to the end of the Spanish Sucession War (1701-1713). The ZAL (Zona de Actividades LogĂsticas) and the Puerto de Barcelona are still very active, welcoming with open arms digital innovation.
According to a set of 162 indicators, Barcelona is ranked as 26th world’s Innovation City for 2022-2023 two-year period. Additionally, it was the first city to be recognised as Biosphere Responsible Tourism destination back in 2011. In this regard, some initial efforts have been made in smart hospitality, yet profitability seems to get the best of Barcelona up to this day.
Innovation in Catalunya concentrates in manufacturing (69.4%) in 2021-2022, as compared to the service sector (52.9%). On the other hand, investment in the transition to sustainable practices (excluding the sourcing of raw materials) is also gaining more and more attention.
By introducing the digital nomad visa, the Spanish government plans to attract entrepreneurship and boost the tech industry in Spain. Digital nomads are in fact invited to Spain to share their experience and knowledge with the Spanish ecosystem. This will allow them to establish and cultivate beneficial business relations, that may eventually lead to the creation of a startup in the Spanish territory.
Digital nomads contributing to the local economy
Digital nomads are non-EU/EAA citizens who can enjoy the quality of life of Barcelona for just a few months up to five years (with the possibility of obtaining the permanent residency after this period), while working from remote, primarily for a non-Spanish company.
Their continued presence in the city makes them more than just tourists. Notably, they can try to propose their services to Spanish companies, to make the most of that 20% of revenues from local businesses they are entitled to generate. They can put their expertise to good use, while building relations with local professionals in their sector. This sort of collaborations could pave the way to future business opportunities.
Digital nomads are required to pay their dues honouring the conditions of the visa they are on. In their own way, they must participate in the country’s economy by paying their income tax in Spain, fixed at 24% on any earnings up to 600,000€ per year. While, any earnings above this threshold are subject to a 47% flat rate. However, tax residents of some countries are exempt from this tax regime, including residents of the US, the UK, Canada, Australia, New Zealand, and all EU member states. This means that if they already pay taxes on their foreign income in one of these countries, they will not be taxed on it a second time in Spain.
Barcelona shows a natural openness to foreigners
On 1st January 2023, 51.57% of the population of the Ciutat Vella were foreigners, only second to the district of Sant MartĂ (22.62%). That is somehow an alarming number, meaning that many Spanish are not able to afford living in the historic city centre, or simply prefer quieter zones. Curiously, Italians (with 44,618 residents) are the biggest foreign nationality in Barcelona.
According to respondents, Barcelona rank 15th in the Expat City Ranking 2023 cities for Ease of Settling In. Overall in Spain, four in five expats (80%) feel at home, against a world’s average of 62%. Interestingly, the expat community identifies Málaga as the 1st out of 49 cities, with Local Friendliness set at 89 (vs 65% globally).
Digital nomads supporting local artisans within walking distance
You may have heard about “15-minute model” that the researcher Carlos Moreno devised to assess a city’s provision of services or facilities in the most immediate proximity. Given an adequate mobility infrastructure, housing, work, food, healthcare, education, culture and leisure should be easily accessible to everyone.
Barna owes its iconic grid-like configuration to the civil engineer Idelfonso Cerdà I Sunyer and the homonymous Pla Cerdà , who promoted the creation of an urban space that makes up for the overflowing population’s needs in the 1860s. Add to this, its flat land, and you have a perfect walkable city, bringing about great environmental and health benefits.
We suggest exploring and supporting artisan shops, art galleries, and restaurants, to experiment with the local culture and cuisine in a respectful manner. As a conscious digital nomad, this is a great way to visit less beaten areas, within a stone’s throw of more touristic paths. This can allow you to get out of your comfort zone and really connect with locals, while practicing your Castilian Spanish and – why not? – have a try at Catalan.
Too often in fact today’s cities tend to look alike, with the nth international franchise, matcha, bubble tea, or brunch spot of trust. Such businesses might find an audience in tourists, digital nomads, and even in some locals. But what about channelling the creative and vibrant vibe that makes the Ciudad Condal so unique?
The digital nomad’s life: a way to build significant relations
The digital nomad’s life can be more than a prolonged stay-away time from your home country. While it is a wonderful opportunity to get to know other individual who share the same journey as you through events and co-working spaces, you can responsibly choose to have an authentic experience and develop an understanding of the complexities that characterise the city and the country that hosts you. One option does not necessarily exclude the other.
So, have a stroll in Barcelona, find your own favourite spots. Enjoy the local way of life and have fun connecting with the barcelonĂ©s and the barcelonesas, or the barcelonĂs and the barcelonines if you wish!
From the privileged perspective of a digital nomad, you can gain important insight into the Spanish market, while collaborating with local businesses. You can inject new energy and innovative ways of thinking into Catalan economy, where green and digital solutions are in high demand.
