[imagesource:here]

Palma, hey?

How lovely.

Geography lessons aside (Palma is the capital city of the island of Mallorca), Spain is planning to issue so-called ‘digital nomad’ visas to non-EU citizens.

That means you’ll get to live and work in the country with the added bonus of enticing tax breaks.

According to The Guardian, eligibility hinges on a few criteria:

The visas will be offered to people who work remotely for enterprises outside Spain and who derive a maximum of 20% of their income from Spanish firms.

As the law has yet to be passed there are still some details to be hammered out but it is expected that the visa – essentially a residency permit – will be initially valid for one year, renewable for up to five years depending on the applicant’s circumstances. Close relatives, such as a spouse or children, will be eligible to join the applicant.

In order to apply, you must be able to show that you have spent at least the last 12 months working remotely. I don’t know what that means for people working with a hybrid model set-up (two days a week in the office sort of vibe).

You’ll also need to be able to show that your income is sufficient to afford the living costs in Spain – not ideal when earning in rands – and show you have an address in the country.

The average Spanish salary, according to a report published earlier this year, is €1 751 a month, or just north of R30 000 at the current exchange rate.

Tax-wise, those on the visa will be taxed at 15% for the first four years, which is well below the standard 25% base rate.

Excellent 4G cover almost everywhere in Spain is tempting some nomads to set themselves up in rural areas where rents are very low. Internet speed is among the fastest in Europe and, at 148Mbps, almost double the UK speed of 75Mbps.

Sheesh, that’s quite a reality check. I thought I was flying at 50Mbps.

Again, this visa is not yet up and running but it appears to be a matter of time. Outside of the digital nomad visa, there are other options available to South Africans.

For Spain, there’s the Spanish ‘’Non-lucrative Residency Visa’’ and for Portugal, the Portuguese ‘’Passive Income Residency Visa’’.

For more on that front, you can get in touch with Consult Immigration who will be able to assist. They specialise in advising and assisting clients from around the world with relocation to Spain and Portugal and their services include Immigration, Investment, Tax & Legal, Business, Real Estate, and Forex.

Living in Palma or Barcelona or Madrid may be expensive but smaller municipalities outside of the main tourist hubs are also incentivising remote workers.

Lonely Planet reports that some villages are offering fully furnished two-and three-bedroom apartments for as little as €450 a month.

It hasn’t taken long for news of the program to spread: launched in July, five of the 10 houses are already occupied. [Carlos García Osío of El Cantero di Letur, the Letur-based organic dairy farm behind the initiative] admits the international attention has taken them by surprise, as the original intention was to attract Spanish nationals or those already with Spanish residency.

Image: Lonely Planet

But as long as people can legally live in Spain, and are willing to declare Letur as their official residence, he says they are welcoming of all nationalities. Priority, however, is given to families with children under 12 who intend to enroll them in the local school.

It’s hoped that the arrival of new families will ensure that key services such as the village’s school and the doctor’s surgery will be able to remain open.

High-speed internet and you’re tucked away in a quaint Spanish village. There are worse situations to be in.

[sources:guardian&lonelyplanet]