Spain plans to issue visas for "digital nomads" giving Britons and non-EU residents the opportunity to work at a lower cost of living with tax breaks, writes British "The Guardian".

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

As the law has yet to be passed, there are still some details to be ironed out, but it is expected that the visas, basically residence permits, will initially be valid for one year, renewable for up to five years. depending on the circumstances of the applicant. Close relatives, such as a spouse or children, will be eligible to join the new visa holders.

Applicants must come from countries outside the European Economic Community and be able to demonstrate that they have been working from home for at least one year. They must have an employment contract or, if they are freelancers, show that they have been regularly paid by a company outside Spain.

They must also show that they will earn enough to be self-sufficient and that they have an address in Spain. It is not yet clear whether they will have to undergo a criminal record check. For the first four years, they will be taxed at a rate of 15%, instead of the standard income tax of 25%.

Spain joins 15 other European countries that offer some version of a "digital nomad" visa, each with its own conditions.

In Croatia, for example, candidates must earn at least 2.300 euros per month, in Estonia 3.500 euros, in Iceland 7.100 euros, and in Portugal only 700 euros. It is thought that Spain will set a minimum monthly income of around 2.000 euros. Greece introduced a digital nomad law in October 2021, offering stays of one to three years. Applicants must have a monthly income of 3.500 euros. Some countries require you to have money in the bank – like the Czech Republic (5.500). Some, however, require mandatory payments in private health insurance.

Madrid, Valencia and Barcelona are already popular among EU digital nomads.

"It is easy to attract talent. "Barcelona is small and densely populated and cosmopolitan," says Sacha Michaud, who co-founded food delivery business Glovo in the city.

The company's staff is international and therefore, like other startups in the city, the company's language is English. The startup law aims to smooth the way for entrepreneurs through Spain's notorious bureaucracy. Currently, it takes an average of 20 to 30 days to set up a company here, compared to one day in the Netherlands or Britain.

Excellent internet coverage almost everywhere in Spain lures some "digital nomads" to settle in rural areas, where rents are very low. The average internet speed is among the best in Europe (148 Mbps), almost double the speed in the UK.

However, for residents of cities like Madrid and Barcelona, ​​one negative effect is that nomads drive up rents, as people working remotely for American or British companies can command much higher wages and pay higher rents than locals. According to the latest statistics, the average monthly salary in Spain is 1.751 euros, which is about 20 percent less than the EU average of 2.194 euros.