For months, company owners looking to apply for Spain’s Digital Nomad Visa faced a key uncertainty: the law lacked clear guidance on whether people running their own companies could qualify. In early 2024 MoveWise introduced one of the first successful cases, demonstrating that, with the right legal structure and documentation, company owners can indeed meet the requirements. Since then, approvals have followed, confirming a clear, reliable path for business owners relocating to Spain.
Who qualifies as a company owner?
One of the key requirements to apply for Spain’s Digital Nomad Visa is that the applicant must have a professional relationship with an incorporated company, either as an employee or an independent contractor. However, the law makes no reference to whether the applicant can or cannot be the owner of that company.
The company can be a one-person business, have multiple directors, or even employ other staff and contractors.
This legal ambiguity, combined with Move Wise’s determination to push boundaries and find practical solutions, led to the development of a new framework tailored for a specific group: non-EU nationals who own and operate an incorporated business registered outside of Spain.
Company Owner Profiles
- Company Owner – Employee
A wide number of Digital Nomad Visa applicants are company owners (typically with 50–100% shareholding) who also hold formal employment positions within their own businesses. While the law does not explicitly address this scenario, Spain accepts applications from individuals who can demonstrate a legitimate employment relationship with a foreign company they own when provided the structure meets all visa requirements.
They hold a valid employment contract with their own company, receive regular payslips, and are paid directly from the company account into their personal bank account.
It’s important to note that the company must be based in a country that issues an A1 Certificate of Social Security coverage, which is recognized by Spain such as UK, US, Canada, Russia, China and some Latin American countries.
Spanish employers do not qualify under this visa, and the employment relationship must be structured with a foreign legal entity.
- Company Owner – Contractor
Another common scenario involves freelancers or independent contractors who are also company owners (typically with 25% sharehoding, but also 50–100% shareholding). These applicants are non-EU nationals working remotely for their own incorporated company, which is based outside of Spain.
In this case, the individual maintains a freelancer or contractor relationship with their own company through aformal service agreement, issuing invoices as an individual to their business. Payments are then transferred from the company account to their personal bank account based on these invoices.
From a visa perspective, this configuration aligns with that of a self-employed worker, but with additional documentation to establish business ownership and legitimacy.
Key Docs for Company Owners Application
While the visa application process generally follows the standard format for either employees or contractors, applicants who are also company owners must submit additional documentation to verify the legitimacy of their business. This is essential to demonstrate that the company is actively operating and that the applicant’s relationship with the business is genuine.
Key documents required include:
- Company Owner Presentation Letter detailing the company’s structure and business activities
- Proof of Shareholding (such as shareholder certificates or registry entries)
- Contracts or Agreements with Clients (e.g., service contracts, purchase orders)
- Company Bank Statements reflecting business transactions
- Invoices Issued by the Company
- Most Recent Corporate Tax Return
- Proof of Business Expenses
- Social Security Documentation, if applicable in case the company has other employees.
Providing comprehensive and well-organized evidence is critical to ensuring a smooth application process and increasing the likelihood of visa approval.
It’s advisable to have the official documents legalized and sworn translated (e.g. proof of shares), since this is one of the most common additional requests received from the immigration office
Tax Considerations: What You Need to Know
The two scenarios described earlier come with very different tax implications in Spain. Especially for those applying under the employee model, it’s essential to understand the legal risks and how Spanish tax law views this setup.
- Company Owner – Employee
While some company owners apply for Spain’s Digital Nomad Visa as employees of their own foreign companies, this structure is not considered legitimate under Spanish tax law.
According to Spanish legislation, if you own more than 25% of a company, you cannot be considered a legitimate employee of that company for tax purposes. Instead, you are treated as a self-employed professional (autónomo) even if you hold a valid employment contract and an A1 social security certificate from another country. This misclassification can lead to significant consequences, especially for those hoping to benefit from Spain’s Beckham Law tax regime (flat tax rate of 24% on labour income only).
Company owners with more than 25% ownership are generally excluded from Beckham Law, even if they enter Spain under a Digital Nomad Visa as employees.
How to remain eligible for Beckham Law:
- Transfer more than 75% of the company shares to someone else, reducing your ownership to below 25%
- Resign from your role as company director
Another tax implication is the risk of Permanent Establishment. If the Spanish tax authorities determine that your company is operating a Permanent Establishment in Spain through your activities, the implications are severe. You could lose eligibility for the Beckham Law and be required to pay:
- All labour taxes saved under Beckham, plus interest
- Dividend and capital gains taxes that were previously exempt, plus interest
- Corporate taxes not paid in Spain, plus interest, and a penalty of 40% to 100% of the unpaid tax
How to avoid Permanent Establishment:
- Hold an employment role unrelated to the core business of the company
- Do not sign contracts or make company decisions while in Spain
- Avoid direct interaction with company clients while in Spain
- Do not rent or register anything in Spain in the company’s name
- Do not attend client meetings in Spain
- Receive a salary that is appropriate for your role and level of seniority
For company owners applying for Spain’s Digital Nomad Visa under the contractor or freelancer configuration, the fiscal landscape is more favourable.
From a Spanish tax perspective, working as a self-employed professional (autónomo) and invoicing your own foreign company is a valid and compliant structure as long as the majority of the company’s revenue (or profit) is reported as personal income in Spain and taxed accordingly.
This means the contractor pays Spanish income tax and social security as an autónomo, based on the full or near-full revenue generated by their company abroad.
The risk is when the contractor only pays themselves the minimum income required for visa purposes, and leaves the majority of company profits abroad. In the event of a tax audit, Spanish authorities may Classify the business activity as a Permanent Establishment (PE) in Spain and/or d termine that the income declared is not at market value.
This can lead to:
- Corporate tax obligations in Spain on the full foreign company profits
- Penalties of 40% to 100% of unpaid corporate tax
- Interest charges on all unpaid taxes
How to stay compliant and avoid the risk:
- Declare and pay Spanish taxes on the full revenue or profit earned through your foreign company
- Operate fully as a Spanish autónomo, even if the business entity remains abroad
- Keep thorough and transparent financial records
When managed properly, this structure allows you to maintain your company abroad and use it as the legal basis for your visa, while remaining compliant with Spanish tax law.
⚠️Given the complexity and high risk of this structure, a professional tax consultation is strongly recommended. Each case requires individual analysis to ensure compliance and avoid costly tax liabilities in Spain.
A Clear Path Forward for Company Owners
Company owners can now legitimately qualify for Spain’s Digital Nomad Visa, a major step forward made possible by MoveWise’s pioneering work in successfully introducing and structuring the first accepted cases.
Thanks to our legal insight and strategic approach, the once-uncertain position of business owners has become a proven and replicable path. Whether applying as an employee or contractor, non-EU company owners now have clear options when the application is correctly built, supported with the right documentation, and structured to avoid long-term tax risks.
The non-lucrative visa for Spain offers a fantastic opportunity to live abroad without the need for employment, granting you the freedom to explore and enjoy the country’s vibrant culture and relaxed lifestyle.
Ready to embark on your next adventure?
While the requirements for obtaining a Digital Nomad visa for Spain are straightforward, preparing the necessary documents and navigating the application process can be challenging. Mistakes or incomplete paperwork could put your application at risk. If you have any doubts or questions about the Digital Nomad Visa process,book a free consultation with MoveWise.
