For entrepreneurs and freelancers working for themselves, Spain offers two types of residency among others: residence permit with the right to self-employment (autorización de residencia por cuenta propia) and digital nomad residence permit (digital nomad). Both options are designed for people who are not bound by an employment contract and want to engage in business or provide services remotely.
Despite their similarities, they have important differences regarding income sources, taxation, and future prospects. Let's examine each of these points in detail.
Required Income and Sources
Digital Nomad
There is a minimum income that must be demonstrated to obtain residence permit (from €2,600 per month for one applicant)
The main part of income must be received outside of Spain (80% or more)
Cuenta Propia
No minimum income requirement, but income must be sufficient to support yourself and your family
No restrictions on client location
Taxes
In general, taxes for both types of residence permits are the same:
Progressive income tax (IRPF) from 19% to 47%
Value Added Tax (VAT) of 21% (for Spanish clients)
Mandatory social contributions
The difference lies not in different tax systems, but in the structure of income sources:
Digital Nomad
Clients must be predominantly foreign, and consequently VAT is not paid on income in this case.
Application of the "Beckham Law" is possible for remote workers relocating to Spain for work purposes.
Cuenta Propia
There is no such restriction, income is often received from local clients and therefore subject to VAT.
Application of the "Beckham Law" is not possible
The "Beckham Law" (Spanish: Ley Beckham) is a special preferential tax regime in Spain that allows foreign specialists who relocate to the country for work to pay taxes at a fixed low rate of 24% (on income up to €600,000 per year)
Residency Duration
Digital Nomad
Initial residence permit for 1 year (when applying at consulate) or 3 years (when applying in Spain).
After 5 years, you can apply for permanent residence, or you can renew the residence permit.
Cuenta Propia
Initial residence permit for 1 year, renewal immediately for 4 years.
Obtaining permanent residence is mandatory, which requires staying in Spain for 5 years, with a maximum absence of 10 months over the entire 5 years.
Residence Permit Processing Times
Digital Nomad
Standard processing time — 20-30 days
Cuenta Propia
Relatively long waiting period — from 2-3 months to six months.
