Remote working in Spain is an attractive option for non-Spanish citizens. The country offers a unique combination of high quality of life, lower living costs, and great weather. Today’s acceptance of remote work in Spain (Madrid and Catalonia registered 22.7% and 14.9% of their respective workforces as remote working in 2023), coupled with technological developments to support it, is very appealing and doable.
However, legal, financial, tax, and other factors must be considered to make this happen. These are further potentially complicated by nationality. As freelancers, EU citizens can live and work freely (subject to registering as residents and autónomo and providing proof of financial means and healthcare). On the other hand, non-EU nationals, including Americans, require a visa, such as Spain’s Digital Nomad Visa (DNV).
If you are a US citizen, taxation depends on your residency status. The US-Spain tax treaty helps prevent double taxation, but you must continue to file with the IRS. Further restrictions exist on whether you have a W-2 or 1099 work status. And working with US clients can present time zone challenges.
This guide is part of our remote working in Spain content but specifically aimed at you if you are looking to work remotely in Spain for a US company, either as an employee or as a freelancer with US clients.
Benefits of Working Remotely in Spain for US Companies
As of the first quarter of 2024, 37.5% of Spanish enterprises with 10 or more employees permitted remote working, increasing to 80.4% among companies with over 250 employees. Working remotely in Spain for a US company offers numerous advantages. Remote workers can earn higher US salaries while benefiting from Spain’s lower cost of living, making daily expenses more affordable. Spain’s rich culture, beautiful landscapes, and relaxed lifestyle enhance work-life balance.
The Digital Nomad Visa (DNV) can provide lower tax rates (24% for six years) if you satisfy the requirements and apply for this. With this visa, many US Expats enjoy living and working in thriving remote work communities in cities like Barcelona, Madrid, Valencia, and the Canary Islands.
Additionally, Spain’s location allows easy travel to the Schengen area and other European countries, making it an ideal base for professional and leisure opportunities while working for US employers.
Key Considerations When Working Remotely for a US Company in Spain
Time Difference
Time zone management presents both challenges and opportunities. Spain’s CET (GMT+1) timezone allows for productive overlap with US East Coast hours, with many remote workers adopting schedules like 12-8 PM CET to maximize collaboration time.
However, US time zones further west are up to nine hours behind Spain. Flexibility is required for coinciding work schedules, meetings, and deadlines.
Note: The Canary Islands operate in the GMT timezone and are an hour ‘closer’ to the US, making things easier.
Banking and Currency
Banking and currency considerations are vital. Some US companies pay in dollars, so exchange rate fluctuations and transfer fees will affect your Spanish-based Euro accounts. Avoid this by setting up a multi-currency account or using services like Wise, N26, or Revolut to manage finances efficiently.
However, while Wise and Revolut are useful, some businesses may prefer SEPA transfers for salary payments. And for paying taxes, it’s better to use a bank account that the Tax Agency and Social Security. A N26 Bank Account can also be used.
Some Spanish banks may require proof of tax residency (residencia fiscal) to open certain accounts, even for non-resident visa holders.
READ ALSO >>> Best Banks in Spain for Expats
When using cards in Spain, it’s essential to avoid dynamic currency conversion (where you are offered the option to pay in your card’s home currency).
Healthcare
Healthcare access depends on your employment status. Contractors registering as autónomo (self-employed) gain access to Spain’s public healthcare through social security contributions.
Monthly autónomo social security payments vary depending on your visa and income. W-2 employees typically need private insurance. In rare cases, W-2 employees may qualify for public healthcare through their employer contributions if the employer registers with Spain’s Social Security system.
DNV holders must provide private health insurance with no co-payments or waiting periods.
In practice, many remote workers, autónomo or not, rely on private health insurance in Spain.
READ ALSO >> Finding Healthcare in Spain >> Private vs Public Systems
Nationality
For US Citizens
For the DNV, eligibility and the process are the same for W-2 and 1099 workers. However, for W-2 employees, it depends on whether the employer registers the company in Spain to pay social security contributions or uses a US Certificate of Coverage. The issue with the latter is that Unidad de Grandes Empresas (UGE)* does not currently recognize the US certificate as valid. This means the granting of a DNV is not guaranteed.
If you have W-2 employment status, you may want to consider working as a contractor with a 1099 status. This will afford you more visa flexibility and more straightforward compliance requirements.
US citizens must continue filing US tax returns regardless of location, though you may qualify for the Foreign Earned Income Exclusion (FEIE).
For the record, the Non-Lucrative Visa is not an option as it explicitly prohibits work activities.
*The UGE is the Spanish government department handling visa applications for highly skilled workers, investors, and now digital nomads.
For EU Citizens
EU citizens working remotely for US companies benefit from Spain’s simplified EU citizen residency process. They enjoy freedom of movement and can live and work in Spain without a visa. Registration as a resident is mandatory when staying beyond 90 days, and you must obtain an NIE (Número de Identificación de Extranjero) and show proof of healthcare coverage and sufficient financial means.
Unlike US citizens, EU citizens don’t have dual tax obligations but must comply with Spanish tax laws. This means declaring worldwide income while complying with their home country’s tax requirements.
For UK and Non-EU/US Citizens
Coming from ‘Third countries’, visa requirements and options are similar to those of US citizens without the aforementioned US-specific factors. UK citizens, post-Brexit, now follow the same procedures as other non-EU nationals. The application process varies by nationality, with some countries requiring additional paperwork or facing longer processing times.
Best Visa Options for Working Remotely in Spain for a US Company
Digital Nomad Visa (DNV)
For remote workers aiming to work for US companies from Spain, the DNV offers the most straightforward path. This visa allows non-EU citizens to live and work remotely in Spain for up to five years. The initial renewable period is three years if you apply from within Spain and one year when applying from abroad. The DNV requires proof of a minimum monthly income of €2,763 (2025 level), with higher thresholds for those bringing family members. ) Income thresholds may change annually as they are based on Spain’s minimum wage.
Currently, the DNV presents challenges for US W-2 employees (as mentioned above), making it more suitable for contractors and freelancers. Successful applicants benefit from a reduced 24% tax rate on income up to €600,000 annually for up to six years.
The visa allows up to 20% of income from Spanish sources, providing flexibility for local opportunities while maintaining primary employment with US (and other non-Spanish) companies. After renewal, holders can apply for permanent residency after five years.
For full details on the DNV, see Spain Digital Nomad Visa >> Full 2025 Guide + Easy Application Tip
Need help with your Spain visa?
Raquel and her expert immigration team are ready to help! Schedule a 30-minute consultation with them to explore your best options, understand the process, and get personalized answers to your questions.
Self-Employment Visa
The Self-Employment visa (Autónomo visa) allows non-EU citizens to live and work independently in Spain. Key requirements include relevant professional qualifications, a detailed business plan, and proof of sufficient funds to sustain the business.
The application process is more complex than for a DNV, and Autónomos are subject to standard progressive tax rates (19%-47%). They must pay monthly Social Security contributions, starting at approximately €230/month in 2025.
Consequently, this option suits those planning to establish a more permanent business presence in Spain.
Tax and Financial Implications, Complexities and Challenges
Employment Structure Impacts
The most significant complexity lies in employment classification. W-2 employees face particular challenges as US employers must establish a Spanish entity to comply with local labor laws. Currently, W-2 employees are not eligible for the Digital Nomad Visa due to Social Security certification issues. 1099 Contractors have more flexibility but must register as autónomos in Spain.
Tax Implications
Tax implications vary based on residency status. Several criteria qualify you as tax resident in Spain, two being:
- Spending more than 183 days in Spain makes you a tax resident
- Tax residency can also apply if Spain is your primary economic center or if your spouse/dependent children reside in Spain
- US citizens must continue filing US tax returns regardless of location, though the US-Spain tax treaty prevents double taxation.
Even as a non-tax resident, you might need to declare your income.
Important Note: Tax obligations as Autónomo are different from those of a physical person
Freelancers and contractors pay progressive Spanish income tax rates between 19-47%. The Digital Nomad Visa offers a reduced 24% tax rate for qualifying remote workers (The Beckham Law) available to contractors, not W-2 employees.
Foreign Tax Credit (FTC)
FTC allows US taxpayers to offset US tax liability by claiming a credit for income taxes paid to Spain. You still need to report your global income to the IRS, but you can claim a dollar-for-dollar credit for the Spanish income taxes paid.
Foreign Earned Income Exclusion (FEIE)
FEIE excludes up to $126,500 (2024 limit) in foreign-earned income from US taxation. To qualify, you must meet one of two tests:
- Physical Presence Test
Spend 330 full days outside the US in a 12-month period - Bona Fide Residence Test
Be a tax resident of Spain for a full tax year
The exclusion applies only to earned income (salary or self-employment income), not passive income (investments, rentals, etc.).
Important Note: You cannot claim FEIE and FTC on the same income, but you can use FTC for income above the FEIE limit.
It is highly recommended that you use the services of a Spanish tax expert to understand your specific tax implications fully.
READ ALSO >>> Wealth Tax in Spain – How much you’ll pay
Financial Considerations
Remote workers must navigate:
- Social Security Contributions
Spain and the US have a Totalization Agreement, which helps prevent double Social Security taxation. However, it does not apply in all cases. Freelancers must pay into the Spanish system, while W-2 employees might need private insurance if their employer does not contribute. - VAT Obligations
The standard rate is 21%. However, services provided to US clients may be exempt from VAT under the “use and enjoyment” rule. This depends on the nature of the service and the client (business or final client). - Spanish wealth tax on global assets
Remote workers in Spain may be subject to Wealth Tax. Tax residents pay on worldwide assets, while non-residents pay only on Spanish assets. Exemptions vary by region, with Madrid and Andalucía offering 100% rebates. DNV holders who qualify for The Beckham Law are exempt.
Need Tax Advice?
Need clarity on your tax obligations and a solid financial strategy ? Schedule a consultation with our recommended tax advisor, Louis, to gain complete clarity and peace of mind.
Compliance Requirements
Working remotely without proper documentation risks significant penalties. Companies may face fines and tax obligations if Spain determines they have an unofficial presence through remote workers. Some US employers misclassify workers as contractors instead of employees. This can create permanent establishment risks for the US company.
Most US companies prefer contractor relationships to avoid establishing Spanish entities and associated compliance requirements.
Form Modelo 720
Remote workers in Spain must complete this if they have foreign assets exceeding €50,000 in any of three categories:
- Bank accounts
- Investments
- Real estate
The declaration is informative and not a tax payment, but failing to submit it can result in severe penalties.
Once filed, the Modelo 720 only needs to be submitted again if asset values increase by more than €20,000 in subsequent years.
Form Modelo 100
All tax residents in Spain earning over €22,000 from a single employer or €15,000 from multiple employers must file this annual tax return form.
Remote workers earning income from foreign clients must declare it under Spain’s personal income tax (IRPF). Depending on Spain’s double taxation treaties with other countries, tax deductions may apply. The filing period runs from April to June each year.
Both forms are crucial for compliance. Modelo 720 ensures transparency of foreign assets, while Modelo 100 calculates overall tax liability. Failure to file these forms can result in significant penalties, making it essential for remote workers to understand and fulfill these obligations.
Final Tips for Working Remotely in Spain for a US Company
Success in working remotely from Spain for a US company requires careful planning and preparation.
- Choose the Right Visa
The DNV is the best option for remote workers. It offers tax benefits and allows you to stay in Spain while working for a US company. - Get Expert Tax Advice
I never forget someone saying to me: “You don’t move to Spain to enjoy less tax.” To avoid double taxation, consult a US-Spain tax specialist who understands tax systems and treaties. - Be Prepared for Spanish Bureaucracy
Spanish bureaucracy moves slowly, so administrative processes should be started early. Allow extra time for visa processing, NIE applications, and tax registrations. Bank account setup and apartment rentals often require multiple visits and extensive documentation. - Join Platforms like Meetup, Facebook Groups, and LinkedIn
Connect with other remote workers through local digital nomad communities and coworking spaces – they’re invaluable resources for navigating practical challenges and administrative hurdles.
Conclusion
Spain is an ideal destination for remote workers, offering high U.S. salaries, an exceptional quality of life, a vibrant culture, and great weather. Recent policy changes have attracted more professionals, fueling international communities in cities like Valencia and Barcelona.
However, a smooth transition requires careful planning—from visa requirements to tax obligations and employment classification. The Digital Nomad Visa (DNV) provides a clear path for contractors, while W-2 employees face added complexities with Social Security certification.
Before relocating, consult legal and tax experts, research visa rules, and connect with expat communities. With the proper preparation, remote work in Spain can be an incredible life experience.
