Whether you’re an EU or non-EU citizen, if you are planning on working remotely in Spain for an EU company, there are tax, legal, and practical considerations to take into account.
This guide walks you through everything you need to know to relocate smoothly and comply with the regulations. It draws on the direct experience of an Expat Expert, Shane Dooley. Shane is an Irish citizen who lives in Spain and has worked remotely for EU Companies for 8 years — two as a direct employee, the rest as an autónomo (self-employed person in Spain). In January 2025, he established a limited company (sociedad limitada (SL)).
Legal Status and Right to Work
EU Citizens
As an EU citizen, you benefit from the freedom of movement within the EU. This means you can move to Spain and work remotely for an EU company outside of Spain. However, there are still critical administrative steps to follow:
Steps for an EU citizen to move to Spain
- You’ll need to register your residence with your local municipality. They’ll issue you with a ‘Padrón,’ the short name for a Certificado de Empadronamiento.
- You must obtain a Número de Identificación de Extranjero (NIE), which is essential for legal and financial matters in Spain, but it doesn’t give you any residency rights.
- If you plan to stay in Spain for more than three months, you must register with the Central Registry of Foreign Nationals and obtain a Certificado de Registro de Ciudadano de la Unión (CUE), commonly known as the green certificate. Note: Sometimes people refer to your CUE as your “NIE card”. The reason is that your NIE is printed on your CUE.
Shane advises: It is a good idea to engage an expert specializing in residency registration, especially if you have limited Spanish. “The process was straightforward, with the company taking me through the documentation required. They then arranged and led a meeting with the local police to validate my application.”
READ ALSO >>> Residency in Spain for EU Citizens
Non-EU Citizens Working for EU Companies
If you are a non-EU citizen, you’ll need a visa that allows you to work in Spain. For most remote workers living in Spain, the Spanish Digital Nomad Visa is the best option. This visa allows you to live in Spain and work remotely for an EU company.
Important: The digital nomad visa can be requested either as an employee or a self-employed worker. That means you can apply if you have a labor contract and your employer allows you to work remotely, or if you invoice clients for your services. The income you earn from Spanish clients cannot exceed 20% of your total income.
Alternatives
If the Digital Nomad visa doesn’t suit your situation, other Spanish work permit options include the Entrepreneur Visa (Visa de Emprendedor) or the EU Blue Card for highly skilled professionals.
READ ALSO >>> Spain Work Visa Guide – How to Qualify & Apply
Tax Implications
Residency Status Determination
Understanding your tax residency is essential when working remotely in Spain for an EU company. You are generally considered a Spanish tax resident if you spend more than 183 days in Spain during a calendar year, even if those days are not consecutive. You may also be considered a Spanish tax resident if your main economic interests or close family reside in Spain, regardless of physical presence. If you spend significant time in Spain but wish to maintain tax residency in another EU country, you must demonstrate that your personal and economic ties are more substantial in that country.
Taxation for Spanish Tax Residents
As a Spanish tax resident, you are taxed on your worldwide income. Spain has tax treaties with all EU countries to prevent double taxation, determining which country has the primary right to tax various types of income. Relief from double taxation is usually provided either by exempting foreign income from Spanish tax or by allowing a credit for taxes paid abroad against your Spanish tax liability. You must file an annual tax return (Declaración de la Renta) reporting all income.
If you hold assets abroad worth over €50,000, you must also submit the Modelo 720 declaration.
Shane’s advice is:
“Talk to a local gestor who speaks your language and will help you navigate the options. Gestor fees are relatively low and generally have legal, accounting, and taxation under one roof.”
READ ALSO >>> Spanish Tax System Guide >> Expat Essentials 2025
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.
Social Security Contributions
Working remotely for an EU company while living in Spain raises important questions about social security coverage. Under EU regulations, you are subject to the social security legislation of only one country at a time, typically the one where you physically perform your work.
- A1 Certificate
If your EU employer lacks a permanent establishment in Spain, you may continue paying social security in your employer’s country for up to 24 months (extendable in some cases) by obtaining an A1 Certificate from the authorities of that country.
In Shane’s case, his company’s Finance department supported him through the social security process. However, “some basic Spanish was necessary when meeting with the social security administrators,” he adds.- Note: Not all EU countries offer an A1 certificate yet, so do check with your employer.
- Long-Term Implications
You’ll generally need to contribute to the Spanish social security system for stays longer than two years. This may require your employer to register with Spanish authorities or make alternative arrangements, such as becoming self-employed in Spain. - Digital Nomads
If you are self-employed, you must register for Spanish social security, typically as self-employed (autónomo), making contributions to access healthcare and benefits. If a foreign company employs you, your employer is responsible for paying your social security contributions. You can apply for the A1 form, or the company must register in Spain (this does not create tax obligations). - Pension Considerations
The EU has mechanisms for combining pension rights earned in different member states. When you reach retirement age, each country where you’ve worked will pay its share of your pension based on your contribution periods.
It is pretty common for companies to assist their Expat employees with social security matters.
“When I moved to Spain, I started as a contractor. My employer assisted me in registering for Social Security and as an Autónomo. I later worked as a full-time employee for a Spanish company that again handled all the administration aspects.” – Shnae Dooley
Employment Structures
Direct Employment with an EU Company
Maintaining direct employment with your (non-Spanish) EU company while working from Spain presents several considerations.
If your employer doesn’t have a legal entity in Spain, your presence in Spain could potentially create a “permanent establishment” for your employer, subjecting them to Spanish corporate taxation. This risk increases with the length of your stay and your role in the company.
Permanent establishment applies when the employee carries out so many activities or generates so much revenue that they are no longer just an employee but effectively represent the company in Spain. – Louis Williams – Spain Cross-Border Tax specialist
Employer of Record (EOR)
Many EU companies partner with an Employer of Record (EOR) service in Spain to manage these obligations or request that employees transition to a contractor relationship. An EOR is a third-party service that employs workers on behalf of another company, handling all administrative employer responsibilities. The EOR becomes the official employer for legal and tax purposes, while the client company directs the employee’s work.
- Benefits
- Your EU employer doesn’t need to establish a legal entity in Spain
- Guaranteed compliance with Spanish employment law
- Simplified administration for both you and your employer
- Access to Spanish benefits and social security
- Drawbacks
- Additional cost (typically 15-20% on top of your salary)
- Potential complications regarding company benefits and equity
- One more layer between you and your actual employer
Services like Remote.com, Deel, and Omnipresent specialize in managing international remote employment and have specific expertise in Spanish regulations.
Digital Nomad/Contractor/Freelance Setup (Autónomo)
Many remote workers in Spain opt to register as autónomo and provide services to their EU employer as contractors.
To become an autónomo, you must register with the Spanish tax authorities (Agencia Tributaria) and social security administration (Tesorería General de la Seguridad Social (TGSS)).
Tax Benefits
Spain offers several tax incentives for autónomos, including:
- Reduced social security contributions for new autónomos
Starting at around €60 per month for the first year, gradually increasing - Business expense deductions
E.g., home office costs, internet, and professional development - Tax Breaks for Some DNV Holders
Reduced income tax rate (15% vs. 24%) if you qualify for the Beckham Law or if you create a new company and benefit from the reduced corporate tax rate for new businesses.
VAT Considerations
Services provided to EU businesses are typically subject to the reverse charge mechanism, meaning you don’t charge Spanish VAT. However, you must still file quarterly VAT returns (Modelo 303) and annual summaries (Modelo 390).
The companies Shane has worked for in Spain have been very flexible in allowing him to choose the best structure for his circumstances.
“The benefits of local employment were great when I was starting a family, and now, I’m benefitting from operating a limited company. “Speak to your employer and engage local professionals to choose the best fit for your family.”
Need help with your Spain visa or residency?
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Practical Considerations
Banking and Payments
Managing your finances effectively is essential when working remotely from Spain:
- Spanish Bank Account
While not always legally required, opening a Spanish bank account immensely simplifies life in Spain - Currency Considerations
If your EU employer pays you in a currency other than euros, consider using services like Wise or Revolut to minimize currency conversion fees
Healthcare Coverage
Ensuring proper healthcare coverage is vital when relocating to Spain:
- European Health Insurance Card (EHIC)
For short-term stays, EU citizens can use their EHIC for emergency treatment. However, this is not suitable for long-term residents. - Public Healthcare Access
As a worker contributing to Spanish social security (either as an employee or autónomo), you’ll gain access to Spain’s public healthcare system, which is comprehensive and highly regarded. - Private Health Insurance
Many remote workers opt for Spanish private health insurance, which offers shorter waiting times and additional services. Depending on age and coverage, plans typically cost between €50-150 per month.
READ ALSO >>> Spanish Health Insurance for Residency & Visas
Work-Life Integration in Spain
Adjusting to Spanish work culture while preserving productivity may necessitate some adaptation:
- Home Office Setup
Spanish apartments tend to be smaller than you might be used to. Creating an ergonomic workspace may require creative solutions. High-speed fiber optic internet connections are generally excellent throughout Spain. A reliable VPN may be necessary to access resources specific to your home country. - Coworking Spaces
Spain has a thriving coworking scene, particularly in Madrid, Barcelona, Valencia, and Málaga. Monthly memberships typically range from €100-300 depending on the city and amenities. - Networking Opportunities
Join Meetup or industry-specific associations to connect with fellow professionals. Major cities regularly host networking events for international professionals and digital nomads. - Spanish Business Hours
Spain operates on a different daily rhythm from many EU countries. The traditional workday can run from 9 AM to 7 PM with a more extended lunch break, though remote workers typically maintain the schedule of their clients.
In Shane’s case, he has not experienced many problems “outside the usual challenges of remote working. The time zone difference allows me to start working before my Irish colleagues, and I follow Irish national holidays to better align with our company calendar. Occasionally, this poses minor scheduling challenges around Spanish school holidays.”
Summary
Comparison between working remotely in Spain for an EU company for EU and non-EU Citizens
| Aspect | EU Citizens (non-Spanish) | Non-EU Citizens |
|---|---|---|
| Tax Residency | Subject to Spanish taxation if in Spain >183 days/year | Same as for EU citizens |
| Visa/Residency | Only need to register for residency (NIE and CUE) | Low risk of creating a permanent establishment (PE) for the employer in Spain |
| Employment Status | Can be a direct employee of the EU company | Usually must be a contractor |
| Social Security | May retain home-country coverage via A1 certificate | Usually must contribute to the Spanish social security system |
| Market Engagement Risks | Low risk of creating a permanent establishment (PE) for employer in Spain | Higher risk of creating PE |
| Bureaucracy & Compliance | Simpler registration and fewer visa restrictions, but must navigate tax treaties | Stricter visa requirements, employment constraints, and more complex compliance |
Conclusion
Working remotely in Spain for an EU company offers an enviable lifestyle and career continuity, but requires careful navigation of many considerations. With proper planning and professional support, you can successfully balance compliance requirements with enjoying all that Spanish life has to offer.
Shane emphasizes the benefit of employing the experts in Spanish immigration, tax, and relocation: “If language is going to be a challenge, work with local services to speed up applications and get the best advice tailored to your circumstances.”
The key to success lies in determining the most appropriate employment structure based on your specific circumstances, understanding your tax obligations in Spain and your employer’s country, and ensuring you maintain proper documentation of your status and activities.
As remote work regulations evolve across the EU, staying informed about changing requirements will help you maintain compliance while enjoying the flexibility and quality of life that initially drew you to Spain.
