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Spain: Remote Work Visa Introduced; Entrepreneur’s Act Rules Relaxed

January 6, 2023

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  • SpainSpain

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At a Glance

  • The Spanish government has implemented the long-awaited remote work visa which offers a one-year stay (with the possibility for a renewal) with 10-business day processing to select teleworkers.
  • The government has also relaxed rules related to permits under the Entrepreneur’s Act, including extending the maximum initial validity of permits, and expanding the definition of ‘highly qualified professional’ and ‘entrepreneurial activity,’ among other key changes.

The situation

The Spanish government has implemented the remote work visa (called the International Teleworking Visa) and related residence permit, and has adopted several changes to visas under the Entrepreneur’s Act.

A closer look

New Visa/Rule Impact

International Teleworking Visa. This visa offers a one-year stay (with the possibility of renewal) with 10-business-day processing. 

Prior to expiration, the foreign national can request an International Teleworking Residence Permit, which has a maximum validity of three years (with the possibility of renewal for another two years if all requirements are still met). This permit can also be requested in country. 

This new category provides an immigration pathway for workers who (among other requirements):

      • exclusively work on the computer, by phone or other telecommunication means from outside Spain (though work for a company located in Spain is allowed for up to 20% of the applicant’s professional activities);
      • are graduates or postgraduates from renowned universities, professional training, or renowned business schools or those with at least three years' professional experience;
      • company for whom the applicant provides professional services or works for must have had at least one year of continuous and real activity;
      • prove an employment or professional relationship of at least the last three months prior to the submission of the application; and
      • prove the company allows the worker to carry out the work activity remotely.

Entrepreneur’s Act rule changes.

      • The maximum initial validity of permits granted under the Entrepreneurs has been extended to three years, up from two.
      • Visa applicants under the Entrepreneur’s Act now only need to provide police background checks of the country(ies) they has resided at during the last two years (down from five years) plus an affidavit that they do not hold criminal records in countries where they have previously resided.
      • The definition of ‘highly qualified professional’ has been expanded to include graduates or postgraduates from universities and renowned business schools, graduates of higher vocational training, or specialists with professional experience of a comparable level of at least three years.
      • The definition of ‘entrepreneurial activity’ has been expanded and a new agency has been created to regulate these activities.
      • The duration of the permit to seek employment has been expanded from 12 to 24 months.
      • The validity of the residence permit for internships has been limited to one year (up to two years with an extension).

Most of these rules relax the immigration environment for applicants under the Entrepreneur’s Act, which is important during this time of labor shortages in Spain.

The related regulations will be clarified in the Large Companies Unit instruction notes – expected to be released by March 31, 2023.

Background

  • History of related regulation legislation. The new visa and amended regulations have been deliberated in the Spanish government since December 2021. The visa, along with the rule changes related to the Entrepreneur's Act, are welcome at a time when employers are struggling to fill positions due to various economic and social factors in Spain.
  • Remote work visa trend.
    • Although digital nomad visas and permits are not being introduced as rapidly as when the trend first started, we still see such tailored digital nomad statuses being introduced over the past months, with more in the pipeline worldwide.
    • In countries where remote work is unregulated, workers and employers may unknowingly put themselves at risk of noncompliance with many aspects of the law, exposing them to possible fines or other penalties, depending on the country. Importantly, noncompliance with regulations could result in employers losing their rights to hire foreign labor. Additionally, this type of work arrangement may have employment or tax law impacts. It will become increasingly important as such policies are developed (and in many countries where remote work is unregulated) for employers to analyze strategies and assess risks associated with implementing and/or continuing remote work policies with a trusted immigration partner.

Looking ahead

This is one of the first regulations in Spain that addresses specific measures promoting investment, growth and development in the field of entrepreneurship in Spain since the Entrepreneurs Act, published in 2013. We expect further clarifications from the government by the end of March 2023 and will publish relevant updates.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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  • SpainSpain

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