đŽApril 2025 – Your opportunity to reside in Spain đȘđž Part 2
By: Antonio Villena
đŽWhy donât we pay taxes if we apply for the Digital Nomad residency in April 2025?
đHereâs how this little-known legal benefit works:
If you apply for the Digital Nomad residency in April 2025, the Spanish Tax Agency (Hacienda) will evaluate your annual income but divide it over the 12 months of the year. Whatâs the result?
â Your average monthly income will be below the minimum threshold required to pay taxes, so you wonât owe any.
â In your first year, youâll only pay âŹ86 in social security contributions.
â
After completing one year with the residency, you can switch to a permit that allows you to work in Spain.
With this switch, youâll continue paying very low taxesâor possibly none at all.
Social security contributions will also remain at a minimum rate.
â¶In summary:
đYou register in April â youâre taxed for only 9 months â after one year, you change your residency â you get a 4-year work permit â you still pay little or no tax â before this residency expires, youâre eligible for permanent residency
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