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WORKING IN SPAIN

Spain’s government eyes €31 minimum wage rise to €996

Spain’s left-wing coalition government has proposed raising the minimum wage for the second time in the last six months to almost €1,000 in 14 payments, a move that could benefit 2 million people in the country. 

spain minimum wage
Despite job insecurity, Spain has the seventh highest minimum wages in the EU. Photo: Josep Lago

Spain’s second deputy prime minister and Labour Minister Yolanda Díaz is pushing for the country’s minimum wage – el Salario Mínimo Interprofesional (SMI) – to be increased again. 

“What would I like? For there to be a minimum wage of €1,000,” she told journalists on Monday.

Díaz did not disclose the exact salary increase but the head of top Spanish workers’ union UGT, Mari Cruz Vicente, has revealed the exact figures proposed by the Unidas Podemos politician.

The increase would be of €31 from the current €965 to €996. This would apply to full-time work contracts, it refers to a gross amount (pre-tax) and it would be paid in 14 different payments as is the standard in Spain. 

The draft decree will first have to be debated by business associations, unions and members of the Spanish cabinet to ensure the minimum wage rise actually comes into force. 

Last September, the Spanish Council of Ministers approved a €15 rise in el salario mínimo from €950 to €965, a bill which was again spearheaded by Yolanda Díaz.

“There’s no better weapon in the fight against poverty than this,” Díaz argued, who also defended “raising wages in general”.

This previous rise in minimum wages in Spain resulted in the increase of €8 in social security contributions for the country’s self-employed workers up to €294 a month, a figure that could increase further still for many under new plans to raise rates based on real earnings.  

Even though job insecurity and unemployment remain relatively high in Spain, the country has the seventh highest minimum wage rate in the EU. 

The gross amount of €1,126, which is the equivalent of €965 but in twelve payments a year, is higher than Italy’s or Greece’s minimum wage but considerably lower than France’s (€1,603/month), Germany’s (€1,621), Belgium’s (€1,658), the Netherlands’ (€1,725) or Ireland’s (€1,775). 

The Spanish government on Thursday managed to pass a long-awaited labour reform aimed at ending rampant job insecurity with a majority of just one, but it has emerged that a PP deputy accidentally voted for the legislation and in doing so tipped the balance in favour of the government.

This will also lead to a salary increase for some 73,000 workers in Spain who belong to multi-service companies that offer cleaning, gardening, maintenance and other services.

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WORKING IN SPAIN

Your questions answered about Spain’s digital nomad visa

Spain's long-awaited digital nomad visa is finally available, but there is still much confusion about it, so we've answered all your burning questions.

Your questions answered about Spain's digital nomad visa

Spain’s Startups Law, which also introduced a new digital nomad visa, was approved at the end of 2022, but didn’t come into force until January 2023 and all the details are only just now being revealed. 

From how much money you need to your tax obligations and if you can bring family, members, here are all your questions answered. 

What are the financial requirements to apply for the visa?

You must prove that you earn 200 percent of the SMI or Minimum Interprofessional Salary. The current minimum wage in Spain is €1,000 per month (across 14 payments) or €1,166.67 across 12 payments.

Keep in mind though that the minimum wage is currently being re-evaluated and is likely to go up to €1,082 (across 14 payments) per month in the near future.

This means that currently, you must be able to show that you will have an income of at least €2,333.34 per month or €28,000 per year, but it is likely this will increase. You can prove this amount either with job contracts, invoices or bank statements.

Can I bring family members with me on the visa?

Yes, you are permitted to bring partners and children with you to Spain on the digital nomad visa.

In order to add a family member, however, you must prove that you have an extra 75 percent of the SMI or minimum wage. This currently equates to an extra €875. For each additional family member after this, such as children, you will have to prove you have an extra 25 percent of the SMI, currently €291.66.

READ ALSO: Ten of the best cities for digital nomads to move to in Spain

Do I need private health care?

You must also make sure that you have either private or public health insurance, simply getting travel insurance with health coverage is not enough.

The Spanish government mentions the option of getting public health insurance instead of private cover, but it is not yet clear whether this means that you will have to contribute to the social security system or be eligible for the convenio especial – the public pay-in scheme.

Do I have to have any professional qualifications? 

You must prove that you either have professional qualifications or a degree relating to your job or that you have at least 3 years’ experience working in your field. 

How long is the visa valid for?

The visa will be valid for an initial period of one year, however, it can be renewed for up to five years. After that, if you want to continue living in Spain, you will be able to apply for permanent residency.

Does the visa give me access to travel around the EU?

Yes, once you have your visa and you’re in Spain, you will be able to apply for a residency card. This will allow you to travel throughout the EU during the time that you’re living in Spain.

Keep in mind though, it won’t give you the right to work or live in other EU countries, but you will be able to go for short breaks. 

How long do I have to stay in Spain for the visa to be valid?

Many digital nomads choose to split their time between different countries. If this is your case, and you want to split your time between back home in the US or the UK for example, you must make sure you stay in Spain for a maximum of 6 months per year for your visa to remain valid.

Do I have to pay tax in Spain?

Yes. If you stay longer than 183 days, then you will be considered a tax resident in Spain. This means that any money you earn while working in Spain, even if it comes from clients or companies abroad will be taxable.

However, the digital nomad visa grants you tax benefits, such as being able to pay the Non-Residents Tax Rate (IRNR) rather than the regular progressive income tax (IRPF) that Spain’s resident workers pay.

Non-Resident Tax was previously only applicable to non-residents such as second-home owners, but an exception has been made for digital nomad visa holders even if they spend more than 183 days a year in Spain and are therefore technically fiscal residents.

IRNR is generally 24 percent in Spain but this will be reduced to 15 percent for digital nomads and remote workers, as long as you earn below €600,000 a year.

This favourable tax rate will be available for four years, if you choose to renew your visa. 

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