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Spain slaps fresh fine on food delivery firm Glovo

Spain's labour ministry said Tuesday it has slapped app-based food delivery company Glovo with a new fine of €57 million for violating labour laws.

Published: 25 January 2023 09:30 CET

Spain slaps fresh fine on food delivery firm Glovo

Spain slaps fresh fine on food delivery firm Glovo. Photo: JAVIER SORIANO / AFP

Glovo, which belongs to German firm Delivery Hero, was fined for not giving its riders formal labour contracts as required under a 2021 law and for giving gigs to nearly 800 irregular immigrants without work permits, a ministry spokesman said.

Under the so-called Rider Law that came into effect in August 2021, couriers who deliver food, mostly on bicycles and motorcycles, must be recognised as employees instead of being considered self-employed freelancers as before.

It is the first European legislation that explicitly regulates the status of delivery workers, who get around on bikes and motorcycles and whose numbers have exploded in recent years, despite precarious working conditions.

“No company, no matter how big or small, should remain outside the law,” Labour Minister Yolanda Díaz told reporters.

Last year the labour ministry hit Glovo with a fine of €79 million for infringements of the Rider Law.

Glovo said it would appeal the latest fine. It argues the infringements cited by the labour ministry took place before the Rider Law came into force.

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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.

READ ALSO – REVEALED: Everything you need to know about applying for Spain’s digital nomad visa

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 and digital nomads will be able to pay this instead of the more progressive rates, as long as they 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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