On Friday, Spain said that it would cut taxes for people who work remotely over the Internet. The move follows a trend set by other countries as they look to attract digital nomads who they believe will help boost local tech start-ups.
The Spanish measures will allow arriving digital nomads to use a non-resident tax status with lower rates for five years, will form part of broader legislation meant to help start-ups, including fiscal incentives for investors.
Spain thinks that the new legislation will “attract and retain international and national talents” by helping “remote workers and ‘digital nomads’ set up in Spain,” the economy ministry said in a tweet.
Spanish citizens who have been living overseas for the past five years will also be eligible to sign up for the program. The recent COVID-19 pandemic has led to the adoption of more people working from home over the Internet and is something Spain is eager to cash in on.
Other countries, including Georgia, Thailand, Iceland, and Costa Rica, have measures in place to attract remote workers, while Croatia offers one-year visas and zero taxes.