Spanish Tax for Remote Workers: Working in Spain for a Foreign Company

Working remotely from Spain for a company in another country can create Spanish tax obligations even if your employer has no office in Spain and your salary continues to be paid into a foreign bank account.

The basic tax principle is that where you physically perform the work matters.

At the same time, you also need to determine whether you are Spanish tax resident, whether a double-tax treaty modifies Spain’s taxing rights, and which country’s Social Security system applies.

For the general tax-residence rules, see our Spanish Tax Residence Guide.

Does Working Remotely From Spain Create Spanish Tax?

Potentially, yes.

If you physically perform your employment duties from Spain, the salary attributable to that work can be connected with Spain for tax purposes.

This can be true even if:

• your employer is based abroad;
• your employment contract was signed abroad;
• your salary is paid by a foreign payroll;
• your salary goes into a foreign bank account; or
• your employer has no Spanish office.

The First Question: Are You Spanish Tax Resident?

If you become Spanish tax resident, Spain generally taxes your worldwide income under IRPF, subject to applicable double-tax treaties and special regimes.

Spanish domestic residence tests include, broadly:

• spending more than 183 days in Spain during the calendar year;
• having the main centre or base of your economic interests in Spain; and
• a rebuttable family presumption in certain circumstances.

If another country also treats you as tax resident, a double-tax treaty may contain tie-breaker rules.

See our Double Taxation Agreements in Spain guide.

Does the 183-Day Rule Decide Everything?

No.

The 183-day test is important, but it is not the only Spanish tax-residence test.

A person can potentially become Spanish tax resident through the centre-of-economic-interests rule even where the day count is disputed.

And where two countries claim residence, treaty rules may also need to be applied.

Where Is Remote Employment Income Earned?

Tax treaties commonly treat employment income as connected to the country where the employment is physically exercised.

If you sit in a home office in Spain and perform your employment duties from there, Spain can therefore have taxing rights over the salary attributable to those Spanish workdays.

This remains true even though the economic employer or payroll may be located abroad.

Example: Foreign Company, Full-Time Remote Work From Spain

Suppose you move to Spain and work full-time from your home for a company located in another country.

Your salary continues to be paid abroad.

If you become Spanish tax resident, Spain will normally consider your employment income within Spanish IRPF.

The applicable treaty must then be checked to determine whether the employer’s country also has taxing rights and how double taxation is eliminated.

What if You Remain Tax Resident Abroad?

Even if you remain treaty-resident in another country, salary attributable to employment physically exercised in Spain can potentially be taxable in Spain.

However, many treaties contain a short-term employment exception.

The Treaty 183-Day Employment Exception

Many Spanish double-tax treaties contain an employment rule under which salary for work physically performed in Spain remains taxable only in the employee’s residence country if several conditions are satisfied.

A typical treaty requires all three of the following:

1. the employee does not spend more than the treaty’s specified 183-day period in Spain;
2. the remuneration is paid by, or on behalf of, an employer that is not resident in Spain; and
3. the salary cost is not borne by a Spanish permanent establishment or fixed base of the employer.

Is the Treaty 183-Day Rule the Same as the Spanish Tax-Residence Rule?

No.

They are different rules serving different purposes.

What Counts as a Workday in Spain?

For employment-income allocation, the location where the employee actually performs the work is important.

A day spent working from:

• your Spanish home;
• a Spanish coworking space;
• a hotel in Spain;
• a Spanish client site; or
• another location in Spain

can be relevant as a Spanish workday.

What if You Work Partly in Spain and Partly Abroad?

Your salary may need to be apportioned between work performed in different countries.

That can require keeping a detailed record of:

• working days;
• travel days;
• holiday days;
• sick leave;
• business trips; and
• where each day’s employment duties were physically performed.

Does the Bank Account Matter?

No.

Salary paid into a foreign account does not cease to be taxable in Spain merely because the money stays outside Spain.

Spain does not generally use a remittance-basis system for ordinary IRPF taxpayers.

Does the Employer Need to Be Spanish?

No.

The employer can be established entirely outside Spain and the employee can still have Spanish tax obligations.

The foreign employer may also acquire Spanish payroll, Social Security or corporate-tax obligations depending on the facts.

Can a Foreign Employer Have Spanish Payroll Obligations?

Potentially.

If an employee becomes subject to Spanish employment-tax withholding rules, the foreign employer may need to examine whether it has Spanish withholding obligations.

The result depends on matters such as:

• the employee’s tax status;
• whether the employer is established in Spain;
• whether the employer has a Spanish permanent establishment;
• the applicable tax regime; and
• the legal employment structure.

What if the Foreign Employer Does Not Withhold Spanish Tax?

The absence of Spanish withholding does not necessarily mean no Spanish tax is due.

A remote worker can receive salary without Spanish withholding and later owe IRPF through the annual tax return.

This can create a significant cash-flow issue.

Can Modelo 147 Help When Moving to Spain?

AEAT provides Modelo 147 for certain employees moving to Spain.

Its purpose is to communicate the move and obtain an AEAT document so that a payer resident in Spain, or operating through a Spanish permanent establishment, can anticipate the effects of the change of tax residence in the withholding system.

It is therefore not a universal remote-worker registration form.

Remote Workers and the Beckham Law

Spain’s special tax regime for people moving to Spain for work is contained in Article 93 of the Personal Income Tax Law.

It is often called the Beckham Law.

Since reforms effective from 2023, the regime can include certain people who move to Spain to work remotely for a foreign employer.

What Does the Beckham Regime Do?

A qualifying person becomes Spanish tax resident but can elect to be taxed under a special system based substantially on the Non-Resident Income Tax rules, with important modifications.

The regime generally applies for:

provided the statutory conditions continue to be met.

Does Every Remote Worker Qualify?

No.

The Article 93 regime has detailed eligibility conditions.

Among other requirements, the taxpayer generally must not have been Spanish tax resident during the five tax periods preceding the move.

The reason for the move and the employment or professional relationship must also fall within the categories allowed by law.

Can a Digital Nomad Visa Holder Use the Beckham Regime?

Potentially.

The immigration route and tax regime are separate, but reforms to Article 93 were designed in part to include qualifying remote workers and internationally mobile professionals.

Holding a digital nomad visa does not automatically grant the tax regime.

The tax conditions must be tested separately.

How Do You Elect the Special Tax Regime?

The election is communicated to AEAT using:

The annual tax return under the special regime is filed using:

Strict deadlines apply to the election, so eligibility should ideally be checked before or soon after starting work in Spain.

Is Beckham Law Always Better?

No.

The regime can be attractive for some high-income employees, but it is not automatically advantageous.

The comparison can depend on:

• salary level;
• foreign investment income;
• capital gains;
• family circumstances;
• deductions available under ordinary IRPF;
• wealth-tax exposure;
• foreign property;
• future compensation; and
• how long you intend to remain in Spain.

Remote Work and Social Security

Income tax and Social Security are separate.

You can be Spanish tax resident while remaining insured under another country’s Social Security system in an appropriate cross-border situation.

You can also be taxable partly in one country while Social Security contributions are due entirely in another.

EU and EEA Cross-Border Telework

Within the European coordination system, the basic Social Security rules determine which single country’s legislation applies to a worker.

Where a person normally works in two or more countries, the amount of work performed in the country of residence can be important.

The 25% Social Security Rule

Under the ordinary EU coordination rules for someone normally employed in two or more Member States, performing a substantial part of the activity in the country of residence can result in that country’s Social Security legislation applying.

The standard threshold commonly used for a substantial part is at least 25% of working time or remuneration, depending on the applicable rule.

The Cross-Border Telework Framework Agreement

Several European countries have joined a special Framework Agreement for habitual cross-border telework.

Where all conditions are satisfied and both relevant countries are participating states, the employee can request to remain under the Social Security system of the employer’s country even when teleworking from the country of residence for:

This is an exception to the ordinary multi-state working rules.

Is the 50% Rule Automatic?

No.

The special Framework Agreement generally requires an application.

It also has eligibility conditions.

It does not apply to every internationally mobile worker.

Who Is Excluded From the Telework Framework Agreement?

The Framework Agreement does not cover every working arrangement.

Among other limitations, it generally does not apply where the person:

• habitually performs activities other than cross-border telework in the state of residence;
• habitually works in a third state as well;
• is self-employed rather than employed; or
• does not satisfy the participating-state requirements.

Example: Employee Lives in Spain and Works 40% From Home

Suppose an employee lives in Spain but works for an employer established in another participating country.

The employee performs:

• 40% of working time remotely from Spain; and
• 60% in the employer’s country.

Under the ordinary rules, working a substantial part from Spain could point toward Spanish Social Security.

But where the Framework Agreement applies and an appropriate request is approved, the employer-country Social Security system may continue to apply because the Spanish telework share is below 50%.

Example: Employee Works 100% Remotely From Spain

A person who permanently performs all work from Spain does not generally fit within the special less-than-50% cross-border telework exception.

Spanish Social Security obligations may therefore arise, depending on the applicable international rules.

What Is an A1 Certificate?

An A1 certificate confirms which country’s Social Security legislation applies under the European coordination rules.

It is important in cross-border work because it provides evidence that contributions are correctly being paid under one country’s system.

An A1 does not determine income-tax residence.

A1 vs Tax Residence Certificate

What About Remote Work Outside the EU or EEA?

Where the employer is based outside the European coordination framework, Spain may have a bilateral Social Security agreement with the country concerned.

If there is no applicable agreement, Spanish domestic Social Security rules can become particularly important.

The tax treaty and Social Security agreement must be analysed separately.

Remote Employees vs Freelancers

The tax analysis differs significantly between:

• employees working remotely for an employer; and
• self-employed freelancers providing services to clients.

A freelancer living and working from Spain may need to register as autónomo and deal with:

• Spanish Social Security;
• IRPF;
• VAT or IVA;
• Modelo 036;
• periodic tax returns; and
• other business obligations.

Can a Freelancer Simply Invoice Through a Foreign Company?

The existence of a foreign company does not automatically prevent Spanish tax or Social Security obligations.

If the individual actually lives and performs the business activity from Spain, questions can arise about:

• Spanish personal taxation;
• self-employment registration;
• corporate residence;
• permanent establishment;
• management and control; and
• transfer pricing.

Can Remote Work Create a Permanent Establishment for the Employer?

Potentially.

A foreign company does not automatically have a Spanish permanent establishment merely because one employee works from home here.

But the risk can increase depending on factors such as:

• whether the home office is effectively at the company’s disposal;
• whether the arrangement is permanent;
• whether the employee performs core business functions;
• whether the employee negotiates or concludes contracts;
• whether clients are regularly dealt with from Spain; and
• the employer’s overall business presence.

Does a Digital Nomad Visa Decide Tax Residence?

No.

A digital nomad visa or residence authorisation is an immigration status.

Spanish tax residence is determined separately under tax law.

Someone can therefore hold an immigration authorisation and still need a separate tax-residence analysis.

Does a CUE Decide Tax Residence for an EU Remote Worker?

No.

CUE registration documents EU residence status.

It does not itself determine Spanish tax residence.

Does Padrón Registration Make You Tax Resident?

No.

Being registered on the padrón is evidence of where you live, but it does not replace the statutory tax-residence tests.

Remote Work and Modelo 720

If remote work makes you Spanish tax resident, foreign assets may become relevant to Modelo 720.

This can include foreign:

• bank accounts;
• investment accounts;
• shares;
• funds; and
• property.

See our Modelo 720 Guide.

Remote Work and Wealth Tax

Becoming an ordinary Spanish tax resident can also bring worldwide wealth into the Spanish Wealth Tax analysis.

Special Article 93 taxpayers can have a different Wealth Tax position, so anyone considering the inbound-expatriate regime should analyse income tax and wealth tax together.

See our Spanish Wealth Tax Guide.

Remote Work and Foreign Investment Income

Ordinary Spanish tax residents generally declare worldwide investment income, including foreign:

• interest;
• dividends;
• capital gains;
• rental income; and
• other investment returns.

This can make the overall tax result very different from simply comparing salary tax rates.

Can You Stay on Foreign Payroll?

Potentially, but this does not settle the Spanish tax question.

Foreign payroll may continue for contractual reasons, but the employer and employee still need to determine:

• Spanish withholding obligations;
• Social Security affiliation;
• employment-law requirements;
• tax treaty treatment; and
• corporate permanent-establishment exposure.

Can You Work From Spain for a Few Weeks Without Tax Problems?

A short period of remote work does not automatically make someone Spanish tax resident.

However, the salary attributable to Spanish workdays can still need treaty analysis.

In many ordinary short-term cases, the treaty employment exception prevents Spanish taxation if all relevant conditions are met.

What Records Should a Remote Worker Keep?

Keep evidence of:

• days physically present in Spain;
• days worked in Spain;
• days worked abroad;
• employment contract;
• employer location;
• pay statements;
• foreign tax withheld;
• A1 certificate where relevant;
• Social Security correspondence;
• tax residence certificates;
• travel records; and
• remote-work agreements.

Common Remote-Worker Tax Mistakes

“My employer is abroad, so Spain cannot tax my salary.”

Incorrect. Where the work is physically performed matters.

“I am in Spain fewer than 183 days, so Spain can never tax my work.”

Incorrect. The treaty employment rule has additional conditions.

“The tax 183-day rule and employment 183-day rule are the same.”

No. They are different legal tests.

“My foreign payroll proves I am taxed abroad.”

No. Payroll location does not determine final taxing rights.

“My digital nomad visa automatically gives me the Beckham Law.”

No. The Article 93 conditions and election process are separate.

“A1 means I am not tax resident in Spain.”

No. A1 determines Social Security legislation, not tax residence.

“If I work less than 50% from Spain, foreign Social Security automatically continues.”

No. The special cross-border telework framework has conditions and normally requires an application.

“Remote work cannot create obligations for my employer.”

Incorrect. Payroll, Social Security and permanent-establishment issues can arise.

“Salary paid abroad is not taxable until I transfer it to Spain.”

No. Ordinary Spanish residents are not generally taxed on a remittance basis.

Remote Worker Tax Checklist

Spanish Tax for Remote Workers: The Short Version

Working remotely for a foreign employer does not keep you outside the Spanish tax system simply because the company and payroll are abroad.

If you become Spanish tax resident, Spain generally taxes your worldwide income unless a special regime or treaty rule changes the result.

Even if you remain tax resident elsewhere, employment physically exercised in Spain can give Spain taxing rights unless the relevant treaty’s short-term employment exemption applies.

Social Security must be analysed separately. Within Europe, ordinary multi-state working rules and the special cross-border telework Framework Agreement can determine whether Spanish or foreign Social Security applies.

Some qualifying workers moving to Spain may also elect the special Article 93 inbound-expatriate regime.

Where to Go Next

• Spanish Tax Residence Guide
• Double Taxation Agreements in Spain
• Modelo 720: Foreign Assets Reporting in Spain
• Spanish Wealth Tax for Foreign Residents
• Digital Administration in Spain