Spain, a popular destination famed for its relaxed sun-drenched lifestyle and relatively low cost of living, so unsurprisingly, the introduction of a Digital Nomad Visa (DNV) is hotly anticipated amongst digital entrepreneurs and freelancers. The purpose of the visa is to attract high-end professionals who want to relocate to Spain, either on their own or with their family.
Benefits of the DNV
Why is it causing so much excitement? The applicant is offered the best of both worlds; the visa allows foreign workers to circumvent the 90 / 180-day rule for non-EU citizens visiting Schengen Zone countries. The DNV to reside in Spain full time and work remotely for up to 5 years, enjoying the lifestyle and perks of legal residency, yet fiscally they are treated as a non-resident. DNV holders benefit from non-domiciled tax scheme, which means they pay fewer taxes and are subject to a very low flat income tax rate of just 15%. There are also significant tax breaks for the foreign employer.
Who can apply for a DNV?
Contrary to some reports, the DNV is not a free pass for anyone to work in Spain. In order to be eligible for a Digital Nomad Visa, it is essential to fulfil the strict criteria (listed below). Further information about the DNV scheme can also be found on the Planet Nomad website.
- You have worked remotely for at least 12 months.
- Your work can be carried out remotely.
- If under contract to a company, you have worked with the company for at least three months (the company you are working for must allow remote working).
- If you are a freelancer, you should work for at least one company not located in Spain and be able to provide the details of the terms under which you can work remotely.
Now you need Professional Indemnity Insurance
Once you have completed your application process there is another important consideration that needs to be addressed. Although not as exciting as starting a new life overseas it is necessary. Professional Indemnity Insurance is not obligated by the Spanish authorities as a prerequisite for application, however this type of insurance is essential for anyone working in technology. Almost certainly clients will require Digital Nomads to have adequate insurance cover prior to entering into a working relationship.
How Professional Indemnity Insurance protects you
Mistakes can happen through no fault of your own which can expose yourself and the company you work for to serious and potentially devastating financial risks, including compensation and legal costs. Imagine if you are accused of negligence, this can be extremely damaging to your professional reputation. In simple terms, Professional Indemnity Insurance is designed to provide cover against unhappy customers who claim that you have been negligent or who are dissatisfied with the service you supplied. With this insurance in place, you don’t have to worry about the cost and stress of fighting a claim which could take its toll on your health and your career. Professional Indemnity Insurance gives you access to legal specialists who look after your interests. The good news is that it is a deductible expense and premiums are competitive, particularly when you consider the possible catastrophic costs should the worst happen. Your broker can advise on the correct policy to suit your specific requirements. Op de Beeck & Worth insurance broker in Marbella, can tailor make a policy to suit your specific requirements, so that if something does go wrong, you will be protected. There is also the added peace of mind that there is a multilingual team on hand to help you deal with any claims. What is covered by Professional Indemnity Insurance?
- Legal Defence: cover for legal expenses and providing a defence.
- Defamation: making false or damaging claims about a person or organisation.
- Protects your reputation: Specialists who will work to protect your reputation.
- Intellectual property infringements: reusing content without permission.
- Negligence: carelessness, bad advice, making mistakes (directors and staff).
- Breach of confidence: sharing sensitive or confidential data without consent.
Private health insurance
It is accepted wisdom that whether you are travelling or working overseas, it is advisable to take out private health insurance. Even if you are eligible for state healthcare provision as a digital nomad, there is also the undeniable fact that no matter where you settle in Europe, public health care is stretched to its limits. Private health insurance offers a much quicker, more convenient and cost-effective route to accessing doctors’ appointments and medical treatment whilst overseas. Should the worst happen, you will have the peace of mind that you will be taken care of by medical professionals who will respond quickly and speak your language. If you would like to find out more about Op de Beeck & Worth’s Professional Indemnity Insurance and private health insurance policies visit our website www.opdebeeck-worth.com or contact us at info@opdebeeck-worth.com or call 952 88 22 73 to request a free no-obligation consultation. For more information about the application process for Digital Nomad Visas in Spain, visit this website.
