Digital Nomad Visa: A Guide for Swiss New-Build Investors in Spain

Embrace the Mediterranean Lifestyle with Spain’s Digital Nomad Visa

For discerning Swiss investors, Spain offers an enticing blend of vibrant culture, favourable climate, and compelling investment opportunities in new-build properties. The introduction of the Digital Nomad Visa (DNV), officially known as the International Telework Visa, makes relocating to Spain more accessible than ever for remote professionals. This guide is tailored for Swiss citizens considering a move and investment in the developments we recommend, particularly focusing on the dynamic new-build market on the Costa del Sol.

The Digital Nomad Visa, implemented as part of Spain’s Startup Law (Ley 28/2022), aims to attract international talent by providing a streamlined path to residency for non-EU/EEA/Swiss citizens who can work remotely for companies outside of Spain. This visa is particularly attractive for those seeking to combine professional flexibility with the tangible asset of a modern, high-quality new-build home.

Understanding the Digital Nomad Visa for Swiss Citizens

As a non-EU/EEA country, Switzerland’s citizens are eligible to apply for Spain’s Digital Nomad Visa, offering a fantastic opportunity to establish residency while continuing their remote work. The visa provides a legal framework for a long-term stay, with an initial visa typically granted for up to one year, followed by a residence authorisation that can be extended for up to three years, and then renewed for two-year periods.

Eligibility Criteria

To qualify for the Spanish Digital Nomad Visa, Swiss applicants must meet several key requirements:

• You must not have been a tax resident in Spain during the five tax periods immediately preceding your application.
• You must work remotely for a company or clients located outside of Spain. If you are a freelancer, no more than 20% of your income can be derived from Spanish clients.
• You need to demonstrate an existing employment or client relationship with your foreign employer or clients for at least three months prior to applying.
• Your foreign company must have been operating for a minimum of one year.
• You must hold a university degree or demonstrate at least three years of professional experience in your field.
• A clean criminal record from any country you have resided in during the last five years is required. These documents must be apostilled or legalised and translated into Spanish.
• You need comprehensive private health insurance that covers all medical expenses in Spain, with no co-payments or waiting periods.
• You must obtain a NIE (Número de Identificación de Extranjero), which is your foreigner identification number in Spain.

Financial Requirements

A crucial aspect of the DNV application is proving sufficient financial means. For 2026, the main applicant must demonstrate a regular monthly income equivalent to at least 200% of Spain’s Minimum Interprofessional Salary (SMI). This typically amounts to at least €2,849 per month (or €34,188 per year) for the primary applicant. If family members are included in the application, additional funds are required: an extra 75% of the SMI for the first dependent (approximately €1,068 per month) and 25% of the SMI for each subsequent dependent (approximately €356 per month).

Application Process

Swiss citizens can apply for the Digital Nomad Visa either from their country of residence at the Spanish Consulate or from within Spain if they are already there legally.

1. Gather Documentation: Prepare all required documents, ensuring foreign documents are translated by a sworn translator and apostilled/legalised where necessary.
2. Submit Application: Applications made at a Spanish Consulate usually take 4 to 8 weeks to process. If applying from within Spain, submissions are made to the Unidad de Grandes Empresas y Colectivos Estratégicos (UGE-CE), with a faster processing time of typically 2 to 4 weeks and a ‘positive silence’ rule, meaning approval if no response is received within the timeframe.
3. Pay Fees: The official application fee from Spain is approximately €73.26 for the initial application. There is also a fee for the TIE (Tarjeta de Identidad de Extranjero – Foreigner Identity Card), which is around €16.08. Consular fees can vary.
4. Obtain TIE: Once your visa is approved, you must apply for your TIE card within one month of your arrival or approval in Spain.

Relocating to the Costa del Sol: Life and Opportunities

The Costa del Sol offers an unparalleled quality of life, with its stunning beaches, over 300 days of sunshine per year, and a vibrant expatriate community. For Swiss digital nomads, this region provides excellent infrastructure, high-speed internet, and a diverse range of leisure activities. The areas we cover boast modern amenities, international schools, and efficient transport links, making it an ideal location to settle and thrive.

Investing in New-Build Property: A Strategic Move for DNV Holders

Choosing a new-build property offers numerous advantages for DNV holders looking to establish a long-term base in Spain. These homes typically feature contemporary designs, energy efficiency, and modern amenities, often situated in planned developments with communal facilities such as pools and gyms.

Why New-Builds are Ideal for Digital Nomads

• Modern Infrastructure: New-builds are designed with modern living in mind, often including features like high-speed internet readiness, home automation, and dedicated workspaces.
• Energy Efficiency: Enjoy lower utility bills and a reduced environmental footprint thanks to modern construction standards and materials.
• Warranty Protection: New homes come with comprehensive developer warranties, providing peace of mind.
• Community Living: Many new developments offer communal facilities, fostering a sense of community and providing convenient leisure options.
• Reduced Maintenance: A new property requires less immediate maintenance compared to an older resale home, allowing you to focus on your work and lifestyle.

The New-Build Purchase Process

Purchasing an off-plan or newly completed property typically involves:

1. Reservation Contract: Secure your chosen property with a reservation fee.
2. Private Purchase Contract: Sign a contract outlining payment schedules, completion dates, and property specifications. Payments are usually structured in instalments during construction.
3. Completion at Notary: Sign the public deed of sale before a Notary Public, make the final payment, and receive the keys.
4. Registration: The property deed is then registered with the Land Registry.

Key Taxes and Costs for New-Build Property

When purchasing a new-build property in Spain, specific taxes apply:

• IVA (Value Added Tax): For new residential properties (first transmission from the developer), the IVA rate is generally 10% of the purchase price. This rate also applies to up to two garage spaces and associated annexes sold together with the home. Note that this can be reduced to 4% for certain Viviendas de Protección Oficial (VPO – social housing).
• AJD (Actos Jurídicos Documentados – Stamp Duty): This tax applies to new-build purchases in addition to IVA. The rate is determined by each autonomous community, typically ranging from 0.5% to 1.5%. We recommend confirming the current rate specifically for Andalusia with a legal professional.
• Legal and Notary Fees: Budget an additional 1-2% of the purchase price for legal fees, notary fees, and land registry charges.

Ongoing Property Ownership Costs

Once you own a property in Spain, you will incur annual costs:

• IBI (Impuesto sobre Bienes Inmuebles): This is an annual local property tax, similar to council tax, which varies depending on the municipality and the cadastral (ratable) value of your property.
• Basura (Rubbish Collection Fee): An annual local council fee for waste management.
• Community Fees: If your property is part of a community (e.g., an apartment in a development with shared amenities), you will pay monthly or quarterly community fees for maintenance of common areas.
• IRNR (Impuesto sobre la Renta de No Residentes): While you are a tax resident under the DNV, if you are not applying the Beckham Law or after its expiry, if you own property and do not rent it out, the Spanish tax authorities impute a notional income from the property, which is subject to IRNR. For non-EU/EEA residents, the general tax rate for this imputed income is 24%.

Taxation for Digital Nomad Visa Holders: The Beckham Law

One of the most significant advantages for DNV holders in Spain is the ability to opt into the special tax regime for ‘impatriates’, commonly known as the Beckham Law (Régimen Especial de Impatriados). This regime allows you to be taxed as a non-resident for personal income tax purposes, even though you are a tax resident in Spain.

Key Benefits of the Beckham Law

• Reduced Tax Rate: Under the Beckham Law, your Spanish-sourced employment income up to €600,000 is taxed at a flat rate of 24%. Income exceeding €600,000 is taxed at 47%. This is often significantly lower than the progressive rates of general Personal Income Tax (IRPF) for residents.
• Worldwide Income Exemption: Generally, only income generated in Spain is taxed. Most foreign-sourced passive income, such as dividends, interest, and capital gains on overseas assets, is typically exempt from Spanish income tax under this regime.
• No Modelo 720 Obligation: You are exempt from the obligation to declare assets held abroad (Modelo 720).
• Family Inclusion: The regime can be extended to your spouse and children under 25 (or disabled) who relocate with you.
• Duration: This beneficial tax regime can be applied for the year you establish residency in Spain plus the following five tax years, giving you a total of six years of tax advantages.

Applying for the Beckham Law

To benefit from the Beckham Law, you must meet certain criteria and apply within a strict deadline:

1. You must not have been a tax resident in Spain during the five tax periods prior to your relocation.
2. Your relocation to Spain must be a direct consequence of your work, either through an employment contract, as an administrator of a company, by undertaking an entrepreneurial activity, or by providing services as a highly qualified professional to emerging companies (which includes DNV holders).
3. You must not obtain income that can be attributed to a permanent establishment in Spain.
4. You must submit Modelo 149 to the Agencia Tributaria within six months of registering with Spanish Social Security or commencing your activity in Spain.
5. Subsequently, you will file Modelo 151 annually, instead of the standard Modelo 100 for residents.

Financing Your New-Build Property

For Swiss investors seeking to finance their new-build purchase, Spanish banks offer mortgages to non-residents. Typically, the Loan-to-Value (LTV) ratio for non-residents is between 60% and 70% of the property’s valuation. This means you should prepare to cover a deposit of 30% to 40% of the purchase price yourself. Additionally, you will need to budget for purchasing costs (taxes, notary, and legal fees), which can add another 10% to 15% of the property price. In total, you should expect to have approximately 42% to 45% of the property’s price available in upfront capital.

Selling Property as a Non-Resident: The 3% Retention

It is important to understand the ‘3% retention’ rule, which applies if you sell a Spanish property while you are a non-tax resident in Spain. In such a scenario, the buyer is legally obligated to withhold 3% of the sale price and pay it directly to the Spanish Tax Agency (Agencia Tributaria) via Modelo 211. This acts as an advance payment towards any potential capital gains tax liability you may have as a non-resident seller. The seller later files Modelo 210 to declare their actual capital gains and can claim a refund if the 3% retention was an overpayment. If you are a tax resident in Spain at the time of sale (e.g., under the DNV or after the Beckham Law period), this retention rule would not apply to you.

Your New Chapter in Spain

The combination of Spain’s Digital Nomad Visa and the attractive new-build property market offers Swiss investors a unique opportunity to embrace a fulfilling lifestyle on the Costa del Sol. From navigating the residency application to securing your dream home in the developments we recommend, understanding the specific requirements and tax implications is key. We at Life in Costa are here to guide you through every step, ensuring a smooth transition to your new life in the sun.