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Regulation of international telework

This year a new telework regulation is expected to be approved in Spain and Europe. This modality of work has been adopted by many organizations, but there is still no regulation in law. Below we present the proposed law that the Government has on teleworking.

Current situation on teleworking

The situation generated by COVID-19 has brought about the generalization of the teleworking regime, to the point of becoming part of an organizational model on which many companies have decided to implement.

This organizational model, especially those that are managed only in the administrative area, has managed to keep many companies active and maintain their workers from an online modality.

Since 2002 with the European Framework Agreement on Teleworking, there is currently no legal framework in relation to teleworking in the field of public administrations. The basic regulation in this matter, does not contemplate any provision referring to telework and mentions that each institution will establish the working day of its workers, having complete autonomy to decide how to organize it.

Therefore, organizations that want to incorporate telework as one of the organizational systems must take into account the advantages and difficulties it presents. Knowing this, it will be possible to maximize the positive aspects and minimize the negative ones.


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Draft Law for the Regulation of Teleworking

In December last year, the Government approved the Startups Bill, which introduces important tax, commercial and immigration changes for startups in Spain.

For the time being, this law is expected to be approved by mid 2022. It intends to attract talent and investment with a new visa and residency authorization for international teleworkers, helping to create better ecosystems for the establishment of entrepreneurs.

The government expects to have positive effects on the territory by facilitating the revival of consumption and local economy. This new figure of residence for digital nomads will be introduced in the Law 14/2013 (Entrepreneurs Law), including 3 articles on international teleworking.

Who is an international teleworker?

A visa or residence permit for international teleworking may be obtained by foreigners who are going to carry out a labor or professional activity in Spain for non-Spanish companies, through the use of online work.

Foreigners who perform professional activities for a company located in Spain may also apply, provided that the percentage of such work does not exceed 20% of their total professional activity.

In addition, foreigners who can prove higher education studies in universities of recognized prestige or with a minimum professional experience of 3 years.


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Requirements to apply for an international teleworker visa

To apply for this visa or authorization the person must present:

  • The existence of real, continuous and previous activity of at least 1 year in the company with which the teleworker is maintained.

  • Proof that the labor or professional relationship can be performed remotely through an employment contract and/or telework agreement.

  • Existence of a previous relationship with the company of 3 months, both for labor and professional relationships.

  • Present and lack of criminal record in the country and others where the person has resided.

  • Be able to show that you have sufficient financial resources to live on and have your own health insurance.

Difference between a visa and an authorization

If the international teleworker does not intend to reside in Spain for a period exceeding one year, he/she must apply for a visa for international teleworking.  The visa will be sufficient to reside and work in Spain during its validity.

On the other hand, foreigners who intend to reside and telework in Spain for a period of more than one year must apply for a residence permit which will be valid for 3 years unless requested for a shorter period, and may be renewed for successive periods of 2 years until reaching the nationality or permanent stay.

This extension of residency may be renewed provided that you submit your application within 60 days prior to the expiration of your visa.


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Special tax regime for impatriates or Beckham Law

The Startups Law influences and substantially modifies this special regime for impatriates. Among the modifications, it includes international teleworking as one of the cases of travel reasons to which the special tax regime can be applied.

This application will allow the person to apply a fixed 24% tax rate on his or her earned income during the first 6 years and provided that the foreigner has not resided in Spain during the previous 5 years.

Another modification allows the foreigner in possession of this visa to extend his residence for more than one year, as long as the application is made within the aforementioned period.


Keep up to date with these and other news from Spain through our social networks like @TASConsultingES. If you need help to emigrate to the Spanish territory consult with one of our advisors by email or log in to TAS Consulting and see all our plans and services.


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