Spain Tightens Tax Scrutiny on Digital Nomads: Permanent Establishment Risks for Foreign Employers

Spain Tightens Tax Scrutiny on Digital Nomads: Permanent Establishment Risks for Foreign Employers

In early 2026, Spain’s tax authority, Agencia Tributaria (Hacienda), has increased its focus on remote employees of foreign companies residing in Spain under the digital nomad visa (visado de teletrabajador internacional) for more than six months. This follows updated OECD guidance from November 2025 clarifying when a home office may constitute an establecimiento permanente (permanent establishment, PE), potentially obligating employers to pay corporate taxes in Spain.

Key Facts

• The digital nomad visa is used by thousands of professionals, allowing them to live in Spain while working remotely for foreign employers (under employment contracts) or as freelancers.
• A key risk for employees of foreign firms arises if they spend more than 50% of their working time in Spain (typically over 183 days per year for residency renewal), which could trigger a PE assessment by tax authorities.
• According to updated OECD Model Tax Convention comments (November 2025):
  • If less than 50% of work time is spent in Spain, a home office usually does not constitute a fixed place of business.
  • If more than 50%, further analysis is required: does the employer have access/control over the workspace? Is the employee conducting commercial activities (e.g., regular client meetings, contract signing, market development) in Spain?
• Hacienda has already announced heightened scrutiny in such cases (reported by elEconomista.es and MurciaEconomía in January 2026). The risk is especially high if the worker engages with Spanish clients, conducts negotiations, or generates revenue from the Spanish market.

What This Means in Practice

• Not an automatic prohibition: Pure remote work without local client-facing activity typically does not create a PE. Many experts and law firms emphasize that for most digital nomads employed by foreign companies, the risk remains low in the absence of clear local business indicators.
• The Beckham Law (special tax regime for expatriates offering a flat 24% income tax rate up to €600,000) remains available for eligible foreign company employees, provided no PE is created.
• Self-employed individuals (autónomos) generally do not qualify for Beckham and pay standard taxes, but their own companies face minimal PE risk.

Conclusions and Recommendations

Spanish authorities are not introducing new strict policies specifically targeting digital nomads—this reflects enhanced standard enforcement aligned with global OECD changes. There is no widespread shift away from employment contracts toward self-employment yet, though some companies may reassess business trips to Spain.

If you are a digital nomad or an employer:

• Assess whether your working time in Spain exceeds 50% and whether there is any client-related activity in the country.
• Consult a tax lawyer to evaluate your specific situation.
• Staying over 183 days per year is acceptable for visa renewal, but requires caution regarding PE risks.

Source: OECD updates 2025, Agencia Tributaria announcements, elEconomista.es (January 2026), and other specialized reports.