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Non-Lucrative Residency or Digital Nomad Residency? A Complete Comparison

Both of these Spanish residency routes are based on proving financial resources, but they differ significantly in whether you can work, the minimum income required and the tax regime. In this article we provide a full comparison table to help you determine which route best suits your situation.

Complete Comparison Table

FeatureNon-Lucrative ResidencyDigital Nomad Residency
Can I work?No, any kind of work is prohibitedYes, but only for an employer/clients outside Spain (max. 20% of income from Spanish sources)
Minimum monthly income (main applicant)Approx. €2,400 (400% of IPREM)Approx. €1,200 (200% of IPREM)
Accepted income sourceSavings, pension, rental income, investments — no employment activityIncome from remote employment or freelance work for a foreign employer/clients
Tax regimeStandard progressive personal income tax rates (IRPF)Possible access to a special regime (similar to the Beckham Law), a flat rate of around 24% up to a €600,000 cap
Prior work or academic history requiredNoYes, at least three years of related experience or a university degree + a track record with the current employer/client
Suited toRetirees, people with passive income, those with sufficient savings or investmentsDevelopers, designers, consultants and freelancers who work remotely
Counts toward the path to nationalityYes, counted as part of the years of legal residencyYes, counted as part of the years of legal residency
A Common Mistake: Working under Non-Lucrative Residency

Some people believe they can work informally and on a limited basis for foreign clients while holding non-lucrative residency. This breaches the conditions of the permit and can lead to its revocation. If you intend to work remotely, apply for digital nomad residency from the outset.

Who Is Each Route Better Suited To?

  • Non-lucrative residency: suited to people who have no intention of working and have sufficient financial resources (savings, pension, rental income).
  • Digital nomad residency: suited to people who want to continue their work activity, but from Spain and for an employer or clients outside the country.
A Note on Family

Under both routes, a spouse and dependent children can join through family reunification, provided additional financial resources proportionate to the number of members are proven.

Frequently Asked Questions

Which route is cheaper?

In terms of the minimum monthly income, the digital nomad visa (around €1,200) has a lower figure than non-lucrative residency (around €2,400), but it is only available to people with remote work activity.

Can I switch between the two routes?

Yes, in some cases someone who entered under non-lucrative residency may later become eligible for the digital nomad visa, or vice versa. Each switch requires a separate application.

Which route is better for Spanish nationality?

There is no difference in how years of residency count toward nationality; years of legal, continuous residence under either permit are counted equally.

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