First Ruling by the High Court of Justice of Madrid on the Digital Nomad Residence Permit sets a Key Precedent

Giambrone & Partners undertook a case relating to the digital nomad residence permit for international remote workers. Coral Novalvos, an associate in the Barcelona office, has secured one of the first rulings by the High Court of Justice of Madrid that defines the interpretation of the Entrepreneurs' Law and its impact on professionals working remotely from Spain. The decision is a milestone in the understanding of

This decision marks a milestone in the interpretation of the Entrepreneurs' Law and its impact on professionals working remotely from Spain.

The Case: An Online Maths Teacher Operating Through a UK-Based Business

The client, an online mathematics teacher, conducted lessons via a platform that paid him directly. He operated through his own UK-registered company, which bore his name. Furthermore, he was registered as a self-employed worker in the UK and held an A1 certificate confirming his social security coverage in Spain as a freelancer.

However, his company’s legal structure allowed him to be both the owner and an employee. While this hybrid model is legal and widely accepted in the UK, Spanish administrative authorities raised obstacles in recognising his self-employed status.

Application Process and Denials

The client submitted his digital nomad residence permit application, providing all necessary documentation and clearly explaining his circumstances. However, the Spanish authorities denied the application, arguing that his status as a self-employed worker had not been sufficiently demonstrated.

In response, Giambrone & Partners filed an administrative appeal, arguing that the A1 certificate issued by the UK’s Social Security authorities was, by itself, sufficient proof of his status. Additionally, the following evidence was submitted:

• Previous tax returns.
• His UK social security number as a self-employed worker.
• Invoices generated from his professional activity.

Despite this evidence, the administration reiterated its refusal, stating that no official documents had been provided to confirm his self-employed status in the UK.

Appeal Before the High Court of Justice of Madrid

Given the lack of justification in the administrative decision, a contentious administrative appeal was lodged, arguing that:

• rejection failed to provide a clear explanation as to why the documents submitted were deemed insufficient.
• It did not clarify why the A1 certificate, issued by the UK’s Social Security authorities, was not considered an official document.
• The law does not explicitly require that self-employed status be proven exclusively with official documents from the country of origin.

The Ruling: A New Interpretation of the Digital Nomad Visa

The High Court of Justice of Madrid did not rule on whether the applicant was self-employed or on the validity of the A1 certificate. Instead, the ruling was based only on the fact that the applicant was both the employer and the employee within his own company. The court concluded that the ruling therefore did not meet the requirements set out in Article 74 ter, (section c), of the Entrepreneurs' Law (LAEI).

Conclusion

The importance of this judgement with regard to the relatively recent innovation of the Digital Nomad visa, is that it further defines the law and the ruling establishes a precedent that may shape future digital nomad visa applications in Spain.

According to the court’s interpretation, an applicant is not eligible if they are employed by their own company, despite the fact they meet the financial and all other legal requirements.

Giambrone & Partners lawyers believe that had an appeal before the Supreme Court of Cassation been undertaken it would have had a strong chance of reversing the ruling. Particularly as there is no case law in this respect. Our client elected not to pursue any further legal action which Giambrone & Partners fully respects. 

The judicial decision provides guidance for future applicants and highlights the importance of specialised legal advice in immigration law that facilitates international mobility. Giambrone & Partners has extensive expertise in respect of the rights of digital nomads and can assist our client in clarifying the applicable regulations in Spain.