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WEBINAR
Residence & work
permit options for
foreign students in
Spain
AGM
ABOGADOS
www.agmabogados.com
May 5th 2022
Marc
Fernández
de la Peña
www.agmabogados.com
Lawyer at Immigration Department
Speakers
mfernandez@agmabogados.com
Meritxell
de Vilalta
Bufurull
Lawyer at Tax Department
mvilalta@agmabogados.com
Index
Content
• Foreign Students in Spain – As for April 2022
• Main work permit options for foreign students within the Spanish
immigration laws (entrepreneur Law and general Immigration Law)
• Identify your candidate professional profile (professional
experience and studies completed)
• Types of recruitment companies (large companies and SMEs;
including startups)
• Analise the job offers received (salary and job position)
• Special Tax Regime (Beckham Law).
www.agmabogados.com
Foreign students in
Spain –
As for April 2022
Spain is considered one of the preferred or attractive
destination to Study abroad within the European Union.
The number of foreign students who decide to choose
Spain as a destination to study their master’s and
University Degree has considerable increased in the past
years.
www.agmabogados.com
www.agmabogados.com
Thus, if we check the world map by nationalities, most of
the foreign students between 25-30 years old are from the
United States, China, and Latin America countries. As for
31/12/2021 there is a total of 15,184 foreign students in
Spain (27% of total)
www.agmabogados.com
During the past 4 years the Spanish Government has
been trying to potent Spain not only as a destination
to study but also to establish your residency after the
completing your studies.
In this session would try to provide you some key
information so you can have an initial overview of the
work permit options after completing your studies in
Spain.
Main resident permits in Spain
for foreign students
www.agmabogados.com
Situation when the foreign student pretends to look for a job after completing his studies in
Spain. In this session we would talk about:
1. The Highly Qualified Work Permit (art. 71 of the Entrepreneur Law).
2. Work Internship Permit (DAª 17 of the Entrepreneur Law).
3. Job seeker Permit (DAª 18 of the Entrepreneur Law).
4. “Cuenta Ajena” Work Permit (art. 62 – 70 of the Royal Decree 557/2011
which modifies the General Immigration Law 4/2000).
5. Digital Nomad Work Permit (expected to be approved the following
months).
Highly Qualified Work Permit
(art. 71 of the Entrepreneur Law)
www.agmabogados.com
Definition: It applies to professionals with an academic degree and professional
experience (3 years/5 years) who are going to occupy a technical or directive position.
Main requirements:
• Work contract.
• Salary:+41,000€ (technician) & +55,000€ (Directors)*if minor 30 years old or SME.
reduced 0.75%: 31,000€. Variable salary / wages in kind (“especie”).
• Job profile: 3 years/5 years or University Degree/Master.
• Hiring company: SME/Large Company and others.
Process: before expiration student permit. Timeline of 20 working days.
Family members: can obtain a residence permit with work authorization.
Linked to the hiring company.
Work Internship Permit
(D.A 17 of Entrepreneur Law)
www.agmabogados.com
Definition: It applies to foreigners who have obtained a Higher University degree within
the past 2 years prior to the submission of the work permit
Main requirements:
• Work vontract (art 11 ET) limited to 1 year.
• Job position linked to the studies completed.
• Salary according to the collective bargaining agreement.
Process: before expiration student permit. Timeline of 30 working days.
Family members: they do not incorporate a work permission. Only of they were as
dependents with the student status.
Linked to the hiring company.
Job seeker permit
(D.A 18 of Entrepreneur Law)
www.agmabogados.com
Definition: It applies to foreigners who have completed an official course in Spain and
intent to extend his/her stay with the purpose of looking for a job or starting a business
project. It does not allow you to work
Main requirements:
• Certificate of completion.
• Does not allow you to work.
• Limited to 1 year.
Process: 60/90 days student permit. Timeline of 20 working days.
Family members: only of they were as dependents with the student status.
Will allow you access to the Highly Qualified & Internship Work Permit.
“Cuenta Ajena” Work Permit (art.62-70 RD 557/2011
which modifies the General Immigration Law
www.agmabogados.com
Definition: It applies to foreigners who have achieved 3 continuous years in Spain under a
student status. Necessary to have a job offer with a work contract of at least 1 year.
Main requirements:
• Proof of 3 years.
• Work contract 1 year.
• Certificate of “aprovechamiento” or completion.
Process: before expiration student permit. Long processing time (more 3 months).
Family members: only of they were as dependents with the student status. They do not
incorporate a work permission.
Not linked to the hiring company.
Digital Nomad Work Permit
(expected to be approved 2022)
www.agmabogados.com
Allow the foreigner to process a resident permit to carry out an employment or
professional activity remotely in Spain for companies located outside Spanish territory.
Main requirements:
• Graduate or postgraduate university or business school.
• Accredited the activity can be carried out remotely.
• Company: existence of real, continuous and previous activity of 1 year (employment).
• Existence previous work/professional relationship of 3 months (both).
• Special tax regime: included.
• Professional activities: limited 20% to work with local companies of their professional
activity.
www.agmabogados.com
Now that we have described the main residency
options for foreign students…
• How to choose the suitable work permit option
according to your interest and job offers?
I. Identify your candidate professional profile
www.agmabogados.com
The first point to analyze is your professional profile and legal status. When we talk about
professional profile, we refer to your job experience; if you would potentially be
considered an internship, junior, senior or manager profile.
When we talk about your legal status we refer to the validity of your current student
authorization when applying the work permit authorization.
I. Identify your candidate professional profile
www.agmabogados.com
a) Senior or Manager Profile – Highly Qualified Work Permit & Cuenta Ajena
Sort of responsibility, decision making, leading a team or project.
It requires 3 years of experience or graduate from a well-known or recognized university or business school
b) Junior Profile – Work Internship Permit & Cuenta Ajena
No previous experience in the hiring position. In case of the work internship you must proof you have
completed a university degree (foreign or Spanish).
c) Internship Profile – ¿Does it suits within any resident permit?
An internship agreement can only be done if the foreigner is enrolled in a University or Business School.
Internship agreement work permit (if the studies are not the main activity of the student in Spain)
If you do external Internship + 3 months it won’t able you to convert to an internship work permit
Types of recruitment companies (large companies
and SMEs, including Startups)
www.agmabogados.com
a) Large company (more than 250 employees registered at Social Security).
a) SME Company (“PYME”)
a) Strategic sector: companies innovative or IT component; IT, Big Data, Software,
Aerospace, Robotic, Energy, Mobility, Audiovisual, startups, etc.
b) General interest: sector or activity have a high socio-economic impact on the
region, CCAA or country.
Analise the job offer received (salary and job position)
www.agmabogados.com
a) Salary ¿How much do they offer me?
Let’s imagine they are offering me a job position as a technician with a salary less than 41,000€ per year (gross salary):
- Do a have a University Degree completed?
- How old am I?
- Is the hiring company a SME or a Large Company?
• If I have a University Degree completed + younger than 30 years old → High Qualified (salary of 31,000€)
• If I have a University Degree completed BUT older than 30 years old + the hiring company is SME (strategic/general interest) → I can old go
through the High Qualified.
• BUT if I’m older than 30 years in disposal of a University Degree (2 years) BUT without work experience → Work Internship Permit
• Finally, if neither of those applies but I have 3 years of student in Spain → Cuenta Ajena
If they are offering me a Director position the minimum salary → 54,000€ per year. The same 0.75% applies to reduce the salary if SME or
minor 30 years old.
If the salary is less than 31,000€ + disposal of Diploma (2 years) → Work Internship Permit
Analise the job offer received (salary and job position)
www.agmabogados.com
b) Job position
If I do not have a University Degree + job position (I do have +3 years of experience) + SME
(strategic/general interest) → High Qualified (31.000€)
*Work experience is proved by submitting letters of experience previous companies you
worked for.
Difference
• High Qualified → Sort of responsibility, decision making, leading a team or project.
• Work Internship Permit → position related to the studies. No previous work experience
• Cuenta Ajena → the job position it’s not relevant if other requirements are fill it.
Special Tax Regime for
employees posted to Spain
www.agmabogados.com
Beckham Law
PURPOSE: To support initiatives to attract "talent" by Spanish companies.
CASE OF APPLICATION:
1. Individuals who acquire their tax residence in Spain as a result of their relocation to
Spanish territory.
2. Who exercise the option for the RFES. 6 months from the date of relocation.
3. Determines the Non-residents taxation while maintaining the status of resident
taxpayer.
4. Application: tax period of relocation plus the following 5 tax periods. Possible
renouncement.
Special Tax Regime for
employees posted to Spain
www.agmabogados.com
REQUIREMENTS
1. They have not been resident in Spain during the 10 tax periods prior to their new move to
Spanish territory.
2. That the relocation occurs as a result of any of the following circumstances:
a) Commencement of an ordinary, special or statutory employment relationship with an employer in
Spain or a posting ordered by the employer and there is a letter of posting.
The regime does not apply to the special employment relationship of professional athletes
(01/01/15).
b) That the posting takes place because of the acquisition of the condition of director of an Spanish
entity in whose capital he does not participate or with a participation of less than 25%.
3. That the taxpayer does not obtain income that would be classified as obtained through a
permanent establishment located in Spanish territory.
Special Tax Regime for
employees posted to Spain
www.agmabogados.com
TAX RATE
Application of a tax rate of 24% up to 600,000€. On the excess, 47%.
The foreseeable remuneration in each of the tax periods can exceed the amount of 600,000€
per year (monetary, in kind, fixed and variable).
A FEW REMARKS
• The Special tax regime does not extend to family members who may accompany the employee
posted to Spanish territory (CV 05/02/14).
• The taxpayer will NOT be obliged to complete the informative tax return on assets and rights
abroad, form 720 (CV 16/01/14).
• Subject to real obligation for Wealth tax purposes.
• Would not apply if working remotely from abroad for a company established in Spain.
WE ARE AGM ABOGADOS
www.agmabogados.com
With more than 35 years of experience, AGM Abogados has always had the same goal: to find the best
and fastest solution to our clients' legal problems.
This is why we brought together an international team of more than 100 professionals, spread between
Madrid, Barcelona, Sabadell and Paris, each one specialized in their specific area and, above all,
passionate about their work.
We are one of the 35 most important Spanish law firms in the country and the only one with its own
office in France.
The prestigious rankings of law firms recommend us:
FIND US
www.agmabogados.com
Barcelona
Pau Clarís, 139 | 08009
Tel: +34 93 487 11 26
Fax: +34 93 487 00 68
agm@agmabogados.com
Sabadell
C/del Sol, 217, local | 08201
Tel: +34 93 715 51 36
Fax: +34 93 725 38 45
sabadell@agmabogados.com
Madrid
Pº Castellana, 114, esc. 1, 6º 2ª | 28046
Tel: +34 91 562 13 86
Fax: +34 91 561 53 83
madrid@agmabogados.com
París
27, rue Dumont d’Urville | 75116
Tel: +33 1 44 43 00 70
Fax: +33 1 47 20 57 70
paris@agmabogados.com
WE ARE THE
TEAM WHO
STAYS BY YOUR
SIDE
www.agmabogados.com
Síguenos y comparte tu
opinión
@AGMAbogados

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Residence & work permits for foreign students in Spain

  • 1. WEBINAR Residence & work permit options for foreign students in Spain AGM ABOGADOS www.agmabogados.com May 5th 2022
  • 2. Marc Fernández de la Peña www.agmabogados.com Lawyer at Immigration Department Speakers mfernandez@agmabogados.com Meritxell de Vilalta Bufurull Lawyer at Tax Department mvilalta@agmabogados.com
  • 3. Index Content • Foreign Students in Spain – As for April 2022 • Main work permit options for foreign students within the Spanish immigration laws (entrepreneur Law and general Immigration Law) • Identify your candidate professional profile (professional experience and studies completed) • Types of recruitment companies (large companies and SMEs; including startups) • Analise the job offers received (salary and job position) • Special Tax Regime (Beckham Law). www.agmabogados.com
  • 4. Foreign students in Spain – As for April 2022 Spain is considered one of the preferred or attractive destination to Study abroad within the European Union. The number of foreign students who decide to choose Spain as a destination to study their master’s and University Degree has considerable increased in the past years. www.agmabogados.com
  • 5. www.agmabogados.com Thus, if we check the world map by nationalities, most of the foreign students between 25-30 years old are from the United States, China, and Latin America countries. As for 31/12/2021 there is a total of 15,184 foreign students in Spain (27% of total)
  • 6. www.agmabogados.com During the past 4 years the Spanish Government has been trying to potent Spain not only as a destination to study but also to establish your residency after the completing your studies. In this session would try to provide you some key information so you can have an initial overview of the work permit options after completing your studies in Spain.
  • 7. Main resident permits in Spain for foreign students www.agmabogados.com Situation when the foreign student pretends to look for a job after completing his studies in Spain. In this session we would talk about: 1. The Highly Qualified Work Permit (art. 71 of the Entrepreneur Law). 2. Work Internship Permit (DAª 17 of the Entrepreneur Law). 3. Job seeker Permit (DAª 18 of the Entrepreneur Law). 4. “Cuenta Ajena” Work Permit (art. 62 – 70 of the Royal Decree 557/2011 which modifies the General Immigration Law 4/2000). 5. Digital Nomad Work Permit (expected to be approved the following months).
  • 8. Highly Qualified Work Permit (art. 71 of the Entrepreneur Law) www.agmabogados.com Definition: It applies to professionals with an academic degree and professional experience (3 years/5 years) who are going to occupy a technical or directive position. Main requirements: • Work contract. • Salary:+41,000€ (technician) & +55,000€ (Directors)*if minor 30 years old or SME. reduced 0.75%: 31,000€. Variable salary / wages in kind (“especie”). • Job profile: 3 years/5 years or University Degree/Master. • Hiring company: SME/Large Company and others. Process: before expiration student permit. Timeline of 20 working days. Family members: can obtain a residence permit with work authorization. Linked to the hiring company.
  • 9. Work Internship Permit (D.A 17 of Entrepreneur Law) www.agmabogados.com Definition: It applies to foreigners who have obtained a Higher University degree within the past 2 years prior to the submission of the work permit Main requirements: • Work vontract (art 11 ET) limited to 1 year. • Job position linked to the studies completed. • Salary according to the collective bargaining agreement. Process: before expiration student permit. Timeline of 30 working days. Family members: they do not incorporate a work permission. Only of they were as dependents with the student status. Linked to the hiring company.
  • 10. Job seeker permit (D.A 18 of Entrepreneur Law) www.agmabogados.com Definition: It applies to foreigners who have completed an official course in Spain and intent to extend his/her stay with the purpose of looking for a job or starting a business project. It does not allow you to work Main requirements: • Certificate of completion. • Does not allow you to work. • Limited to 1 year. Process: 60/90 days student permit. Timeline of 20 working days. Family members: only of they were as dependents with the student status. Will allow you access to the Highly Qualified & Internship Work Permit.
  • 11. “Cuenta Ajena” Work Permit (art.62-70 RD 557/2011 which modifies the General Immigration Law www.agmabogados.com Definition: It applies to foreigners who have achieved 3 continuous years in Spain under a student status. Necessary to have a job offer with a work contract of at least 1 year. Main requirements: • Proof of 3 years. • Work contract 1 year. • Certificate of “aprovechamiento” or completion. Process: before expiration student permit. Long processing time (more 3 months). Family members: only of they were as dependents with the student status. They do not incorporate a work permission. Not linked to the hiring company.
  • 12. Digital Nomad Work Permit (expected to be approved 2022) www.agmabogados.com Allow the foreigner to process a resident permit to carry out an employment or professional activity remotely in Spain for companies located outside Spanish territory. Main requirements: • Graduate or postgraduate university or business school. • Accredited the activity can be carried out remotely. • Company: existence of real, continuous and previous activity of 1 year (employment). • Existence previous work/professional relationship of 3 months (both). • Special tax regime: included. • Professional activities: limited 20% to work with local companies of their professional activity.
  • 13. www.agmabogados.com Now that we have described the main residency options for foreign students… • How to choose the suitable work permit option according to your interest and job offers?
  • 14. I. Identify your candidate professional profile www.agmabogados.com The first point to analyze is your professional profile and legal status. When we talk about professional profile, we refer to your job experience; if you would potentially be considered an internship, junior, senior or manager profile. When we talk about your legal status we refer to the validity of your current student authorization when applying the work permit authorization.
  • 15. I. Identify your candidate professional profile www.agmabogados.com a) Senior or Manager Profile – Highly Qualified Work Permit & Cuenta Ajena Sort of responsibility, decision making, leading a team or project. It requires 3 years of experience or graduate from a well-known or recognized university or business school b) Junior Profile – Work Internship Permit & Cuenta Ajena No previous experience in the hiring position. In case of the work internship you must proof you have completed a university degree (foreign or Spanish). c) Internship Profile – ¿Does it suits within any resident permit? An internship agreement can only be done if the foreigner is enrolled in a University or Business School. Internship agreement work permit (if the studies are not the main activity of the student in Spain) If you do external Internship + 3 months it won’t able you to convert to an internship work permit
  • 16. Types of recruitment companies (large companies and SMEs, including Startups) www.agmabogados.com a) Large company (more than 250 employees registered at Social Security). a) SME Company (“PYME”) a) Strategic sector: companies innovative or IT component; IT, Big Data, Software, Aerospace, Robotic, Energy, Mobility, Audiovisual, startups, etc. b) General interest: sector or activity have a high socio-economic impact on the region, CCAA or country.
  • 17. Analise the job offer received (salary and job position) www.agmabogados.com a) Salary ¿How much do they offer me? Let’s imagine they are offering me a job position as a technician with a salary less than 41,000€ per year (gross salary): - Do a have a University Degree completed? - How old am I? - Is the hiring company a SME or a Large Company? • If I have a University Degree completed + younger than 30 years old → High Qualified (salary of 31,000€) • If I have a University Degree completed BUT older than 30 years old + the hiring company is SME (strategic/general interest) → I can old go through the High Qualified. • BUT if I’m older than 30 years in disposal of a University Degree (2 years) BUT without work experience → Work Internship Permit • Finally, if neither of those applies but I have 3 years of student in Spain → Cuenta Ajena If they are offering me a Director position the minimum salary → 54,000€ per year. The same 0.75% applies to reduce the salary if SME or minor 30 years old. If the salary is less than 31,000€ + disposal of Diploma (2 years) → Work Internship Permit
  • 18. Analise the job offer received (salary and job position) www.agmabogados.com b) Job position If I do not have a University Degree + job position (I do have +3 years of experience) + SME (strategic/general interest) → High Qualified (31.000€) *Work experience is proved by submitting letters of experience previous companies you worked for. Difference • High Qualified → Sort of responsibility, decision making, leading a team or project. • Work Internship Permit → position related to the studies. No previous work experience • Cuenta Ajena → the job position it’s not relevant if other requirements are fill it.
  • 19. Special Tax Regime for employees posted to Spain www.agmabogados.com Beckham Law PURPOSE: To support initiatives to attract "talent" by Spanish companies. CASE OF APPLICATION: 1. Individuals who acquire their tax residence in Spain as a result of their relocation to Spanish territory. 2. Who exercise the option for the RFES. 6 months from the date of relocation. 3. Determines the Non-residents taxation while maintaining the status of resident taxpayer. 4. Application: tax period of relocation plus the following 5 tax periods. Possible renouncement.
  • 20. Special Tax Regime for employees posted to Spain www.agmabogados.com REQUIREMENTS 1. They have not been resident in Spain during the 10 tax periods prior to their new move to Spanish territory. 2. That the relocation occurs as a result of any of the following circumstances: a) Commencement of an ordinary, special or statutory employment relationship with an employer in Spain or a posting ordered by the employer and there is a letter of posting. The regime does not apply to the special employment relationship of professional athletes (01/01/15). b) That the posting takes place because of the acquisition of the condition of director of an Spanish entity in whose capital he does not participate or with a participation of less than 25%. 3. That the taxpayer does not obtain income that would be classified as obtained through a permanent establishment located in Spanish territory.
  • 21. Special Tax Regime for employees posted to Spain www.agmabogados.com TAX RATE Application of a tax rate of 24% up to 600,000€. On the excess, 47%. The foreseeable remuneration in each of the tax periods can exceed the amount of 600,000€ per year (monetary, in kind, fixed and variable). A FEW REMARKS • The Special tax regime does not extend to family members who may accompany the employee posted to Spanish territory (CV 05/02/14). • The taxpayer will NOT be obliged to complete the informative tax return on assets and rights abroad, form 720 (CV 16/01/14). • Subject to real obligation for Wealth tax purposes. • Would not apply if working remotely from abroad for a company established in Spain.
  • 22. WE ARE AGM ABOGADOS www.agmabogados.com With more than 35 years of experience, AGM Abogados has always had the same goal: to find the best and fastest solution to our clients' legal problems. This is why we brought together an international team of more than 100 professionals, spread between Madrid, Barcelona, Sabadell and Paris, each one specialized in their specific area and, above all, passionate about their work. We are one of the 35 most important Spanish law firms in the country and the only one with its own office in France. The prestigious rankings of law firms recommend us:
  • 23. FIND US www.agmabogados.com Barcelona Pau Clarís, 139 | 08009 Tel: +34 93 487 11 26 Fax: +34 93 487 00 68 agm@agmabogados.com Sabadell C/del Sol, 217, local | 08201 Tel: +34 93 715 51 36 Fax: +34 93 725 38 45 sabadell@agmabogados.com Madrid Pº Castellana, 114, esc. 1, 6º 2ª | 28046 Tel: +34 91 562 13 86 Fax: +34 91 561 53 83 madrid@agmabogados.com París 27, rue Dumont d’Urville | 75116 Tel: +33 1 44 43 00 70 Fax: +33 1 47 20 57 70 paris@agmabogados.com
  • 24. WE ARE THE TEAM WHO STAYS BY YOUR SIDE www.agmabogados.com Síguenos y comparte tu opinión @AGMAbogados