Relocating to Spain as a UK business owner is increasingly common, particularly with the introduction of the Spanish Digital Nomad Visa (DNV). However, for directors and shareholders of UK companies, the process is far from straightforward.

One of the most important decisions you will face is whether to apply as an employee or as a self-employed individual (autónomo) — and this choice carries both tax and legal implications across two jurisdictions.

The Core Issue: Conflicting UK and Spanish Requirements

For UK company owners holding more than 25% of shares and acting as directors, there is a fundamental mismatch between Spanish and UK systems.

From a Spanish perspective, individuals in this position are often expected to:

• Register as self-employed (autónomo)
• Invoice their own company for services

This aligns with how Spain interprets control and economic activity.

However, under UK rules:

• Directors cannot invoice their own company for management services
• All remuneration must typically be processed through PAYE

This creates a difficult position: Complying with Spanish expectations can conflict with UK tax rules.

The Emerging Practical Challenge

More recently, Spanish immigration authorities (UGE) have started requesting evidence of self-employment registration in the UK as part of the DNV process.

While it is technically possible to register as self-employed in the UK to satisfy this requirement, in practice:

• The director cannot realistically use that status to invoice their own company
• The structure may exist only “on paper”
• This creates a compliance risk if not handled carefully

In other words, applicants may find themselves meeting Spanish formal requirements while being unable to operate that structure in reality under UK law.

Choosing Your Application Route

There are two main approaches when applying for the Digital Nomad Visa as a UK company owner.

Option 1: Applying as Self-Employed (Autónomo)

This route is generally more aligned with long-term residence in Spain, particularly if you expect to become a Spanish tax resident.

Advantages:

• Strong alignment with Spanish tax and social security expectations
• Reduced risk of being classified as a permanent establishment in Spain
• Typically leads to a 3-year residence permit
• Clearer long-term structure once established in Spain

Considerations:

• You may need to demonstrate a 3-month activity history (registration, invoices, bank movement)
• You will be liable for Spanish social security contributions
• Ongoing compliance (quarterly filings, accounting) is required
• Setup needs to be carefully structured to avoid conflict with UK rules

Option 2: Applying as an Employee (A1 Certificate Route)

This option is often used in the early stages, particularly if you intend to remain under UK tax residency initially.

Advantages:

• No need to build a 3-month self-employed track record
• You can continue contributing to UK National Insurance
• Faster to prepare in many cases

Considerations:

• Increased scrutiny from Spanish authorities (criteria can shift)
• Structuring issues if you are the sole director (you cannot “assign” yourself to Spain easily)
• Typically results in shorter residence periods (linked to A1 duration)
• May not be sustainable once you become a Spanish tax resident

Permanent Establishment Risk

One of the most overlooked aspects is the risk of creating a permanent establishment (PE) in Spain.

If not structured properly:

• Your UK company could be considered as operating in Spain
• Spain could seek to tax part of the company’s profits

Using a self-employed structure can help mitigate this risk by creating a clearer separation between you and the company.

Timing Is Critical

The success of a Digital Nomad Visa application is not just about eligibility — it’s about timing and sequencing.

Key factors include:

• When you relocate physically
• When you trigger Spanish tax residency
• When you apply for Beckham Law (if applicable)
• How your income is structured before and after the move

A poorly timed application can create unnecessary tax exposure or weaken the application.

A Constantly Evolving Landscape



Both Spanish immigration authorities and HMRC continue to refine their interpretation of these cases.

As a result:

• There is no “one-size-fits-all” solution
• Internal criteria can change without formal notice
• Each case must be approached strategically

Final Thoughts

For UK company owners, the Spanish Digital Nomad Visa offers a strong pathway to relocate — but it sits in a grey area between two legal systems.

The key is not just choosing a route, but designing a structure that works:

• Legally in Spain
• Compliantly in the UK
• Efficiently from a tax perspective

Need Guidance on Your Move?

If you are a UK business owner considering relocation to Spain, we can assist with:

• Choosing the right DNV application route
• Structuring your setup between Spain and the UK
• Managing tax exposure and compliance
• End-to-end visa application support

Get in touch to discuss your situation — we’ll help you plan it properly from day one.