Since the startup law, better known as the ‘Nomad Visa’, was approved in January 2023, many overseas workers have opted to work remotely from Spain due to the convenience that this new law offers them.
The Nomad Visa not only makes it easier to travel to Spain, but also gives them the possibility of working from here without having to register with the Spanish Social Security system.
To do so, they will need to obtain the A-1 Certificate from their home country.
In this article we will try to answer any questions you may have.
So...what is the A-1 certificate?
The A-1 certificate is a document related to the Social Security Legislation applicable to the holder of this certificate based on the regulations of the European Union. This document is required for all workers moving to or in transit through EU and EEA countries (Iceland, Liechtenstein, Norway), Switzerland, United Kingdom and Denmark.
Where is it regulated?
Regulation 883/2004 facilitates the coordination of Social Security systems, allowing free movement of workers and contributing towards improving their standard of living and employment conditions.
What is the purpose of the A-1 certificate?
A worker who has been issued with an A-1 certificate by the competent social security body of the country where they provide services may work in another of the above-mentioned countries without having to pay contributions in that country.
The A1 certificate issued by the competent body certifies that the worker is subject to the social security legislation of the country of posting and therefore does not have to pay social security contributions in the country of destination.
*For workers from third countries; the situation and cirumstances will have to be analysed and assessed individually.
Who notifies the posting?
The company is obliged to notify in advance the Member State where the worker is registered, whenever possible, of each cross-border work activity (including those considered as professional postings) and apply for the A1 form or the social security body of that country to issue the A1 form or ‘Certificate of Applicable Legislation’.
How long can the posting be?
The initial duration of the posting in a Member State is no longer than 24 months, therefore, the duration of the A1 certificate will be a maximum of 24 months and will depend on the duration of the employment contract concluded with the worker.
What if I forsee that the posting will be longer than 24 months?
If the posting exceeds 2 years or is foreseen from the outset to last longer (maximum 5 years), the worker can:
- Switch to the social security system of the country where they are posted
- Apply for coverage to continue in your country of origin. The A1 form or its extension will be granted if the administrations of both countries (home and host) reach an agreement and the agreement suits the worker, with the exception of the United Kingdom (including Gibraltar), where postings of up to a maximum period of 24 months are permitted.
Does this certificate entitle workers to free health care?
No, the A-1 certificate does not entitle the holder to receive public health care in Spain.
However, together with the A-1 certificate, the S1 document can also be applied for, provided that the conventions or treaties cover it. This document, once registered in the Spanish Social Security system, will allow its holder to receive free health care in Spain.
*Other relevant information
The issuance of the A-1 Certificate entitles the posted worker to apply for the Special Tax Regime, better known as the Beckham Law, which will allow them to be taxed in Spain at a maximum rate of 24% up to 600,000 euros.
The granting of the Special Tax Regime will not only depend on the worker obtaining the A-1 certificate. They must also comply with a series of other requirements to qualify for this tax system.
If you are interested in moving to Spain and need our help with your A1 certificate application, we can arrange an appointment for you with one of our specialist advisors and lawyers.
For more information, please contact Pellicer & Heredia on +34 965 480 737 or email us at info@pellicerheredia.com.
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