In a world that is becoming ever more interconnected, the concept of an office has evolved significantly in recent years. Nowadays, professionals from various fields are opting for idyllic locations worldwide, such as the south of Tenerife, to blend their digital careers with an exceptional quality of life.
This trend has transformed the Islands into a hub for 21st-century professional nomads, who are drawn in by the favourable weather, flexibility, and tax benefits. Among these newcomers are Marta and Ange, two young individuals who discovered in Tenerife not just a residence but also the ideal backdrop to pursue their work.
The Minister of Tourism and Employment for the Government of the Canary Islands, Jessica León, disclosed that in 2022, the Islands welcomed 86,000 individuals identified as digital nomads, who collectively contributed an estimated economic impact of 167 million euros, according to statistics from the regional authorities.
To foster this working ecosystem, the Government of the Canary Islands announced a plan in April, backed by 700,000 euros acquired from European Next Generation funds. This initiative aims to establish the Canary Islands as an appealing destination for digital nomads, a type of tourism that, as León noted, is defined by “lengthy stays, increased spending power, and integration into the destination,” attributes that provide “added value” to the local economy.
The foundational element of this new reality is the Startup Law, which received approval from the Congress of Deputies in December 2022 and has been in effect since January 1, 2023. This legislation introduces a specific visa for digital nomads along with a range of tax incentives, including a reduction of corporate tax to 15% for the first four years for startups and entrepreneurs.
Furthermore, the law permits digital nomads temporarily residing in Spain, including the Canary Islands, to be taxed under the Non-Resident Income Tax (IRNR) for a finite duration. This provision exempts them from the Personal Income Tax (IRPF), which typically entails steeper rates.
A Phenomenon Rooted in the Islands
Marta Hernández, aged 28, exemplifies how this trend is reshaping life in the Islands. Originally from Ávila, she made the decision to relocate to the south of Tenerife, specifically Los Cristianos, nearly a year ago, drawn in by the opportunities the region offers for her work as a social media professional, fulfilling the role of community manager for various accounts.
“I can carry out my work from wherever I choose. Working from such locations has greatly benefited my mental health,” she shares with this publication. For her, residing in Tenerife has not only boosted her productivity but also her “personal happiness.” “I adore the Islands,” she confesses.
The lifestyle of digital nomads, like Marta, is marked by its adaptability. Distant from traditional office spaces, remote work empowers them to settle in locations where their quality of life improves “dramatically,” as she points out. Hernández depicts her daily routine as a blend of “intensive work and enjoyment of the surroundings”: “ours is not a conventional 9 to 5 job.”
While she acknowledges that rental prices in the area “are quite steep,” the content creator asserts that her financial situation enables her to manage this cost “with relative ease.” “It is essential to be in a place where tax burdens do not overwhelm you and that provides, at some stage, certain advantages,” she adds.
Tenerife not only presents a stunning landscape, but also equips digital nomads with the necessary tools to flourish, both personally and professionally. For Ange, a German software developer from Inditex who has resided in the Islands since last summer, the Archipelago has become her “favourite place in the world.”
She recounts that after an extensive journey through countries in Asia, Northern Europe, and South America, Tenerife has established itself as her home. She notes how this new reality has prompted “more and more places around the globe to create laws to encourage the influx of digital nomads.” Portugal, Malta, Estonia, and Indonesia are among the countries that, enticed by the significant arrival of these new entrepreneurs, have enacted legislation favouring tax exemptions to facilitate their arrival.
