In recent months, US W-2 employees applying for Spain’s Digital Nomad Visa (DNV) have been confronted with increasing uncertainty regarding the acceptance of the US Certificate of Coverage (CoC) under the US–Spain Social Security Agreement.
Online forums and informal sources have fuelled concerns suggesting that Spanish authorities are no longer accepting these certificates. In practice, however, the situation is more nuanced. The legal framework remains unchanged, but administrative scrutiny has clearly intensified.
Understanding what has actually changed — and what has not — is essential for structuring a compliant application.
The legal framework: no change to the applicable law
Spain’s Digital Nomad Visa continues to be governed by the current international mobility regime, which allows employees of foreign companies to reside in Spain while working remotely, provided social security coverage is properly arranged.
Crucially, the law itself has not changed. The US–Spain Social Security Agreement remains in force, and Certificates of Coverage issued by US authorities are still legally valid for Digital Nomad Visa applications.
What has changed is not the legislation, but rather how the UGE interprets and applies it in the context of modern remote work arrangements.
Administrative interpretation: stricter scrutiny by the UGE
The Unidad de Grandes Empresas y Colectivos Estratégicos (UGE) has not stopped accepting US Certificates of Coverage. However, recent applications show a clear increase in requests for supplementary documentation, particularly for W-2 employees.
This shift has led to confusion, as isolated requests are often perceived as policy changes. In reality, the UGE is exercising its discretionary powers more strictly in cases where the factual situation does not clearly align with the traditional assumptions underlying the social security agreement.
The core issue: posted workers versus voluntary remote work
The US–Spain Social Security Agreement dates back to 1986, a period in which global remote work did not exist in its current form. As a result, the agreement primarily regulates temporary postings, where an employer assigns an employee to work abroad for business purposes.
It does not expressly contemplate scenarios in which:
- an employee independently chooses to relocate abroad, and
- continues working remotely for the same employer for personal reasons.
This distinction has become central in UGE assessments. Increasingly, the administration is looking for evidence that the stay in Spain can reasonably be characterised as a temporary assignment initiated or approved by the employer, rather than a purely personal relocation.
Why application framing matters for US W-2 employees
For W-2 employees relying on a Certificate of Coverage, how the employment relationship is framed has become decisive.
In practice, the UGE assesses whether:
- the employment relationship remains clearly anchored in the United States, and
- the stay in Spain can be interpreted as a temporary work arrangement within the scope of the bilateral agreement.
Applications that fail to reflect this structure — even if the Certificate of Coverage is formally valid — are more likely to trigger additional scrutiny and documentary requests.
Employer concerns: permanent establishment and tax exposure
One of the main practical obstacles is employer reluctance.
Many US companies are understandably cautious about stating that they are “sending” an employee to Spain, due to concerns about creating a permanent establishment and triggering Spanish corporate tax obligations.
While these concerns are legitimate, experience shows that they are often overestimated. With appropriate planning and carefully drafted documentation, the risks can usually be assessed and managed. At this stage, coordination between immigration and tax advice is essential.
Why requests for additional documentation are increasing
It is important to understand the institutional role of the UGE:
- The UGE is not tasked with flexibility or advocacy.
- Its function is to ensure that each approved application strictly complies with the law as interpreted at that time.
When legal texts are broad or outdated, administrative scrutiny tends to increase, not decrease. This is precisely what is currently occurring with Certificates of Coverage in Digital Nomad Visa applications involving US employees.
Practical guidance for US W-2 applicants
Given the current administrative approach, timing and preparation are critical.
Seek advice before requesting the Certificate of Coverage
If a Certificate of Coverage is requested incorrectly or framed in a way that does not align with current UGE criteria, correcting the situation later can be extremely difficult. The structure of the request should be assessed before engaging with US authorities or the employer.
Consider alternative compliance routes if necessary
Where presenting the arrangement as a temporary assignment is not feasible due to internal employer policies, alternative options may need to be evaluated:
- Self-employed route (autónomo), which requires prior registration and Spanish social security contributions, subject to specific timing requirements.
- Employer registration with Spanish Social Security, allowing the employee to remain on a W-2 contract while ensuring compliance in Spain.
Each option carries different legal and tax implications and must be analysed on a case-by-case basis.
Conclusion
The US Certificate of Coverage remains a valid mechanism for W-2 employees applying for Spain’s Digital Nomad Visa. However, it is no longer a straightforward or “plug-and-play” solution.
Current practice shows that success depends on:
- correct legal framing from the outset,
- consistency between immigration and tax strategy, and
- early, informed decision-making.
As with most immigration procedures, prevention is far more effective than correction once an application is under scrutiny.
Professional legal guidance
Digital Nomad Visa and residence applications are assessed on a case-by-case basis, where administrative practice and documentary consistency often matter as much as the legal requirements themselves. Obtaining specialised legal advice at an early stage can help identify potential risks, align the application with current criteria and avoid unnecessary delays or refusals. For personalised assistance, you may contact us at info@nomadimmigrationlawyers.com or call (+34) 660 60 91 92.
