Comparing Self-Support Residency and Digital Nomad Visa: Advantages, Disadvantages, and Smart Solutions

Part One: A Deeper Understanding of Self-Support Residency

What is Self-Support Residency?

It is a residence permit that allows you to live in a European country without a work permit, assuming you are financially independent enough not to need a job.

This type of residency is usually offered to retirees, wealthy individuals, or those with high passive income.

However, in reality, self-support residency has serious problems:

1. Renewal is harder than initial approval.
2. During renewal, you must prove you have had no economic activity.
3. Many immigration officers find excuses to reject renewals because income documents don’t perfectly match “pure passive income.”
4. Full work prohibition:
5. Even if you work remotely from home for a foreign client, it counts as a violation of residency conditions.
6. Issuing invoices or maintaining a professional website can lead to rejection.
7. Tax burden and banking oversight:
8. Some countries expect you to become a tax resident with your residency.
9. If you don’t pay taxes, you might get stuck between two countries: your home country considers you left, while the host country considers you a tax evader.
10. High legal uncertainty:
11. In countries like Austria, Spain, or France, renewal decisions for self-support residency can be subjective.
12. Even with substantial capital, if the immigration officer doubts your case, you may be rejected.
13. Unsuitable for the digital generation and freelancers:
14. If you are a freelancer, even with high income, you are not eligible because your income is considered “active.”

How Does the Digital Nomad Visa Work?

The Digital Nomad visa is a modern, clear, and legal response to today’s lifestyle.

Definition:

These visas allow you to work remotely for a company or client abroad and live in another country (Greece or Spain) without requiring citizenship or heavy investment.

Outstanding Features of the Digital Nomad Visa:

1. Legal permission for economic activity:
2. It is fully legal and clear that you can have active work income, provided your clients are outside the host country.
3. No need for concealment, contract restructuring, or company registration.
4. Transparent and logical renewal structure:
5. The sole renewal criterion is stable foreign income + insurance + fixed residence.
6. Unlike self-support, where officers may scrutinize how you spend money, digital nomad status requires only proof of income.
7. Tax optimization opportunities:
8. Greece:
9. If you stay less than 183 days per year → not a tax resident → no tax
10. If you stay more than 183 days with special conditions → 50% tax discount for up to 7 years
11. Spain:
12. Tax residency is mandatory, but under the “Beckham Law” → fixed 24% tax on work income

In both countries, you can choose how to structure your residency and taxes — something impossible with self-support residency.

1. Higher social and legal acceptance:
2. Immigration authorities in Greece and Spain accept this visa as a legal, forward-looking model compatible with the digital economy.
3. With the digital nomad visa, you enter as a productive and useful individual — not just a passive consumer like with self-support.
4. Predictable path to permanent residency and citizenship:

Final Comparison: Digital Nomad Visa vs. Self-Support Residency

Professional Decision-Making Conclusion

If you are:

1. A freelancer, project manager, or remote employee
2. Have stable and international income
3. Want to avoid opaque taxes or risky renewals
4. Seek residency with a path to permanent residence and citizenship

The Digital Nomad Visa in Spain or Greece is the smart, legal, and safe choice.