Two different bargains
A digital nomad visa is a deal in which the host country gets a resident who spends money locally while earning it elsewhere. That is why almost every programme on this site requires your employer or clients to be outside the country, and why the income threshold is the centre of the application. A freelance or self-employment permit is a different deal: you are allowed into the local market — local clients, local invoices — so the state looks at your business, your qualifications and sometimes whether the economy needs what you offer.
The common mistake — Applying for a nomad visa and then taking a local client "just this once". The permit you hold was granted on the basis that you would not do that, and the paper trail of a local invoice is hard to explain at renewal.
What nomad visas allow — and forbid
Employees may work only for companies based outside Spain. Self-employed professionals may also work for companies in Spain, as long as that is no more than 20% of their total professional activity (art. 74 bis, Law 14/2013).
A digital nomad works for a company, or their own company, not registered in Croatia and does not work for or provide services to employers in Croatia.
Under the digital nomad status you may not work under an employment contract or similar arrangement with a Japanese public or private organisation.
Most programmes require income from foreign employers or clients. Each country guide states the rule in its eligibility section.
Spain also asks for a track record: at least three months of employment or commercial relationship with the foreign company or companies before you apply, and a company that has been genuinely active for at least a year (art. 74 ter). A nomad visa is designed for people whose working life already exists abroad — not for building a new one locally.
What a freelance permit looks like: the German example
Germany is not one of the destinations on this site, but its residence act shows clearly what a self-employment permit involves. A general self-employment permit can be granted if there is an economic interest or a regional need, the activity is expected to have a positive effect on the economy, and its financing is secured by equity or a loan commitment; the business idea, your experience, the capital and the effect on jobs are assessed, with local chambers and authorities consulted (§ 21(1)). For the liberal professions — the freie Berufe — a permit can be granted without those economic tests, provided you hold any licence your profession requires (§ 21(5)).
Other countries have their own versions, often with a business plan, local registration as self-employed, and local tax and social security from the first invoice. The price of access to local clients is paperwork and, usually, full integration into the local tax system.
What each route asks you to prove
Nomad programmes test income. Croatia, for instance, asks for proof of a regular monthly income of at least €3,622.50 — or savings of €43,470 for a twelve-month stay and €65,205 for eighteen months — plus a clean criminal record. Japan's digital nomad status requires an individual annual income of at least ¥10 million at the time of application and is open only to nationals of countries that have both a visa-exemption arrangement and a tax treaty with Japan. Spain looks at your qualifications or three years of professional experience, and at the age and reality of the companies paying you.
Freelance and self-employment permits test the activity: whether it is viable, whether you are qualified or licensed for it, and — in the German general rule — whether the local economy has an interest in it. For many applicants that is harder to document than a salary, which is exactly why the two routes should be compared before you apply rather than after a refusal.
Side by side
| Digital nomad visa | Freelance / self-employment permit | |
|---|---|---|
| Who may pay you | Employers and clients abroad (with narrow exceptions such as Spain's 20%) | Local and foreign clients |
| What you prove | Income above a threshold from an existing foreign relationship | A viable activity: qualifications, licences, business plan or clients, depending on the country |
| Local registration | Residence registration; tax and social-security registration depend on the country | Normally registration as self-employed, with local tax and contributions |
| Duration | Often capped or tied to the foreign relationship | Renewable while the business continues |
| Long-term residence | Depends on the programme — some never count | Usually counts as ordinary residence, subject to national rules |
For how residence years count in practice, see From nomad visa to permanent residence.
Four quick cases
- A designer with clients across Europe and one client in Madrid. On Spain's teleworking permit, a self-employed professional may keep the Spanish client as long as Spanish work stays within 20% of the total activity. More than that, and the nomad route no longer fits.
- An employee of a U.S. company who wants to live in Split. Croatia's definition fits exactly: work for a company not registered in Croatia, no services to Croatian employers — within the 18-month limit.
- A consultant who wants German clients. Germany's self-employment rules apply; if the activity is one of the liberal professions, § 21(5) of the Residence Act allows a permit without the economic-need tests, provided any required professional licence is in place.
- A developer spending a winter in Tokyo. The digital nomad status allows six months without extension, and no work under contracts with Japanese organisations. Anything longer, or any Japanese client relationship, needs a different status of residence.
How to choose
- All your income comes from abroad and will stay that way: a nomad visa is the simpler route, and it is what the programmes on this site were designed for.
- You want local clients now or soon: look at the destination's self-employment permit first. A nomad visa that forbids local work cannot be stretched to cover it.
- You want to settle: compare how each permit counts towards permanent residence before choosing; the nomad route can be a detour.
- You are an employee of a foreign company: a nomad visa usually fits best; a local self-employment permit would not match your actual work.
Checklist
Map your payers
List every employer and client and where each is registered.
Read the local-work rule
Find the exact wording on local clients in the country guide and the official source.
Price the freelance route
Registration, local tax and social security, and any professional licence.
Think about year three
Renewals, a possible switch and permanent residence all depend on the permit you start with.
Related guides: Remote-work contracts, What counts as proof of income, From nomad visa to permanent residence, U.S. taxes.