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WORKING IN SPAIN

Spain court rules against Amazon over freelance drivers

A Spanish court has ruled that over 2,000 people who used their own vehicles to deliver packages for Amazon as self-employed freelancers should have been hired by the firm as formal employees.

Spain court rules against Amazon over freelance drivers
Spain to fine Amazon. Photo: JONAS ROOSENS / BELGA / AFP

The Madrid labour court said in Thursday’s ruling that these workers were “false freelancers” who should have been tied to the US firm with work contracts.

It also ordered the online shopping giant to pay social security contributions for the 2,166 people it hired under the guise of freelancers, according to a copy of the ruling seen Friday by AFP.

The court did not say how much the measure would cost but Spanish trade union UGT, which filed the complaint against Amazon, put the price tag at “several million” euros.

The union said this is the first time a court has ruled against the company’s Amazon Flex service, which works like ride-hailing service Uber.

Drivers use an app to sign up for shifts to pick up packages at warehouses and deliver them to Amazon customers’ doors.

Amazon Flex ceased operating in Spain in 2021 just before the country passed a law requiring delivery riders to be recognised as employees instead of self-employed contractors.

READ ALSO – OFFICIAL: Delivery riders become company staff as Spain’s labour reform kicks in

UGT said it would “continue to fight so that the rights of workers who provide services on digital platforms are respected” and to avoid “situations of labour exploitation”.

Amazon had argued it only acts as an intermediary that connects retailers and distributors – a claim rejected by the court.

It said in its ruling that Amazon used an app to direct and coordinate the drivers who “lacked their own autonomous business organisation”.

Amazon said it disagreed with the court’s rationale and would appeal the ruling.

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WORKING IN SPAIN

Can you work outside of Spain on the non-lucrative visa?

The non-lucrative visa is a popular choice for non-EU citizens who want to come and live in Spain, but there’s long been confusion over whether or not you can work outside of the country or not while you’re on it.

Can you work outside of Spain on the non-lucrative visa?

The non-lucrative visa or NLV as it is often referred to, is a residency authorisation that allows non-EU foreigners to live in Spain.

As the name suggests, however, it’s non-lucrative, so it doesn’t give you the right to work here, instead you have to demonstrate that you have sufficient savings for yourself, as well as any family members you’re bringing with you. 

Many people claim that if you’re not actually working in Spain while on the visa, and if you’re work comes from abroad then it’s fine, but is it actually legal?

Online searches reveal many conflicting results with several sources saying you absolutely cannot work on the visa at all under any circumstances and others saying that you can and authorities simply turn a blind eye.

It used to be a big grey area because Spanish law didn’t specifically mention remote working. Spain’s General Immigration Regime stated that, while staying on the NLV:

  • You mustn’t work for a Spanish company
  • You mustn’t work for a Spanish employer
  • You can’t open your own business in Spain
  • Nor can you open a branch office in Spain

In terms of remote working specifically, the law did’t actually address it.

READ ALSO: Does Spain check if you’re working on the non-lucrative visa?

But, authorities seemed to suggest that you couldn’t work on it at all, under any capacity, due to their rulings and decision making.

According to Barcelona-based law firm Balcells: “During the pandemic (from 2020 onward), the vast majority of consulates started to reject applications from foreigners who clearly stated they wanted to start working remotely”.

“Or if the consulate sees that remote work is what you have been doing for the past months/years, your application may even get rejected too”.

In 2023, a Madrid court denied a Venezuelan national’s application for the non-lucrative visa because they continued to advertise their professional services on sites like LinkedIn.

These all support the fact that working, even remotely for another country is not allowed.

The amount of savings you have to prove for the non-lucrative visa in 2024 is €2,400 per month, which must come from passive income such as return on investments and rental income, rather than physically working.

READ ALSO: Non-lucrative vs digital nomad visa: Which one should you choose to move to Spain?

There is now even stronger legal evidence to support the theory that you can’t work remotely while on the NLV, with the introduction of Spain’s Digital Nomad Visa or DNV in early 2023.

The whole point of the DNV is to allow non-EU remote workers and freelancers to be able to live and work in Spain, so it would defeat the entire purpose of this visa if you were allowed to work remotely on the NLV.

The DNV in fact has many requisites to ensure the way in which remote workers can legally work here. For example, they have to have worked for the same employer for three months or more and any company they work for has to have been in existence for more than one year.

To apply for the DNV in 2024 you have to prove a monthly income of at least €2,646. While this is slightly more than the NLV, it does mean that you can continue working. 

READ ALSO: Does Spain accept savings for the digital nomad visa if earnings aren’t enough?

Many remote workers may have used the NLV option in the past, but today there is no excuse, you may as well just apply for the DNV instead.

As authorities are cracking down on NLV applications, it’s simply not worth the risk having your application denied if you plan to continuing working. If you’re found out and are not declaring your income properly too, you could end up with a hefty fine and be unable to renew your visa in the future. 

Therefore, if you want to work remotely for company outside of Spain, it’s best to forget the NLV and go straight for the DNV, which will ensure what you’re doing is truly legal.

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