Quick answer — company setup on a Southern European digital nomad visa. On a digital nomad visa in Portugal, Spain, Greece, Italy or Croatia, you usually become tax resident once you spend more than 183 days there. A local company can make sense if you invoice local clients or want limited liability, but it can clash with special regimes — Portugal's IFICI, Spain's Beckham Law, Greece's 50% relief, Italy's impatriate regime — or, in Croatia, with the visa itself.
Southern Europe has become the default destination for location-independent professionals who want sun, community and an EU base. Portugal, Spain, Greece, Italy and Croatia all offer digital nomad visas, and most of them also offer tax incentives for new residents. The problem is that these two systems were designed separately.
A visa decides whether you can live and work in the country. A special tax regime decides how your income is taxed. A company decides who earns the income in the first place. Choose the wrong combination — for example, a local company whose profits fall outside your special regime, or local clients that your visa doesn't allow — and you can lose most of the benefit you moved for.
This guide is not for long-settled residents with established local businesses, locally employed expats, or cross-border commuters.
Not sure this branch fits you? Compare all situations in our guide to company setup for location-independent professionals.
In all five countries, spending more than 183 days a year usually makes you tax resident, and some also look at your home or centre of interests. Once resident, you are generally taxed on worldwide income unless a special regime applies.
The incentives above apply to you as an individual. A local company is a separate taxpayer: it pays normal corporate tax, and the dividends it pays you may or may not be covered by your regime. In several countries, the regime works best when you earn income personally — as an employee or self-employed — rather than through a company.
If you still own a company in your previous country, managing it from your new home can create a permanent establishment or residence claim there. Plan the departure side — exit tax on shares, distributions and where the old company is managed — before you settle on a new structure.
Self-employed people and company directors usually join the local social security system. Within the EU, coordination rules decide which country's system applies if you still work across borders; an A1 certificate may be needed.
Ranges are indicative for a small single-founder company.
In all five countries, the answer usually depends on three questions:
The Nomad Visa + Company Guide sets out each country's visa limits, regime deadlines and company steps — get it when you check your setup with Heavnn.
It depends on the country. Portugal, Spain, Greece and Italy generally allow residents to set up companies, though visa conditions and special regimes may be affected. Croatia's nomad permit does not allow work for Croatian clients or employers, which limits what a local company can do.
Often freelancing, if your income qualifies for IFICI in Portugal or you are self-employed under Beckham-compatible conditions in Spain. A company makes more sense if you reinvest profits, need limited liability or have local clients.
Generally no. Regimes such as IFICI, Beckham, Greece's Article 5C and Italy's impatriate regime apply to individuals' income. Company profits are taxed under normal corporate tax.
Usually after more than 183 days in the country in a year, or earlier if your home or centre of interests is there.
There is no single answer. Portugal and Greece suit many freelancers through their personal regimes; Spain suits remote employees and some founders under Beckham; Italy suits highly qualified workers; Croatia suits remote workers with only foreign clients.
A nomad visa, a tax regime and a company each solve a different problem. Heavnn makes sure they work together.
Check your setup with Heavnn →
This guide is general information, not tax or legal advice. Rules are summarised as of October 2026.
