On November 3th, 2022, the green light was given to the approval of the new law on Promotion of the Emerging Business Ecosystem, or better known as the Start-Ups Law, which is expected to enter into force, by the government, on January 1, 2023.
It’s established as the definition of “Start-up” those new created companies with less than 5 years of existence or seven in the case of biotech companies or from the industrial or energetic field.
What does it offer?
The aim of this law is to streamline the administrative procedures required to incorporate companies, among which:
Free of charge, in some cases, of Notary and Registrar formalities provided that the company is created telematically and within 6 hours.
Remove the requirement to have a Foreigners’ identity Number (NIE) for non-residents in Spain who wish to invest in an emerging company.
Reduce to one euro the social share necessary to
In addition, the new law also offers a series of tax benefits, among which we highlight the following:
Reduction of corporate tax from the current 25% to 15% during the first 4 years, provided that the taxable base is positive.
A rebate on the self-employed contribution will be granted for three years to those people who start their project while continuing to work for third parties.
Raise the tax exemption for stock options from the current €12,000 to €50,000.
Increase the maximum base of the deduction for investment in new or recently created companies. With the new law, the first 100,000 euros will be exempt from taxation (as opposed to the current 60,000 euros).
The deadline for investing in start-ups has been increased from 5 to 7 years.
Business Angels", understood as investors with sufficient economic solvency who invest in start-ups in their founding partner phases, are allowed a deduction of up to 50% - with a maximum limit of 100,000 euros - on the investment.
The law on start-ups and digital nomads
The implementation of this law aims to attract the so-called "digital nomads", who are those people who have the possibility of teleworking and therefore being able to change their residence on a regular basis.
The start-up law will allow them to live and work in Spain for a period of five years and they will be subject to non-resident income tax.
At the same time, a new visa focused on teleworking has been created, whose function is to allow these digital nomads to live in Spain for a maximum period of one year.
Finally, investors and freelancers from other countries who work for Spanish start-ups will be able to benefit from the impatriate regime.
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