The “Ley de Startups” (Startups Law) has come to revolutionise the entrepreneurial ecosystem in Spain, positioning the country as a benchmark in Europe for the promotion of innovative companies. If you are thinking of starting up or already run a startup, this law offers you a series of advantages that can make the difference in the success of your project.
- Boosting innovative businesses
The Startups Law is designed to support emerging companies with a vocation for innovation. These companies must meet a series of requirements, such as not being more than five years old (seven in sectors such as biotechnology), not distributing dividends and having a turnover of less than €10 million. In addition, it must be guaranteed that at least 60% of the workforce has an employment contract in Spain. Does your company develop disruptive products or services? This is your moment!
- Tax advantages: reduced taxes
One of the main attractions of the law are the tax incentives tax incentives. Start-ups will be able to benefit from a reduction in the corporate tax rate, which is lowered from 25% to 15% for the first four profitable years. In addition, higher deductions are offered for investors, increasing the tax-deductible investment limit from €60,000 to €100,000. The result? More financial oxygen for your company in its first crucial years.
- Administrative simplification: fewer barriers, more opportunities
The process of setting up a start-up is now faster and simpler. The Law allows the incorporation of a company in a single step and completely electronically, eliminating the complicated notary and registry procedures that previously slowed down the start-up process. In addition, startups are exempt from the equity balance requirement during their first three years, allowing them to make losses without being dissolved.
- Global talent attraction and visas for digital nomads
If your company needs to attract international talent, this law makes it easier than ever. Among its measures is the creation of a visa for digital nomads, ideal for professionals who can work from anywhere in the world. In addition, the law facilitates the entry and stay of foreign entrepreneurs, investors and students, extending the period of initial residence.
- Support for innovation
To facilitate innovation in regulated sectors, the Act promotes the creation of controlled test environments or sandboxes. This allows startups to experiment with new technological solutions safely and under regulatory supervision, before launching them on the market.
- Public and private investment incentives
In addition to tax benefits, the law encourages public and private investment. The requirements for accessing public aid have been simplified, making them more transparent and accessible to start-ups. This, combined with the improved legal framework, reinforces Spain’s attractiveness as an investment destination for foreign capital.
In short, the Startup Law is a unique opportunity for startups looking to grow in a favourable environment, with tax advantages, administrative facilities and measures designed to attract both talent and international investment.
In short, the Startups Law offers a legal framework that facilitates the growth of startups in Spain, with a combination of tax incentives, administrative facilities and measures to attract talent and international capital. If your company is looking to innovate and grow, this law can be a key support point for your success.
This publication does not constitute legal advice.
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