The Startup law has been finally approved in this 2022!
The long awaited Startups Law was finally approved last Friday 2nd December 2022 by the Congress of Deputies in Madrid.
We now know the definitive benefits that this law will bring to any national or foreign citizen wishing to start up a business in Spain.
The text has not yet been published in the Boletín Oficial del Estado (Official State Gazette – where all laws approved in Spain are published), but we can already tell you many of the advantages that this Law incorporates.
What interests us most is that this law has created a special visa for Digital Nomads for all foreigners who can work 100% remotely. Whether you are self-employed or working for a non-Spanish company, you can apply for this visa.
If you were thinking of opening a company in Spain, read on because here we will also explain the keys to find out if your business can be considered a Startup and benefit from the aid of this new law.
Is it already possible to apply for the Digital Nomad Visa?
No, not yet. Although many of you may be thinking that it is already possible because the Law has been approved, there are still some steps to be completed. This Law still has to be ratified by the King and officially published. As it has already been approved by the Congress, there is now a maximum period of 15 days for it to be published in the Official State Gazette. Therefore, before Christmas it will have already entered into force and will take effect. The digital nomad visa can start to be applied for after Christmas and we will have the first applications for the new year.
Keys to find out if your business idea can benefit from the Startup Law
This law is aimed at the following types of companies:
- Newly created start-ups.
- Companies that already exist but are no more than 5 years old.
- Companies in the industrial sector, new technologies, biotechnology that already exist but have been in existence for a maximum of 7 years.
The characteristics must meet the following requirements:
- It must be an innovative project with a scalable business model.
- It must be an independent company, i.e. it must not arise from the separation of two companies as it would not be considered newly created.
- The registered office of the company must be in Spain.
- 60% of the workers must have a Spanish contract.
- It must be a technology-based company, which means that in order to generate products or services it must make a majority use of technology and scientific-technical knowledge.
What are the benefits of the new Startup Law if I want to open my company?
- The time to open a business is reduced, now you will be able to open your company in less than 5 working days.
- You will be able to create the company electronically, without having to be physically present.
- Notary and registry fees for the incorporation of your company will be free of charge.
- It will now be possible to set up a limited company (sociedad limitada) for only 1€, whereas before it was necessary to invest a minimum of 3,000 euros.
- Corporate tax and non-resident income tax is reduced from 25% to 15%.
- The double contribution to social security is eliminated for 3 years when you carry out another activity as a self-employed person.