Spain has always been a popular destination for entrepreneurs and startup companies. And now, with the recent passing of a new law specifically geared towards startups, it is poised to become an even more attractive option for those looking to launch a business. Here’s what you need to know about the new startup law in Spain.
Previously, foreigners looking to establish a startup in Spain had to obtain a non-lucrative visa. A non-lucrative visa is difficult to obtain and comes with a number of restrictions, making it far from ideal for those wanting to start a business. However, under the new law, entrepreneurs will be able to apply for a special residency permit that will allow them to live and work in Spain without restrictions. In order to qualify for this permit, applicants must prove that their income is derived from their startup company.
Another key change under the new law is the elimination of fees for incorporating a company electronically. This will make it even easier and more affordable to launch a business in Spain. Additionally, the timeframe for registering a company with the Mercantile Registry has been reduced from 5 working days to just 6 hours.
The new law also includes provisions for employee remuneration. Specifically, it will allow startups to use stock options as a form of compensation for workers. This is a major change from the previous law, which did not allow stock options to be used as remuneration. The exemption on income tax for these stock options has also been increased from 12,000 to 45,000 euros per year.
It is often overlooked, but Spain has always been a very business-friendly country. This is due to a number of factors, including the country’s pro-business regulations and low taxes. With the recent passing of the new startup law, Spain is now even more attractive for entrepreneurs and startup companies. With its easy incorporation process and favorable tax treatment for startups, Spain is poised to become a major hub for innovation and entrepreneurship.
LEGID is excited to have officially launched in Spain! We are now able to better serve our clients in Europe, and provide quality legal services to individuals and startups. Learn more about how we can help you with your business in Spain by contacting us today: hi@legid.app.