Congress has approved the draft Law for the Promotion of the Startup Ecosystem, also known as the Startup Law, which is expected to enter into force on January 1, 2023.

The norm, which incorporates more than 80 amendments, defines what a startup is, includes administrative and bureaucratic simplifications, encourages startups and grants tax benefits to foreign workers and digital nomads.

The Government’s business case is that in three years after the entry into force of the new law we can achieve a minimum increase of 20% over the current investment.

With the changes introduced to the regulation, investors and self-employed professionals will be able to benefit from the impatriate regime under which they will be taxed at 24% personal income tax for five years and will not be taxed for wealth tax. As long as 40% of their turnover is related to knowledge economy activities or startups.

Are you a foreigner and want to create a company in Spain? In Duguech&Dip we offer you the support and legal advice you need. Schedule an appointment with us.

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