Keys to the Startup Law
Residence authorization for students, entrepreneurs, foreign investors, and visa for digital nomads.
The new regulation establishes modifications in the duration of residence authorizations and creates a visa for digital nomads, thus facilitating the process of attracting and retaining international talent.
With the Startups Law, the initial residence authorization is extended from one to three years for entrepreneurs who want to start a business activity in Spain. In addition, they will be able to renew the permit for two years and apply for permanent residence after five years. During the first six months of stay, the passport will be sufficient to register with the Social Security.
In the case of students, the residence permit is extended from one to two years for those who are in internships, in search of employment or for those who want to start a business at the end of their studies.
For foreign investors, the initial residence authorization is increased from one to three years.
In addition, for applicants for residence authorizations under the Startups Law, the issuance of the Foreigner Identification Number (NIE) is facilitated; and a web page for online applications is enabled.
Visa for digital nomads
This visa may be applied for by foreigners not residing in Spain who work remotely for a company based in another country or for themselves and will be valid for an initial period of one year.
Provided that the requirements of the telework visa are maintained, the residence authorization will have a maximum duration of three years, renewable for two-year periods.
Workers, entrepreneurs, investors, highly qualified professionals, and their families will be able to pay Non-Resident Income Tax (IRNR) during the tax period of change of residence and the following five years. Thus, more taxpayers can benefit, and international teleworking is encouraged.
Promotion of foreign investment
The Startups Law includes modifications to reduce the bureaucratic procedures for investors who are not resident in Spain, with the aim of facilitating the process of foreign investment in Spanish companies.
With the new regulation, foreign investors who contribute capital to a start-up company, whether newly incorporated or already incorporated, will not be required to obtain a Foreigner’s Identity Number (NIE). The only requirement will be the electronic application for the tax identification number (NIF) to the State Agency of Tax Administration (AEAT).
The National Entrepreneurship Office (ONE)
The new National Office of Entrepreneurship (ONE) will oversee organizing and coordinating the support services for entrepreneurship. It will be a one-stop shop for services for entrepreneurs and will serve as a point of attention and guidance for innovative entrepreneurship in Spain.
It will also provide information for the granting of visas and residence permits for entrepreneurs, investors, and highly qualified professionals.
If you need more information about tax benefits for startups and for foreign entrepreneurs and investors, please contact us. At Dugueh&Dip we can advise you on everything related to the new Startup Law and all the related procedures to create a company in Spain. Call us.
Since legal advice must be tailored to the specific circumstances of each case, and laws are constantly changing, nothing on this article should be used as a substitute for the advice of competent legal counsel. The content on this article is offered only as information. And does not constitute solicitation or provision of legal advice. You should always consult a suitably qualified lawyer regarding any specific legal problem or matter.
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