ICEX-Invest in Spain | The Spanish Government has passed a bill to encourage an ecosystem for new companies, better known as the Startups Act, and by which it hopes to make Spain one of the most attractive destinations for investment, talent, and innovative entrepreneurs. The document includes significant tax breaks, eliminates red tape and makes procedures more flexible to encourage the creation of and investment in tech startups. It also includes important initiatives to attract and bring back international and Spanish talent, encouraging “digital nomads” – those entrepreneurs and remote workers who can live and work anywhere – to settle in Spain. These people will have the opportunity to live and work in Spain for 5 years and benefit from a special tax system by paying non-resident income tax. To attract Spanish talent back to the country, the usual requirements for this system have been relaxed (with the period of previous non-residence in Spain cut from 10 to 5 years).
The First Deputy Prime Minister of Spain and Minister for Economic Affairs and Digital Transformation, Nadia Calviño, believes that this law will make Spain one of the most attractive countries for startup creation, “aimed particularly at creating opportunities for young people and attracting investment and talent”. The law will establish a specific regulatory framework for companies of this type, which are the foundation of the new digital economy and create highly skilled job opportunities.
The Startups Act is one of the milestones set out in the Recovery, Transformation and Resilience Plan. This bill will make Spain one of the most attractive countries in Europe for investment, entrepreneurship and talent. It also complies with the recently established EU Startup Nations Standard: a set of practices designed to foster an entrepreneurial spirit in the European Union and encourage the creation of innovative new companies by establishing the right conditions for them to grow. This bill is accompanied by several different measures introduced by the Government to encourage the financing of these types of companies in Spain, including Fond-ICO Next Tech, which aims to mobilise investment totalling 4 billion euros and provide financial support for growing companies.