Spain finally has a law for startups and digital nomads

What’s new in the recent Law 28/2022 on Startups?

23 / Jan

The Spanish government’s new development strategy as an entrepreneurial nation presents us this law for startups in an attempt to catch up with other Eurozone countries that already have similar legislation. You can access the law here:

The aim of the Startup Law is essentially to encourage emerging entrepreneurship by facilitating administrative procedures, as well as applying tax incentives for this purpose.

Until very recently, the Spanish administration subjected startups to the general commercial and tax regime, with no special consideration given to the nature of these enterprises. This made  their establishment very difficult in Spain.

This regulation gives important tax incentives to companies and employees, by reducing tax rates for companies in terms of corporate tax and income tax for non-residents, among others, and for employees in terms of corporate stock options and elimination of double social security contributions for 3 years when they are both employed by others and a start-up with self-employed workers.

The main new phenomenon recognised in this new law is that of so-called “digital nomads”, formally known as international teleworkers. These are workers who can carry out commercial activity outside the national territory using telematics and computers. Spain now offers the possibility of cooperating in this way with a company based in Spain, provided the percentage of this activity does not exceed 20% of the company’s total activity..

International teleworkers and entrepreneurs to whom this law applies are offered some advantages, among which we would like to highlight the following:

  • Access to the Spanish national territory and to the residence regime (with extended validity):
  • Administrative processing with short deadlines, the possibility of transfer or family reunification and the application of ‘silencio positivo’ (positive decision in case of failure to decide in time);
  • The obligation to prove the absence of a criminal record in the past 5 years is eliminated, reducing this obligation to the past 2 years.

This new law supports not only entrepreneurs and their internationalisation, but also students and postgraduates studying in Spain. For example, by allowing 24-month permits for foreign students in Spain,  as well as for those who wish to reside in Spain during their professional internships.

There is no doubt that the Spanish state has the will to imitate other Eurozone countries and modern models such as the Estonian and its agility with international entrepreneurship.

If you think the new features of this law can be applied to your business, do not hesitate to contact us so we can see how you can benefit from them.

Rafael Montes Velástegui