The first EU Startup Law will enter into force in January in Spain after four years of intense debate.

On Thursday, Congress approved the draft Law for the Promotion of the Startup Ecosystem, the well-known and long-awaited Startup Law, which was created with the aim of promoting the startup ecosystem in Spain.

After a year since it began its journey through Parliament, and with several blockages behind it due to the intense legislative activity that the Economic Affairs Committee has experienced this year, the law has been passed with broad agreement.

What will be the next step?

It will have to pass through the Senate, where it is expected to be processed as quickly as possible so that it enters into force before the end of the year.

Curiously, without this legislative framework, Spain is one of the countries with the most start-ups in the EU, with significant growth in terms of investment. With 11,100 startups (emerging companies) employing 140,000 people, Spain is the fourth European country in terms of the number of this type of company.

Important fiscal measures

In terms of tax developments, the new law will confirm the reductions in the tax burden for start-ups, resulting in a reduced corporate income tax rate of 15%, compared to the general rate of 25%.

In addition, the period for subscribing to shares or holdings is generally increased from three to five years, counting from the incorporation of the entity, and up to seven years for certain categories of start-up companies.

What is the purpose of this law?

The attraction and retention of talent is materialised in the creation of a new category of visa for digital nomads, called visa for international teleworkers, to carry out a work or professional activity remotely for companies located outside the national territory, with a duration of one year.

If you have any doubts about this issue, please do not hesitate to contact us, by telephone to Carlos Torrentbó Castillo or Carles Monfort Codina or by e-mail: ctc@btsasociados.com, or cmc@btsasociados.com , we will be delighted to help you.