The Start-up Law also includes tax benefits for the creation of companies. Newly created companies will receive benefits, rising in a general way, over three to five years (or seven years for some sectors), and the maximum deduction base for investment in new or recently created companies has been extended (going from €60,000 p.a. to €100,000 euros p.a.), as has the type of deduction (from 30% to 50%).
For non-residents, the project offers the possibility of deferring the corporate tax debt or income tax of non-residents during the first two years of the tax base being positive, without guarantees or interest for delay, for a period of 12 months (for the first year) and six months (for the second year). The obligation to make instalment payments of these taxes in the two years after the tax base reports positive also disappears.
One of the main points of the law is structured around administrative agility, especially in relation to attracting foreign investment. To do this, the law guarantees the possibility of establishing the company digitally, defining the non-obligatory nature of obtaining the identification number of foreigners (NIE for non-resident investors), requiring only that both they and their representatives obtain tax identification numbers (NIF). The text also includes the provision of free notary and registrar services for the constitutions of limited companies, as well as in the publication in the Official Gazette of the Mercantile Registry.
The Start-Up Law also provides clarity on taxation for digital nomads, who will have the possibility to reside and work in Spain for five years and benefit from the special tax regime and income tax regime for non-residents, as well as reducing the requirement for previous non-residence in Spain from 10 to five years. In addition, the bill eliminates the double Social Security contributions for three years for workers with more than one contracted role.
After its approval by the Council of Ministers, the bill now faces parliamentary processing, which (under normal conditions) means it would enter into force around June or July 2022.
If you’d like more information, get in touch with Auxadi’s Spanish team.