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Learn about the Startups Law promoted by the Spanish government
A few weeks ago, the Spanish parliament began the discussion of a bill that seeks to promote the startup ecosystem in the country.
This law that seeks to determine and establish a legal framework in which new startups can be founded and developed was known as the "Startup Law ".
This law is a great advance in the matter, since you want to facilitate the creation of startups within the country.
Additionally, it seeks to establish some tax benefits for these small businesses in favor of the economic and technological development of the country.
On this occasion, we are going to talk a little more about this law that, although it represents a great advance in the matter, the truth is that it still needs to be on par with other countries.
What is the reason for this Law?
The start-up sector in the country is a bit stagnant and this is due to the fact that there are a series of obstacles to entrepreneurship. One of the biggest drawbacks is related to the tax issue.
It is no secret to anyone that Spain handles quite high taxes, this is something that affected startups in the country. But not only to these but to any small company in the country.
The government realized this problem, which is why they have sought ways to eliminate these barriers.
In this way, it is expected that the startup sector in Spain will gain momentum and become more attractive. And, of course, that this leads to more people investing in the development of the country.
It is for this reason that this law has been created and despite the fact that there have been great advances, it still needs to be consolidated.
However, the government has cataloged this law as the most beneficial in the entire European Union. In any case, we will have to wait to find out the real impact it is going to have and if it manages to convince people.
When will this law be in force?
This is one of the biggest questions that people who are interested in forming a startup ask themselves.
It is not yet certain when this law will be in force, the law was approved by the government, but it still needs to be approved by parliament, which has the final decision.
Once this is done, the law can enter into force, so we will have to wait for this law to be discussed and approved by parliament. This law is expected to be approved in the coming months. Until then, startup policies will continue as before.
The most important points of this law
There are some points that this law has that are the most remarkable and important. Next, we are going to quickly list each one of them.
Increase in the amount of exempt taxes to which this type of company will be subject. This was increased from 12,000 euros to 50,000 euros per year.
Taxes will be delayed until the deal date, this may be when the company goes public or starts selling shares.
The business tax will be lowered, as well as the income rate for non-residents and temporary residents in the country. The tax will have a reduction of 10% in total, going from 25% to 15%.
Non-residents or temporary residents may opt for a residence visa for up to five years.
Another thing that changed with this law is the maximum deductible for investments, which goes from 60,000 to 100,000 euros per year.
The deduction rate has an increase of 20%.
The period in which a company is considered as newly created has been increased to 7 years.
The procedure to open a company is simplified and fine-tuned, making the whole process quick and easy. It is even possible to complete the entire process online.
Workers who have another job apart from their job at the startup will not have to make two contributions to social security.
There are many other incentives that are included in this new Startups Law, but these have been the most relevant changes. If the law is approved, it could greatly promote the creation of Startups in the country.
