This Law ‘beginnings‘ It is already a material reality. This State official bulletin (BOE) released the text of the officially named text this Thursday. Ecosystem Promotion Act Business emergingThe new legal framework will go into effect tomorrow, three weeks after its final approval in Congress, and two days before Christmas. Thus, the Government achieves its goal of enactment of this law at the beginning of 2023.
The text, among other things, defines what is what. public administration From now on ‘startup’ or innovation will mean the ways these companies have to be accredited as such, or tax incentives access as well as their investors.
In summary, this legal framework covers companies that have their headquarters or business in Spain for a maximum of five years (seven if any). biotechnological, energetic, Industry or if they developed Proprietary technology designed entirely in Spain), does not come from a merger or spin-off, does not distribute dividends, is not traded on the stock exchange, 60% of the workforce works here and has an “innovative entrepreneurship project”.
“A start-up company will be considered innovative when its purpose is to solve a problem or improve an existing situation by developing new or significantly improved products, services or processes compared to the latest technology – the text will be clarified later – and a technological or industrial failure or business model failure. carries with it an implied risk”.
financial benefits
Among other things, these companies are a more favorable taxation how to pay Corporation tax or a Non-Resident Income Tax 15% and only from the first period when your tax base is positive, and also the ability to defer this payment for the first two years. In addition, foreign investors only need to tax identification number investing and thus entering a ‘startup’ capital can deduct 50% of their contribution with a maximum deduction base of 100,000 Euros per year.
“The new law provides us with a regulatory framework that responds to the characteristics and innovative nature of the emerging ecosystem,” he said. First Deputy Head of Government and Minister of Economy, Nadia Kalvino, after the final confirmation of the text. “This law completes the renewal of the regulatory process to improve the business environment in Spain, which has already had a positive impact on investment, growth, innovation and skilled jobs.”