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Category: Legal in Spain

Is it possible to be the managing partner of a company in Spain as a non-resident foreigner?

Is it possible to be the managing partner of a company in Spain as a non-resident foreigner?

Director of a company

A subject that usually generates many doubts is the question of how a foreign person can be a managing partner of a company in Spain. The Spanish Capital Companies Law states that both individuals and legal entities can be administrators of a capital company without the need of any requirement related to nationality. If you want to know how to become a director of a company, stay until the end, join us! 

How can you pay less income tax on the loss of value of the shares?

How can you pay less income tax on the loss of value of the shares?

Value of shares

One of the most effective ways of saving is the one that can be done through the income tax return. It will allow you to pay taxes only for the real benefits you had for your investment. In this way, you take advantage of the losses when selling below the value of the shares to reduce your tax burden. Do you want to know how this is possible? I invite you to stay with us until the end to find out all about it. Here we go!

What are the tax incentives for investors brought by the Startup Law this 2023?

What are the tax incentives for investors brought by the Startup Law this 2023?

Tax incentives

In 2023, the Startup Law will come into force, which has several tax incentives for investors and entrepreneurs, meaning that they can enjoy up to a 50% tax deduction. This means that they will be able to enjoy up to a 50% deduction of the amount. Do you want to know more? Stay until the end and learn about the new tax incentives for investors this 2023, let’s get to it!

What does Royal Decree Law 18/2022 of October 18 consist of and what novelties does it bring with it to promote renewable energies?

What does Royal Decree Law 18/2022 of October 18 consist of and what novelties does it bring with it to promote renewable energies?

Royal Decree Law 18/2022

Spain brings fiscal novelties for 2023. The Royal Decree Law 18/2022, which approves measures to protect energy consumers, reduce the demand for natural gas and promote the use of renewable energies, was published. If you are interested in knowing what are all the novelties that this new decree brings, stay with us until the end of this new article and know the details of the new taxation to promote renewable energies, let’s get to it!

What is the status of work authorizations after the modification of the Spanish General Law on Foreigners?

What is the status of work authorizations after the modification of the Spanish General Law on Foreigners?

Work authorization

In August of last year, the reform of the Immigration Law came into force, which brings with it beneficial changes for immigrants residing in Spain. This new approach to the law will help to make all bureaucratic processes easier when it comes to managing any procedure, making getting a work permit a simpler process. Find out with us how the work permits are now with this reform!

What does the new Startup Law in Spain consist of? 

What does the new Startup Law in Spain consist of? 

Startup Law

Last December 1, 2022, the Congress approved in a definitive way the Law for the Promotion of the Startup System, better known as the Startup Law. This law aims to establish a specific regulatory framework to support the creation and growth of these emerging companies, do you want to know more about the Startups Law and how it can benefit you? Then this article is for you!

What is the new Startup Law?

On November 3, the Congress of Deputies approved the Startups Law with a different consensus than usual in the Chamber. The new Startups Law BOE passed with 177 votes in favor. It was expected an agile processing in the Senate to approve it in its entirety by the end of the year so that it could enter into force at the beginning of this 2023.

This Law is the Spanish Government’s regulation that seeks to facilitate the creation and development of new technology-based and innovative companies. In addition, it seeks to make the country a reference in terms of entrepreneurship at European level.

There is no doubt that the legal framework is one of the aspects that can most promote the creation of new companies. Consequently, it also boosts the economy.

But how will the government achieve this? Well, through a series of tax incentives, favorable regulations, elimination of bureaucratic obstacles and the relaxation of many of the procedures. 

In that sense, the Startup Law is governed by the following objectives:

Startup Law

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What are the main changes proposed by the Startups Act 2022?

Ten months after its arrival in the House, the Startup Law retains its main elements. But, at the same time, it has introduced important novelties such as:

Startup Law

Incorporation of cooperatives to the regime of emerging companies.

If you are a self-employed entrepreneur who wants to take advantage of the benefits of the Startup Law, you will have to set up a Limited Company (SL) or a cooperative. These, thanks to the new amendments, are also an option.

There will be a certifying company and the administrative silence will be positive

The Empresa Nacional de Innovación, S.A. (ENISA) will certify which companies are considered startups and which do not meet the conditions. But now, with the new changes introduced, it will be able to enter into agreements with third party public or private collaborating entities.

Positive administrative silence is also established. In other words, if your company applies to ENISA for certification as a startup and there is no pronouncement from ENISA within three months, this means that the company will obtain a favorable resolution.

Requirements to certify that a company is a startup

The Startup Law goes deeper into different criteria when evaluating the requirements that companies need to be certified as startups. The analysis of the degree of innovation and the scalability of the business model is more detailed.

In addition, criteria such as competence, team training, reliance on suppliers, technological innovation and more will be weighted.

Training

The new Startup Law establishes that graduates of vocational training or higher education will also be able to apply for residency for highly qualified profiles. In this way, the benefits of these may be equated to vocational training studies.

Serial entrepreneurs

The figure of serial entrepreneurs, i.e., those who have successfully launched a startup before, is recognized. In this case, they are granted the benefits of the Startup Law to the first four companies they create. Thus, the previous limitation of three companies is extended.

In Spain, these entrepreneurs represent 62%, according to the Entrepreneurship Map. For many, this recognition is really important. This is because the more experience and learning they have, the more likely they are to succeed and, in addition, niches in which to innovate can be detected.

Bonus of the quotas

It establishes the rebate of the quotas for self-employed workers of startups and companies that develop multiple activities. That is to say, if you are a freelancer who starts your activity in a startup while working in another company, you will be 100% bonus for the quota during the first three years, to exempt them from having to pay twice.

Turnover

The business threshold is increased to 10 million euros in order to consider a company as a startup. One of the requirements is that “it does not reach a turnover of more than ten million euros”. However, the original text established a limitation of 5 million euros.

Tax treatment for venture capital entities

A different and specific tax treatment is established for the so-called carried interest, i.e., venture capital entities. They will be taxed as earned income with a 50% tax exemption.

Digital nomads

The visa and special tax conditions for international teleworkers, better known as “digital nomads”, are established. The visa has a duration of one year and a special tax regime is contemplated for this type of worker. 

Likewise, they will be taxed under the IRNR (Non-Resident Income Tax) and not under the IRPF (Personal Income Tax).

You may also be interested in: All about the entrepreneur visa in Spain

When will the Startup Law come into force?

Initially, the new regulations were scheduled to come into force in autumn 2022. Now, however, it will not be until January 2023.

Who is affected by the new Law?

Those companies that wish to be governed by this new legislation must comply with the following characteristics:

Startup Law

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Do you want to develop your business idea in the Spanish territory? The Startup Law can be a great option for you. If you need legal or tax advice to achieve the success of your business, in TAS Consulting the best professionals are at your disposal to accompany you every step of the way. Contact us through tasconsultoria@tas-sl.es and schedule your free appointment.

What are the measures proposed by the Crea y Crece Act to combat late payment?

What are the measures proposed by the Crea y Crece Act to combat late payment?

Measures to combat late payment

The Business Creation and Growth Law, better known as the Crea y Crece Law, includes a series of measures and reforms designed to promote business development and boost entrepreneurship in the country. Among them, it stands out its fight against commercial delinquency. If you want to know which are the measures to combat late payment proposed by the Crea y Crece, then this article is for you!

5 tips for your HR department to comply to the letter with the new Data Protection Law  

5 tips for your HR department to comply to the letter with the new Data Protection Law  

New Data Protection Law

It is important to study the new Data Protection Law in Spain in every HR department. This can avoid sanctions, reprimands, as well as create a safe organizational climate. If you are concerned about the status of your company with respect to the new Data Protection Law in force, it is imperative that you pay attention to the implications it entails, find out here! 

What is the new Crea y Crece Law to motivate the creation of companies in Spain?

What is the new Crea y Crece Law to motivate the creation of companies in Spain?

Crea y Crece Law

The Law that will allow you to create a company with just one euro, fights against late payments and promotes electronic invoicing to make your day-to-day life as an entrepreneur much easier. This is how the new Crea y Crece Law is presented. Do you want to know more and find out how it can help you to carry out your business idea? Then this article is for you!

What is the new Digital Services Law?

What is the new Digital Services Law?

Digital Services Law

After two years, we can say that Europe will become the first free digital market in the world, with predictable and clear rules for all those who participate in it. The European Parliament plenary has approved the new Digital Services Act with 539 votes in favor and the Digital Markets Act with 588 votes in favor. Do you want to know more about the Digital Services Act? Read our article and find out all about it.