Spain recently passed the “Startup Act” at the end of 2022.
This new act improves the conditions for new companies to be set up in Spain, and also for entrepreneurs and digital nomads who want to live in Spain and obtain some business advantages.
With this act, any non-EU citizen can apply for a special visa to work in Spain as a digital nomad for up to five years. They will need to have lived outside Spain for at least five years before in order to qualify.
Limited liability companies can now be set up with just one euro of share capital, with no minimum as required previously, through a special process that will allow a company to be fully incorporated in under 3 working days.
With respect to corporate income tax, provided no more than 20% of a company’s income comes from organizations based in Spain, the normal 25% rate of income tax will be reduced to 15% for the first four years it is based in Spain.
Digital nomads will also be allowed to bring close relatives to live with them in Spain.
The Spanish ‘digital nomad visa’ will also be open to executives, start-up employees and investors, in a bid to attract talented people and investment while boosting the country’s attractiveness as a global business hub.
Similarly, ANDORRA, the country located between France and Spain, is also drafting a new act to improve entrepreneurs’ social protection and reduce their taxes. For instance, they will have a 50% reduction in their taxes for earnings below 24,000 euros per year, but also reductions and improvements in health insurance for entrepreneurs and their families.
Lidia Closa, Emin Lawyers, Barcelona
