Start-up law and freelancer visa

In July, Spanish authorities announced the “Startup Law” (Ley de Startups), which Pedro Sánchez’s government had been developing for more than three years. With this law, authorities aim to attract young companies and “digital talents” to Spain, as reported by leading Spanish media.

By “startup,” the Spanish government means young (up to 7 years old) innovative companies with turnover up to €5,000,000, whose shares are not traded on the stock exchange. More than half of the company’s employees must be Spanish citizens. Preferences for such companies include: reducing corporate tax from 25% to 15% in the first 4 years of operation, deferral of income tax payments, and other benefits. With these measures, the government intends to “catch up” with Italy and Portugal, which have already launched similar initiatives. Spain is placing special emphasis on the Canary Islands: it is believed that the archipelago’s digital companies actively attract specialists from around the world for relocation or remote work. A non-resident tax regime will be introduced for remote workers for up to 10 years.

There are also plans to issue a “freelancer visa” for remote workers — in the future, it could become one of the ways to obtain Spanish residence. Currently, the most popular ways to obtain residence in Spain remain the Golden Visa for investors (Golden Visa) and residence for financially independent persons (No lucrativa).

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