Spain launches “startup law” that will give tax exemptions for entrepreneurs and investors

The Spanish Council of Ministers approved this Friday a set of tax exemptions for entrepreneurs and investors and simplified the process of creating a new company, as part of a new bill to make the country more attractive to startups.

The legislation, known as the “startup law”, is part of a package of reforms that Madrid agreed with the European Commission in exchange for the release of funds to recover from the pandemic.

“Startups are the basis of the new digital economy, they generate highly qualified jobs and have the potential to grow. With this bill, Spain is at the forefront in promoting an entrepreneurial ecosystem,” said the minister. of Economy, Nadia Calvin.

Registration fees will be waived and the requirements to create a new company will be streamlined, Calviño said.

Spain ranks 97th in the ranking of the world Bank in terms of ease of starting a business, one of the lowest scores in Europe.

With the new law, employees will be able to receive up to 50,000 euros (about $ 56,385) a year in “stock options” (options to acquire shares over a period of time) -a common form of remuneration in startups- without paying taxes, compared to to the previous limit of 12,000 euros.

They will also increase the amount and percentage so that investors can claim deductions for investments in startups.

The bill will now go to Parliament for approval.

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