Last December the Spanish government gave a green light to a law commonly known as the “Startups Law”. This regulatory proposal was created with the intention of putting Spain at the forefront of attracting investment, talent, and innovative entrepreneurship.

It is important to keep in mind that this regulation has not yet been approved by the Spanish Parliament, and therefore it could still be subject to changes before it goes into effect. Some of the measures it proposes are listed here:

• The bill includes important tax measures, eliminates bureaucratic obstacles, and creates procedures that encourage the creation of and investment in technology-based startups more flexible. It also includes important measures to both attract and recover national and international talent, favoring the establishment of teleworkers and “digital nomads” in Spain.
• The bill introduces notable tax measures, like a reduction in the Corporation Tax (from 25% to 15%) and in the Non-Resident Income Tax for four years.
• To attract talent, they introduced improvements to the tax regime for non-resident income tax applicable to managers and employees of startups, investors, and “digital nomads” – teleworkers who have temporarily relocated to Spanish territory – and their families, who will be able to access a special visa for up to five years. Also, it favors the return of talent by reducing the previous non-residence period in Spain to 5 years to access this special regime.
• The government has rolled out funding measures that encourage the growth of startups, like FondICO Next Tech, whose investment target reaches four billion euros, and the National Innovation Company (ENISA), which focuses on startups led by women, and which has a budget of 51 million euros to reduce the gender gap in the realm of innovative entrepreneurship.

As we said earlier, this is just a proposal for now, and its processing could result in changes, but it is relevant because it opens the way for digital nomad visas that could benefit workers abroad who wish to establish themselves in Spain.

*This article was updated in October of 2022.