Just a few days ago, the Spanish government approved a bill that seeks to promote the entire ecosystem related to emerging companies, which is why this article on what the Startups Law consists of. This law has been known as the Startups Law and its main function is to determine a legal framework by which these companies will be governed.
Today we are going to talk to you a little more about this bill and what are the most important points. Since despite the fact that it is a great advance, the truth is that there is still much to do to achieve a perfect law on this matter.
What is the reason for this Law?
The emerging companies sector in the country is a bit stagnant and this is due to the fact that there are a number of obstacles to entrepreneurship. One of the biggest drawbacks is related to the tax issue and is that for a startup it is likely that the taxes would be too many.
The government realized this problem, which is why they have looked for a way to eliminate these barriers. In this way, the startup sector in Spain is expected to gain momentum and become more attractive.
It is for this reason that this law has been created and despite the fact that there are great advances, it still needs to be consolidated. However, the government has classified this law as the most beneficial in the entire European Union.
What is the Startups Law?
When will this law be in force?
This is one of the biggest questions asked by people who are interested in forming a startup. It is not yet certain when this law will be in force, the law was approved by the government, but it has yet to obtain approval from parliament.
Once this is done, the law can enter into force, so we will have to wait for this law to be discussed and approved by parliament.
What is the Startups Law?
atresr Economists Lawyers
What is the Startups Law?
What is the Startup Law
The most important points of this law
- Increase in the amount of exempt taxes to which these types of companies will be subject. This increased from 12,000 euros to 50,000 euros per year.
- Taxes will be delayed until the agreed date, this may be when the company goes public or starts selling shares.
- The business tax will be lowered, as well as the income rate for non-residents and temporary residents in the country. The tax will have a reduction of 10% in total, it goes from 25% to 15%.
- People who are non-residents or temporary residents may opt for a residence visa of up to five years.
- Another thing that changed with this law is the maximum deductible for investments, which goes from 60,000 to 100,000 euros per year.
- The deduction rate has an increase of 20%.
- The period in which a company is considered as newly created has been increased to 7 years.
- The procedure to be able to open a company is simplified and refined, making the whole process quick and easy. It is even possible to do the entire process online.
- Workers who have another job in addition to their job at the startup will not have to make two contributions to social security.
There are many other incentives that are compiled in this new Startup Law, but these have been the most relevant changes. If the law is passed, it could greatly promote the creation of Startups in the country.
What is the Startups Law?
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