New START UP's ACT 2003 - SPAIN
Good morning from Spain;
On December 1, 2022, Congress has definitively approved the Law for the promotion of the ecosystem of emerging companies, known as the "Startups Law", whose objective is to establish a specific regulatory framework to support the creation and growth of companies emerging. In the coming days it will be published in the Official State Gazette ("BOE").
Its entry into force is scheduled for the day after its publication in the BOE, although the main tax novelties will not apply until January 1, 2023.
In this document, we present the main novelties that the Startup Law introduces for: (i) managers and funds; (ii) emerging companies, their investors and entrepreneurs; and (iii) expatriates; among which the following stand out:
It classifies the so-called "carried interest" as income from work in personal income tax, integrating it into 50% of its amount under certain requirements.
It makes the treasury stock regime of emerging companies more flexible and allows them not to incur in causes of dissolution due to losses until three years have elapsed since their incorporation.
It incorporates tax benefits in the taxation of stock options, the deduction for investment or in the taxation of the emerging company itself.
100% of the quota of the Special Self-Employment Regime is discounted for corporate self-employed workers who continue to be employed by others.
Start-ups operating in regulated sectors will be able to apply for temporary trial licenses for one year.
It introduces modifications in the tax regime for expatriates so that more taxpayers can benefit and in immigration matters to promote international teleworking.
Certain companies and branches must disclose "country by country" information on Corporation Tax.
- Commercial and Business Law