The Spanish startup scene is thriving and growing rapidly. Spain is becoming an attractive destination for entrepreneurs and investors alike, with the country’s vibrant culture and diverse business ecosystem providing a great foundation for entrepreneurs to launch their businesses.
Spain’s digital infrastructure and access to capital, along with its favourable taxation system, have been instrumental in driving the country’s startup growth. With a growing number of startups popping up in Spain, it’s clear that the country is well-positioned to provide the necessary resources and opportunities to those looking to launch a business.
Spain has emerged as a leader in entrepreneurship due to several factors
- Supportive government policies: The Spanish government has implemented several policies that promote entrepreneurship and innovation, such as offering tax incentives, grants, and subsidies for startups. Additionally, they have established institutions like the Spanish Ministry of Industry, Trade and Tourism, which provides support for entrepreneurs and small businesses.
- Access to funding: Spain has a growing venture capital industry, and there are also various funding programs and initiatives that support startups and small businesses. Many Spanish banks offer specific programs and services tailored to the needs of entrepreneurs.
- Vibrant startup ecosystem: Spain has a vibrant startup ecosystem, with several emerging hubs in cities like Madrid, Barcelona, Valencia, and Malaga. These cities offer co-working spaces, incubators, accelerators, and networking events that facilitate collaboration and growth.
- Skilled workforce: Spain has a highly skilled workforce with a strong focus on innovation and creativity. Additionally, the country’s universities and research centres produce many graduates in science, technology, engineering, and mathematics (STEM) fields.
- Quality of life: Spain has a high quality of life, with a warm climate, affordable cost of living, and rich cultural heritage. These factors make it an attractive destination for entrepreneurs looking to start and grow their businesses.
What are the requirements to be an entrepreneur in Spain?
- To set up a business in Spain, non-EU citizens must first obtain a working visa, specifically an entrepreneur visa or work permit, as a self-employed individuals.
- To be eligible for the entrepreneur visa, you need to demonstrate that you have sufficient training and qualifications to develop your business idea successfully.
- You will also need a foreigner’s tax identification number (NIE), which is essential for any fiscal transactions in Spain, such as incorporating a company. It is important to note that the entrepreneur visa is intended for individuals who intend to launch an innovative and scalable business project in Spain.
If you plan to start a small business, you might be better suited to obtaining a self-employment visa instead. Additionally, as a foreigner, you cannot be inside Spain to apply for a work permit, and it will be your employer initiating the application procedure.
Once this requirement is met, there are several other steps to follow to register a company that would be the same for EU and non-EU residents:
- Open a Bank Account: A bank account must be opened, and the capital deposited will depend on the type of company to be established.
- Obtain a Public Deed of Incorporation: This must be done in the presence of a notary.
- Choose a Legal Constitution: The most common legal constitution steps taken by foreign companies to start a business in Spain are to set up a subsidiary company or a branch office.
- Additionally, entrepreneurs should be aware of other obligations and requirements, such as obtaining a tax identification number and registering with the social security system.
- It is also advisable to seek professional legal and financial advice to ensure compliance with all regulations and requirements.
What’s the digital nomadic startup law in Spain?
The digital nomadic startup law in Spain also called the Ley de Startup or the Startup Law was approved on November 3rd, 2022, by the Spanish Parliament after a long legislative process. Its main objective is to promote the creation and growth of startups, as well as to attract talent and international investors to the country.
One of the key provisions of this law is the Digital Nomad Visa, which allows digital nomads to pay Non-Resident Income Tax instead of Personal Income Tax and enjoy other benefits. The Startup Law also offers tax breaks, fewer bureaucratic requirements, and other incentives for startups. The approval of the Startup Law is expected to improve the entrepreneurial environment in Spain and attract new companies to the country.
What is a startup?
A startup refers to a company in the early stages of development, typically founded by 1–3 entrepreneurs who seek to capitalize on perceived market demand by developing a viable product, service, or platform. Startups are often financed by their founders and may attempt to attract outside investment before they get off the ground. Startup founders dream of giving society something it needs but has not been created yet – generating innovation and impacting the market at scale.
The term “startup” typically refers to technology-based ventures, although it can apply to businesses in any industry that are in their early stages of operation. In addition, startups are generally characterized by their high growth potential, innovative approach, and the potential for disruption of existing industries or markets.
Why you should choose Spain to forge your entrepreneurial journey
Spain offers many advantages for entrepreneurs, including access to funding, a competitive tax environment, world-class infrastructure, and a highly developed network of mentors, investors, and advisors. Additionally, its vibrant startup scene, skilled workforce and high quality of life make it an ideal place to launch and grow a business.