completion of Congress of Deputies approved this thursday Draft legislation, popularly known as ‘Startup Law’, to promote the ecosystem of emerging companies, The rules mainly consider two lines of reform for entrepreneurs: on the one hand, simplification of administrative procedures and, on the other hand, a series of tax incentives.
the ideal is over Congress followed with 177 votes in support, 88 votes against and 75 abstained from the text.Thank you for the favorable votes from PSOE, United We Can, Citizens and PNV. Votes against came from Vox and PP benches, despite the fact that from the party of Alberto Nez Feizu declared support for the bill.
paper and during its passage through the commission, the text issued on council of ministers About 80 amendments were included. Once approved by the plenary session of Congress, the text will be sent to the Senate to continue processing there. The government hopes that the new rule will be implemented before the end of the year.,
Minister of Economic Affairs and Digital Transformation, Nadia CalvinoAssured during the session in which the text was approved that it is an “important” and “pioneer” law, which “Allow Spain to be at the forefront in promoting and attracting talent and investment in this new digital economy with such rapid growth” And it shows “what the real debate is for”.
More than 80 amendments to improve the law
During its parliamentary process, more than 80 amendments have been incorporated into the project, two of them during this final session,
Last Changes Introduced Inclusion of cooperatives in the emerging business systemallow positive administrative silence Accredited by ANISA (National Innovation Company, SA) a start up Or deepening criteria when evaluating the degree of innovation and scalability of a business.
Others acknowledge the potential for change tax agency For Check whether required requirements have been met and maintained Increases the limit of penalty provided for availing tax incentives and reversal of these benefits, when one of the partners is convicted, which shall apply only if the guilty person has at least one part of the capital be 5%.
other thing, Access to benefits is equalized by highly qualified professionals for people studying vocational training And the requirements for these workers for companies are abolished and the permit granted to foreign higher education students to find employment or start a business project after completing their studies is extended for one more year, Up to two total.
Another agreed change allows the same participant to register up to a quarter start up and take advantage of the anticipated benefits, Expansion by another company Estimated limit so far in the criteria.
Tax Reform for Entrepreneurs
Even then, Any change does not alter the system of expected tax benefits in project approved by governmentWith more favorable taxation for both companies and workers.
The project, which was approved by the government in 2021, Offers administrative simplification and a range of tax incentives for start-upsas a lack of do up to 15% of companies during the first four years; Possibility of deferring the tax debt or eliminating the obligation to pay installments.
Additionally, it installs 50% tax deduction on annual investments up to EUR 100,000, Tax exemption for stock options up to EUR 50,000; and encourages the creation of sandboxamong other measures.
Definition of what is startup
Emerging companies are defined as newly formed companies that are not more than five years old, seven in the case of certain strategic sectors; headquartered in Spain, which has not invoiced more than 10 million euros and that Developing an Innovative Entrepreneurship Project It has a scalable business model, among other requirements.
And we keep going back and forth with the Spanish AI agency
In addition, the regulation also includes an additional provision to create a Spanish Agency for the Supervision of Artificial Intelligence and to expand the amendment to the Auditing Act.
High Commissioner believes startup law will change the country
The High Commissioner of the Entrepreneurial Nation of Spain, Francisco Polo, believes that the startup law is “designed to sustain and profoundly transform the country.”
In statements to EFE, Polo has assured that the rule’s approval by Congress “This is a fundamental milestone to guarantee prosperity and well-being for decades to come”As the foundation is being laid “to build a more innovative, more resilient economic model capable of creating more and better jobs for people.”
Polo highlights that it is a law “extremely ambitious”, in which “lots of background work to find the best compromise” With both the agents of innovative entrepreneurship and the political forces that have made it possible to “make a solid law that will last for decades”.
,This is a law that comes with a huge consensus with the entire entrepreneurship sectorWith a great work with various political forces and it touches on issues which are very deep”, he said.
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