Spain is set to become one of the promised lands for start-up´s and ´digital-nomads´, for which it will establish significant tax cuts, eliminate bureaucracies and adopt measures to attract the so-called ´digital nomads´. These are the objectives of the start-up bill that the Council of Ministers have approved, and which goes hand in hand with two other laws to be created in the Congress of Deputies, which are expected to be complete in the early months of 2023.
As far as promoting start-ups is concerned, the main incentives arefiscal, and there are reductions everywhere. The tax rate on corporate tax and non-resident income tax is reduced from the general rate of 25% to 15% during the first four years.
The maximum deduction base for investment in newly or recently created companies is also extended from 60,000 to 100,000 euros per year, as well as the type of deduction, which goes from 30% to 50%, and for longer. In addition, the taxation of stock options is improved and the deferral of the company tax debt is allowed.
To stimulate the installation of digital nomads in Spain, professionals who, thanks to technology, carry an office in their suitcase, will have the opportunity to reside and work in Spain for five years, and pay non-resident income tax.
This new law will put Spain at the forefront in the creation of these companies which arises at a time when there are more and more entrepreneurial digital nomads and investors who can work from anywhere in the world.
This new law is expected to be in place and operational for the early months of 2023.
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