Spanish Congress passed the Start-ups Law, which introduces interesting tax incentives for start-ups. Currently is on the Senate, expecting to be finally passed shortly. The most relevant incentives are the following:
+ A reduction in Corporate Tax and in Non-Resident Income Tax, which drops from 25% to 15%, for four years.
+ The tax exemption applicable to stock options is raised from € 12,000 to € 50,000 per year. In addition, taxation is delayed until the date of settlement, either when the stocks are sold or if the company goes public.
+ The deduction for investment in new or recently created companies is increased, raising the deduction rate from 30% to 50% and increasing the maximum base from € 60,000 to € 100,000.
+ The requirements for applying to the special tax regime for inbound expatriates have been relaxed, including the possibility of applying for highly qualified entrepreneurs and self-employed workers who provide services to emerging companies. The period of non-residence in Spain prior to relocation has also been reduced from 10 to 5 years and the possibility of applying has been extended to spouses and children under 25 years of age.
+ With regard to taxation of carried interest (commission on the success of venture capital managers), the exemption will be up to 50%, although it will continue to be taxed as employment income.
