Last Thursday, November 3, the Congress of Deputies approved the Draft Law on the regulation for the promotion of the ecosystem of emerging companies. Now all that remains is for it to be approved in the Senate. In the coming days we will have more information about the deadlines.

The main fiscal measures are:

1. Impatriate regime:

although the period of application will not be extended from 5 to 10 years in the end, the measures are very positive.

• Reduce from 10 to 5 years the number of periods of non-residence prior to moving to Spain. The posting may take place in the first year of application of the scheme or in the previous year.
• Extend its scope to those who move to Spain and are_
  • (i) remote workers by electronic means, even if the posting is not ordered by the employer;
  • (ii) administrators of start-ups;
  • and (iii) persons who carry out an entrepreneurial economic activity or highly qualified professionals who provide services in Spain to emerging companies or who carry out training, research, development and innovation activities, representing more than 40% of the total returns obtained.
• Extend its scope to children under twenty-five years of age and the spouse, provided that they meet certain requirements.

2. Personal income tax

• Carried interest: the taxation of the remuneration known as carried interest as earned income is regulated, with a 50% reduction in the tax base, subject to certain conditions.
• Stock options: the exemption from work performance for the delivery of shares to workers of emerging companies is increased from 12k to 50k euros per year, without it being mandatory to offer them to all employees under the same conditions. Additionally, a special rule of deferral of the imputation of performance is approved (when it is quoted, the shares are sold or 10 years have elapsed), and a rule of valuation of the shares is approved for the purpose of calculating the value of the remuneration.
• Deduction for investment in start-ups: on the one hand, the deduction rate and the maximum base are increased from 30k to 50% from 60k to 100k euros; The term to acquire the shares is extended from 3 to 5 years, counting from the constitution of the start-up, and up to 7 years for certain categories of emerging companies.

3. Corporate Income Tax

The tax rate of the IS is reduced to emerging companies from 25% to 15%, during the first tax period in which the tax base is positive and in the following three, the deferral of the payment of the tax without guarantees during the first two years of activity is facilitated and the obligation to enter installment payments during the same period is eliminated.