Spanish tax ecosystem for start up companies

The preliminary project of the Spanish Law to foment an ecosystem for start up companies includes new interesting tax measures.

This Law is included in the Spain Digital 2025 Agenda and searches providing a favourable context for the creation and growth of start up companies with a technological background. The new tax measures are focused in the area of Corporate income tax and Payroll taxes.

Pending its approval, it is worth knowing beforehand which will be its main features, that we can already anticipate in the event that the Law is finally approved was its stands right now, without any big changes.

✔ The Law will be focused on start up entities that will be those: recently created or with a maximum of 5 years since their inception or 7 years if included in the biotechnological, energy or industry sector, that have their social domicile or permanent establishment in Spain as well as the majority of their payroll with Spanish contract, not quoted in a stock market, not distributing dividends and not reaching a turnover of 5 million euro.

✔ The tax incentives for this type of enterprises will be focused on: