Two draft laws aimed at facilitating entrepreneurship and investment in companies are currently being processed in the Congress of Deputies. We are referring to the Bill to promote the start-up ecosystem and the Bill on business creation and growth.
In recent years, especially since the financial crisis of 2008, there has been a huge growth in entrepreneurship, based on innovation and technology, and many innovative and technological companies are starting up.
These types of companies are necessary for current economic growth, which is why the administrations, both at EU and national level, are adopting legislative measures to contribute to their development.
Technological and innovative companies encounter problems in their initial stages, arising, among other things, from a lack of financing, or administrative difficulties, because they do not fit in well with the existing legal regime for companies or because of the costs involved in setting up a new company.
These draft laws seek to establish a framework to facilitate the development of these companies. The two draft laws are part of the Policies of the Recovery, Transformation and Resilience Plan, which seeks to achieve the modernisation and recovery of the Spanish economy and job creation.
Among the measures included in the Bill to promote the start-up ecosystem are the reduction of tax and social charges, lowering the rate of Corporate Income Tax and Non-Resident Income Tax from 25% to 15% in certain cases and for a specific period of time, the reduction of bureaucratic procedures for the establishment in Spain of entrepreneurs and workers known as "digital nomads", and for general corporate operations, such as, for example, the reduction of registration periods in the Mercantile Registries.
For their part, the measures included in the Bill on business creation and growth are aimed at resolving the obstacles to business creation and alleviating the existing lack of investment, the limits of the deduction for investment in personal income tax will be increased, so that the deduction may reach 50%, with the maximum deduction base being 100,000 euros.
Although the measures contained in these two Bills are not new, the reduction of bureaucratic and fiscal burdens is always positive and contributes to business development in a country.
Pilar Rubio / Miguel Vidal