Gecko Towers
Have you ever thought of starting your own business or has your entrepreneurial zeal been blunted by the negativity often shown on “Dragon’s Den” or the often brutal approach of “The Apprentice”? Well, enterprise is alive and well in Spain. Central and local government campaigns are ongoing seeking to encourage you to consider whether you would prefer to get your business going in your home neighborhood or whether Spain would be more attractive.
Being based in Marbella I am happy to declare a bias. I’d like you to come and enjoy Spain’s Costa del Sol and make this your new businesses head quarters. As you’ll see below, I am supported in this aim by the Spanish Government.
I have written in a previous post of the interest of younger members of the business community who see Málaga and Marbella as viable new bases for the life and work balance. Are younger property buyers really disinterested by cheap booze and all day breakfasts?
Put simply there is nothing short of a Tech Revolution going on in Malaga that seeks to see this provincial centre in Andalucia as rivaling Barcelona for the prize of being the most enterprising coastal city in Spain.
In a recent article in the Catalan news imprint, “La Venguardia”, the suggestion was made that Malaga now seriously rivals Barcelona in terms of amenity quoting Felipe Romera the Director General of the Malaga Tech Park who acknowledged a curious debt to the last two years of Pandemia. “(The Pandemic) has led to an exodus of professionals who aspire to telecommute in a privileged environment”, S. Romera is quotes as saying. Furthermore, with the arrival in Malaga’s Town Hall in 2000 of the Partido Popular, led by the current Mayor, Francisco de la Torre, the cultural barometer that provide the right kind of environment for those “aspiring…. a privileged existence.”, has seen an exponential growth in 5 star hotels – now numbering five – museums and a restaurant and bar culture to rival the day and nightlife of Spain’s second city.
When my children were at school in the area, now some years ago, there were limited work prospects for students of international backgrounds post University. Typically they would, use their language and cultural advantages, to work in the property sector, hospitality or the leisure market. Any initiative aimed at attracting new career opportunities to the Malaga region must be warmly welcomed.
In December 2021 the Spanish Government initiated legislation aimed at providing entrepreneurs with an ecosystem to encourage the proliferation of new businesses.
The Startup Act comprises a menu consisting of tax incentives (affecting both corporate and non-resident income), the tax treatment of stock option changes, the streamlining of the mechanics of company registration and incoming investment. The overall drive is to make Spain hugely attractive to tech startups by providing an innovative user-driven landscape to incentivize entrepreneurs to view Spain as a compelling prospect for their business launch and to garner development capital – some which may actually come from the EU via the Fondo-ICO Next Tech.
In tandem with this approach, the Bill also introduced the required legislation to enable the granting of Visas to so-called “digital nomads” – please see our previous posts here Are you ready to become a Costa del Sol Digital Nomad? And New Spanish visa proposals aimed at attracting Digital Economy talent.
The impact of the legislation will align Spain with the most attractive European destinations for entrepreneurs and is clearly focussed on enabling enterprise to flourish. In addition, certain of the equality issues being addressed in the draft legislation will seek to make the advancement of female entrepreneurs a priority.
I would also argue that choosing to bring your startup business (defined as being less than 5 years old or in some cases 7 years, unlisted, independent and with an annual turnover of up to €5m) to the shores of the Mediterranean means that not only do you and your family directly benefit from the already very advanced infrastructure but also the astonishing good quality of life.
STOP PRESS: June 2022 – Various reports in the Spanish media have highlighted the comments of a senior politician that the so-called “Start Up Act” that comprises the Digital Nomad Visa legislation will have completed its journey through the Spanish legislature by the end of September 2022.
They outline that those seeking a Digital Nomad Visa will have to satisfy three criteria: The Applicant should have an existing a working relationship with a non-Spanish based Company that is authorised remote working; The Applicant must hold appropriate qualifications for the role and The Applicant should have not less than three years of in-post experience, to include a minimum of one year with the Company for whom they currently work.
The cherry on the top of this excellent arrangement seems to suggest that a variation of the so-called “Beckham Law” introduced when the eponymous footballer moved to Real Madrid in 2003 would apply. It seems that the successful Applicant for the Digital Nomad Visa would be allowed to be taxed as a non-resident in Spain for a period of four years.
Update: Recent announcements from Citibank Group and the UK venture capitalist GP Bullhound have confirmed their arrival in Malaga. Two exciting developments from forward thinking companies keen to engage with local and international talent while seizing the opportunity to offer an unparalleled lifestyle choice for employees, consultants and their families. Smart thinking that will surely be replicated my many more businesses in similar markets.
STOP PRESS: The so-called “Start Up” law ( the Law for the Promotion of the Emerging Companies Ecosystem) was finally approved into law by the Congress of Deputies on Friday 2nd December 2022 and will come into effect in January 2023.
It’s still nuclear as to whether Digital Nomads will be obliged to pay into the Spanish social security systems but the underlying objective of this legislation is the laudable ambition to make Spain “a magnet for international talent”. For which this wonderful country has my respect and wholehearted support.
Should you be interested in discussing the legal process involved in buying a property in the Marbella region, we would be delighted to assist you. Our multi-disciplinary team of bi-lingual, highly experienced and wholly independent Abogados and Asesores Fiscales are ready to help you.
Please call me, Mark FR Wilkins, during usual business hours on +34 600 343 917 or, if you prefer, or e-mail me at mark@roslegal.es
Please note that our posts are for general interest. There is no substitute for proper legal advice tailored to your specific circumstances as provided by a qualified Abogado who is experienced in the application of the Spanish Law.
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