Benefits of the Startups Law 

In July 2023, the Spanish legislator published the Order PCM/825/2023, dated July 20, which regulates the criteria and procedure for the certification of startups, in line with Law 28/2022, also known as the Startups Law. 

This article analyses the aforementioned Order, which establishes the evaluation criteria to determine whether a venture is innovative and scalable, fundamental requirements for startups to access the special tax regime and other benefits provided for in this law. The procedure that companies must follow to take advantage of this special regime is also described. 

It is important to note that, according to Spanish legislation, a startup is defined as any legal entity that simultaneously meets the conditions described in Article 3 of the Startups Law and has been certified by the Empresa Nacional de Innovación, S.M.E., S.A. 

The main advantages are as follows: 

• Reduction of the Corporate Tax rate to 15%. 
• Deferral of tax debts. 
• Exemption from making instalment payments of Corporate Tax. 
• Elimination of certain registration fees for the incorporation of a new company. 
• Exemption from the obligation to obtain a NIE in the case of non-resident foreign investors. 
• A three-year bonus on Social Security contributions for self-employed entrepreneurs who also work as employees. 
• Increase in the exemption amount, up to 50,000 euros per year, for the delivery of stock options to employees. 
• Increase in the deduction for investment in newly created companies, raising the rate to 50% and the maximum base to 100,000 euros. 
• Promotion of the creation and development of controlled test environments to validate the viability and impact of new models in regulated activities. 
• Easier provision of guarantees or advance payments in the case of granting subsidies. 

Requirements of the Startups Law 

Criteria to prove a company’s entrepreneurial and scalable nature: 

ENISA assesses the potential and scalability of a company based on the following criteria: 

• Market attractiveness: The supply and demand within the sector in which the company operates are analysed. 

• Project phase: The stage of development of the business project is considered. 

• Business model: The structure and viability of the proposed business model are evaluated. 

• Competition: The market situation and existing competition are examined. 

• Human resources: The experience, training, and track record of the team leading the company are assessed. 

• Key contracts: Important agreements with suppliers, lease contracts, and other strategic elements are reviewed. 

• Management and customer contracts: The volume of customers and users, as well as the stability of these contracts, are evaluated. 

Additionally, ENISA considers the signing of one or more credit policies with the entity itself in the last three years, provided that at least one of them is in force and there are no incidents, as a direct approval criterion for the company’s scalable nature. 

Procedure to Access the Benefits of the Startups Law 

Companies interested in obtaining the certification must submit their application through the electronic registry available on ENISA's website, accompanied by the following documents: 

• Tax Identification Number (NIF) of the applicant company. 

• Articles of incorporation. 

• Annual accounts of the last fiscal year. 

• Certificate of being up-to-date with the Tax Agency. 

• Certificate of being up-to-date with Social Security. 

• Sworn statement accrediting compliance with the Startups Law. 

• Business plan. 

ENISA has a maximum period of 3 months to respond to the application. If no response is received within this period, it will be considered that the certification has been granted favourably, in accordance with the principle of positive administrative silence. 

The date on which the company will begin to enjoy the benefits of the Startups Law will be the same as when the certification as an emerging company or startup is obtained.