During the time of the pandemic caused by Covid-19, the so-called teleworking was put into practice. Currently, there has been a great expansion of this method of work that has given rise to a new lifestyle called digital nomadism.
The concept of digital nomads is designed for people who work remotely and, thus, it allows them to change their residence periodically, being able to combine a highly qualified job with tourism in the city where they live
Tax Incentives:
Title II and Final Provisions 2ª and 3ª establish a set of tax incentives that favor this type of companies. These are as follows:
Corporate income tax (IS) is reduced from 25% to 15% for a maximum period of 4 years, provided that the company retains the status of emerging company.
Deferral of payment of tax debts during the first 2 years of the activity.
The delivery of shares or participations to employees, called stock options, will have an exemption of 50,000 euros instead of the 12,000 euros previously established.
Issuance of shares for treasury stock.
The deduction rate is increased from 30% to 50% and the maximum base is increased from 60,000 euros to 100,000 euros.
Founding partners are also allowed this deduction regardless of the amount they have contributed to the company.
It increases from 3 to 5 years the term to subscribe the shares or participations from the date the company is constituted and up to 7 years for certain categories of companies.
Advantages for foreign workers
Improved access to the special tax regime.
The advantages are extended to employees and directors of emerging companies regardless of the percentage of share capital they hold in the company, as long as they work remotely in Spain.
Option to be taxed through IRNR (non-resident income tax) to the following persons:
Children of the taxpayer under 25 years of age or of any age if he/she suffers from a disability.
The spouse.
The parent of the children.
The IRNR will not be taxed on work income in kind that is exempt from IRPF taxation.
What facilities does this Law offer for foreign investment?
Reduction of the bureaucratic requirements for foreign persons who are not going to live in Spain.
No obligation to obtain the NIE.
Facilitation of the electronic application for the NIF (essential to make the investment effective), both for foreign individuals and for foreign companies that are created through CIRCE.
There are 2 electronic channels for foreign investors who do not reside in Spain so that they can obtain the NIF without the need to go to an administrative office for its application or collection.
Equivalence of documents issued in other countries.
Foreign investors acting through a representative must have a power of attorney, which can be done through a notarial document or in a mandate contract with representation where the consent of the fiscal representation must be stated.
The notarial documents (made by a notary and not by a consul or consular affairs officers) issued abroad will not be necessary to adapt the content of the same to the Spanish legal system.
Facilities for the entry and residency of highly qualified professionals, entrepreneurs and investors.
Creation of a new visa
A new visa and residence permit is created for the residence of this type of professionals.
The visa for teleworking has an international character.
Entry and residence in Spain for a maximum period of 1 year for both employed and self-employed workers.
The workers who are already in Spain and want to continue residing there, can apply for the residence authorization for a maximum period of 3 years that can be renewed for a period of 2 years, thus facilitating the obtaining of permanent residence after 5 years.
There is the possibility for the worker to relocate with the family, either from the initial moment or later.
Extension of the validity of residence permits from 2 to 3 years.
The passport will become a sufficiently accredited document for the person to be registered with the SS (Social Security) during the period of the first 6 months of residence or stay.
Formal and corporate facilities for the incorporation of an emerging company
It will be much easy to create emerging companies, since they will only need to obtain the NIF to be able to carry out all the procedures in order to incorporate the company.
The registry and notary procedures are excluded, and a totally electronic procedure is considered.
