In December 2022, the Government approved the Startup Law, the first in Europe to provide specific support to the entrepreneurial ecosystem and allow Spain to align itself with the most attractive countries in Europe to attract investment, entrepreneurship and talent.

It should be noted that this law, in addition to tax incentives, provides for the first time an institutional basis, defines the entrepreneurial ecosystem, defends and promotes it. For the first time, entrepreneurship, innovation and talent have a solid legal framework in Spain.

In addition to including important tax measures, the law eliminates bureaucratic hurdles and makes procedures more flexible to encourage the creation and investment in technology-based emerging companies (startups). Another of the pillars of the new law is that it promotes important measures to attract and recover international and national talent, favoring the establishment in Spain of teleworkers and the so-called "digital nomads".

Thus, important tax incentives are established for companies, investors and workers of startups, including the EU's more favorable treatment of remuneration through stock options.

On the other hand, the procedures to be able to set up a company with a single step and by telematic means, without notary or registry costs, are streamlined. A one-stop shop is also established for the declaration of the innovative nature of the company and access to the benefits provided for in the Law.

Finally, to attract talent, the tax regime of the Non-Resident Income Tax applicable to managers and employees of startups, investors and "digital nomads" – people working from home temporarily displaced to Spanish territory – and their family members, who will be able to access a special visa of up to 5 years, is improved. Likewise, the return of talent is favored by reducing the previous non-residence in Spain to 5 years to access this special regime.

One of the pillars for this law to be applied effectively is that it will have a  National Entrepreneurship Office (ONE), the body in charge of coordinating entrepreneurship support services. Its website functions as a virtual meeting point for innovative entrepreneurship in Spain and offers information on procedures, grants, calls and conferences, among other content.