The Government estimates that some 10,000 companies could apply to the National Innovation Company (ENISA) for accreditation to access the tax benefits included in the Startups Law. So far, ENISA had received 1,900 expressions of interest to start the startup certification process.
Industry, Commerce and Tourism
The BOE has published today the ministerial order which regulates the criteria and the procedure for the certification of start-ups. And the National Innovation Company (ENISA), under the Ministry of Industry, Trade and Tourism, has already opened the window to apply for such certification. So far, ENISA had received 1,900 samples of interest to start the startup certification process.
The Government estimates that at least 10,000 companies will apply for the accreditation, which will be eligible for the tax benefits included in the Startups Law. The boosting effect of this accreditation will reach some 150,000 jobs, generating more facilities both for those who invest and for those who found this type of innovative company, having a multiplying effect on the Spanish economy.
The Minister of Industry, Trade and Tourism, Héctor Gómez, recalls that “the certification of a startup in Spain, the first European country to have a system for issuing certificates, will be based on the fulfilment of several criteria, including the age of the company, that its turnover does not exceed 10 million euros or that it has 60% of its workforce in Spain, among other requirements”.
According to Gómez, “The establishment of this system provides broad legal certainty to the start-up sector in Spain, encouraging more and more large funds to invest here. Spain is not only the best country to live in, but also the best country for entrepreneurship and investment. With this order, we culminate the procedure of the framework of the Law for the promotion of the ecosystem of start-ups and we begin a new time of modernization and of great opportunities not only for economic growth but also for the labour market”.
ENISA was chosen as the company responsible for implementing this certification in the Startups Act thanks to its experience in financing SMEs and emerging companies. Its investment amounts to more than 1,260 million euros in participative loans distributed in 8,280 loans, which have benefited 7,220 companies.
A profit that is distributed mainly in activities related to direct applications of the digital economy (including hardware, software, services and internet), but also with industrial products and services. Biotechnology, genetic engineering, medicine, health, financial services, hospitality and leisure, and with an important role in activities related to sustainability, energy and natural resources, among others.
Other Effects of the Startup Law
Since the Startup Law came into force, there has been an increase in the number of applications for visas and residence permits from foreign entrepreneurs who are considering Spain as a country for entrepreneurship, which has multiplied by up to five in some weeks, which is also a sign of interest.
Regarding digital nomads, in February 2023, Google searches for the term “digital nomads Spain” had multiplied by four compared to the previous year.
It is also important to consider the effect on investment in Spain. Between 2015 and 2021, investment increased fivefold, reaching a value of €10 billion in that year. Taking into account that the Startups Law raises the maximum deduction base for investment to €100,000 per year, increasing the rate from 30% to 50%, a significant increase in investments is also to be expected.
Support for female entrepreneurs
ENISA’s Digital Entrepreneurs line is endowed with a total of 51 million euros provided by the Ministry of Economic Affairs and Digital Transformation, through the Secretary of State for Digitalization and Artificial Intelligence, and is aimed at technology companies led by women, which are in the early stages of their business development.
With this line, the Government tries to cover the gap that exists in female entrepreneurship, mainly in the field of financing, since, according to different studies, only 16 % of startups of medium-high technological value are led by women, with this 16 % having access to only 1 % of the total financing available.
Since ENISA and the Secretary of State for Digitalization and Artificial Intelligence signed the agreement for its launching in August 2021, a total of 160 operations have already been approved for an amount of more than 26 million euros, having therefore covered more than half of the budget.
Minister Héctor Gómez recalls that “the line covers all types of sectors in the technological field and highlights the high and growing potential of female talent in Spain, as well as the Government’s firm commitment to developing it”.