Spain’s Start-Up Act Visa: Your Definitive Founder Pathway Guide

Written by Jorge M., startup counsel in Madrid and habitual coffee-abuser.

Spain’s brand-new Ley de Startups finally gives international founders the fast lane they have been begging for: a dedicated visa, clear innovation yardsticks and—yes, really—lower taxes.
I have spent the past year walking founders through the fine print, from Berlin SaaS wunderkinds to a married couple who met in a Valencia surf camp and are now building AI fins (true story). Below is the playbook I wish every client read before our first call.

“Spain used to say mañana to entrepreneurs.
The Start-Up Act replaces mañana with vámonos.”

Why Spain Launched the Start-Up Act

Spain’s tech sector grows 4× faster than the overall economy, yet we leak talent to London, Berlin and—since the pandemic—smooth-talking tax havens that rhyme with “bliss.” Parliament finally realised:

• ⅔ of Spanish VC money was going to companies whose founders already held a residence permit elsewhere.
• Each €1 of startup VC creates €2.60 in downstream jobs, according to ICEX.
• Digital nomadism is no longer a niche (see our tongue-in-cheek ode to remote grannies in “Digital Nomad Grandparents: Keeping Up With Kids Online).”

Cue the Start-Up Act, effective 1 Jan 2023.

Are You Eligible? The Core Checklist

Spain’s immigration office delegates the innovation test to ENISA (a government-backed venture lender). Expect to document both legal and economic criteria:

1. “Emerging Company” Status

You must tick all of these:

• Age – ≤ 5 years since incorporation (7 years for biotech, industrial or energy).
• HQ – At least 60 % of your workforce or operational budget in Spain.
• Independence – Not part of a corporate group with > €10 M revenue.
• Unlisted – Shares not traded on a regulated market.
• Profit – No dividend distributions yet.
• Scale Intent – A credible plan for rapid, mainly tech-driven growth.

2. Innovation & Scalability

ENISA applies a points matrix. Typical green flags:

• Proprietary tech: registered patents, codebase, or novel algorithms.
• High R&D ratio: ≥ 15 % of annual costs allocated to R&D.
• Disruptive business model: e.g., using blockchain to cut freight paperwork by 70 %.
• Accelerator pedigree: acceptance into an EU-recognised programme.
• Traction: pilot clients, LOIs or MRR, even if modest.

Pull-quote: “Traction beats translation—show them numbers, not buzzwords in English that may confuse a Spanish civil servant.”

3. Founder Profile

Founders must own ≥ 50 % collectively and hold C-level roles. Solo founders are allowed, but dual-founder cap tables score better.

How to Prove Innovation—Practical Dossier Tips

I have reviewed more than 30 ENISA submissions. The strongest dossiers share three traits:

1. One-pager in Spanish first, English second. Decision officers are bilingual, yet default to Spanish when skimming.
2. Evidence folder—screenshots of product, GitHub commits, patent receipts, demo video links.
3. Third-party praise—media mentions, pilot client testimonials, or letters from a university research centre.

Anecdote: A Dutch client building an IoT cold-chain tracker included a ThermoFisher endorsement letter. The visa was approved in 21 days—record speed.

Capital Requirements & Job Creation Targets

Surprisingly, there is no mandatory minimum investment spelled out in the Act. However, in practice:

Key points:

• Own Funds Allowed – Bootstrapped founders can use personal savings; show a bank statement covering 12 months of Spanish minimum wage × number of resident family members.
• Dilution Cap – Founders must retain ≥ 50 % after external capital.
• ESOP Friendly – Employee options do not count as dilution for eligibility.

Tip from the trenches: Spanish labour law makes contratos de prácticas (paid internships) very affordable. Early-stage startups often hit the “job creation” narrative by hiring two interns and one senior dev.

The Residency Timeline—From Airport Stamp to Permanent Card

Below is the realistic, coffee-stained timeline I map for clients:

1. Pre-approval (0–2 months)
   • Gather docs ➜ ENISA innovation certificate ➜ BorderPilot plan ➜ migration lawyer pre-checks.
2. Visa Application (1–3 weeks)
   • Submit at Spanish consulate or already inside Spain on a tourist stamp.
   • You receive a 12-month entrepreneur visa.
3. Residence Permit Conversion (Month 10–12)
   • Switch to a 3-year residence card. No need to exit/re-enter.
4. Renewal (Year 3)
   • Quick online renewal for another 2 years if milestones met.
5. Permanent Residency (Year 5)
   • After 5 years of continuous stay (absences ≤ 10 months), apply for residencia de larga duración.
6. Citizenship Option (Year 10, or 2 for some LATAM nationals)
   • Prove language + civic integration; dual nationality allowed only with specific countries.

Travel perk: The initial visa already grants Schengen-wide mobility of 90/180 days, so your investor roadshow in Berlin or Lisbon is hassle-free.

Tax Incentives Worth Salivating Over

Spain famously squeezes oranges harder than Valencia bartenders—except under the Start-Up Act. Highlights:

15 % Corporate Tax—Not 25 %

Newly recognised “emerging companies” pay only 15 % CIT for the first four profitable years, counting from the first year your balance sheet turns black.

Founder Stock Deferral

Capital gains from founder shares can, subject to conditions, be deferred until exit—critical when you plan a Series A priced at 10× your vesting price.

Non-Resident Tax Lite (IRNR)

If you personally spend ≤ 183 days in Spain, you can elect to be taxed as a non-resident at 24 % on Spanish-sourced income only—effectively Spain’s version of Portugal’s NHR.

Beckham Regime 2.0

Remote-worker founders can tap the rebooted Beckham Law: flat 24 % on worldwide income up to €600k for six years. Yes, you can invoice your Delaware C-Corp’s advisory fee into a Spanish bank and pay 24 %, not 45 %.

Call-out block:

Caveat lector
None of the above is formal tax advice. Always confirm with a registered asesor fiscal—ideally one who replies before jueves.

Comparing Spain to Other Founder Visas

I am frequently asked, “Spain or Asia?” For perspective, read BorderPilot’s breakdown “Japan vs Taiwan: Startup Visa Friendliness.” A quick snapshot:

• Processing time – Spain now averages 30–45 days; Japan can stretch to 6 months.
• Capital floor – Taiwan wants US$200k wired in; Spain has no hard floor.
• Tax – Spain’s 15 % beats Japan’s ~30 %, but Taiwan’s 0 % on offshore gains still rules.

Bottom line: Spain is the sweet spot if you value fast Schengen access and lower cost of living, but don’t need zero-tax nirvana.

Common Pitfalls & How to Dodge Them

1. Incomplete Apostilles
   Solution: Schedule notary + Hague Apostille back-to-back before you hop on the flight.
2. English-only Pitch Deck
   Spanish regulators dislike guesswork. Deliver bilingual slides.
3. Dormant Bank Account
   Open a Spanish IBAN early; wire at least €20k to show “skin in the Iberian game.”
4. Founder Relocation Delays
   Staying abroad > 6 months can sink your “effective management in Spain” claim.
5. Ignoring Data Protection
   Spain’s AEPD is GDPR on steroids. Bake compliance into your MVP, or risk €60k fines that kill seed rounds.

War Stories & Nuggets from a Madrid Lawyer

A few nuggets from recent cases (names redacted, tapas bill not):

• A Kenyan fintech team secured approval after we proved 30 % of their engineering time was R&D on AI-fraud detection—despite zero patents. Hours of Jira logs beat fancy buzzwords.
• Two American co-founders forgot they were “married to Delaware.” We re-domiciled the IP into a new Spanish SL, then issued convertible notes to the U.S. entity. The consulate loved the clean share cap.
• A Brazilian founder panicked over the Spanish language test for citizenship; I told him Netflix subtitles count as study. He now quotes La Casa de Papel at pitch events. Motivation found.

Frequently Asked Questions

Q. Can I bring my spouse and kids on the same application?
Yes. Dependants get derivative residence permits automatically once your startup card is issued. Proof of private health insurance is mandatory.

Q. What happens if my startup fails within five years?
You lose “emerging company” status but may switch to a highly-skilled employee permit if you land a job ≥ 1.5× the Spanish minimum wage.

Q. Is remote work from Spain still possible under this visa?
Up to 20 % of revenue can stem from non-Spanish clients. Anything beyond and you might fit better under the Digital Nomad visa (different track).

Your Next Step: Map It With Data, Not Guesswork

Spain’s Start-Up Act turns ambitious slides into a credible immigration path—if you align your cap table, hiring plan and tax game from day one. That alignment is exactly what BorderPilot automates: feed in your metrics, family profile and runway, and the platform spits out a bespoke relocation blueprint complete with timelines, cost projection and document checklists.

Feeling inspired?
Create your free relocation plan in minutes and let data—not folklore—guide your Spanish venture.