Spanish law and startups

Spain is not the easiest place to start a business, the World Bank rates it as 32nd out of 190 countries in the world in terms of the ease of doing business and 28th in terms of how easy it is to start a business. But don’t panic,  we have already written a post about How to set up a business in Spain and we help our members by introducing them to the organisation CADE which can help you through it all and remove a lot of stress, minimise time and save you money.


If you have a great business idea and want to start it under the Spanish sun, there is help out there for startups! There are publicly funded organisations such as CADE set up in order to encourage entrepreneurship and coworking centres like ours have experienced entrepreneurs on hand happy to help. There are also funds and grants available to help with setting up a business and expansion costs, as well as national and international investors taking an interest in Spanish startups.

From a legal standpoint, things have improved since the Ley de Emprendedores was introduced in 2013. Although many hoped it would go further, the law did help by cutting self-employment payments by 80% during the first six months for new “autonomos” over the age of 30, removing a big barrier for getting started in business.


It also introduced an improved VAT rule, where VAT (IVA) doesn’t need to be paid to the tax office until the business has been paid, helping with cash flow. The new law also includes a reduced personal liability to protect an entrepreneur’s house, up to the value of 300,000€, and made it easier to start a new business when one had already failed. For foreigners looking to enter the country from outside the EU, the law brought in an Entrepreneur Visa scheme. This allows access to the country if you are bringing a business which will innovate or generate employment. All of this has definitely helped people to get into business for the first time in Spain. Read more about the Ley de Emprendedores here in Spanish, or contact your nearest CADE centre for advice.


The largest barrier to startup growth remains the cost of employing people and the very strict employment laws which make it difficult and expensive to hire and fire, but businesses regularly get around this and keep themselves more flexible by using self-employed freelancers, as and when they need them.


So don’t be put off, Spain is a wonderful place to live and with a good understanding of the processes, the laws and the restrictions and professional help, it is possible to start a successful business and really succeed. The recent financial crisis here in Spain has encouraged a new wave of entrepreneurs who are hungry for success and Spanish startups are attracting a lot of interest and funding from all over the world. Here are the top 10 Spanish startups which were tipped for success this year. Technology startups are doing particularly well, and there is also a trend for socially oriented companies which is an “indicator of the growing diversity and maturity of Spain’s startup scene” according to the Financial Times.


Spain’s main startup hubs are the cities of Madrid and Barcelona, but with the opening of innovative coworking brand Our Space in Marbella, the rise of the technology park in Malaga and the never ending appeal of the Costa del Sol, we see a trend in more serious business people coming to the area.


Our Space Marbella is more than just a coworking centre, it is a startup hub and business incubator, which will help members to succeed during the hard start up phase and also encourage training and development for the wider business community on the Costa del Sol. We run regular training and networking events to help businesses take those important first steps and welcome all startups to take advantage. Book your complimentary hotdesking pass and find out how coworking can help you  

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