The Spanish entrepreneurial ecosystem has taken a significant leap forward in recent years. If you have an innovative idea, are launching a startup, or already manage an emerging company, you need to be aware of Law 28/2022 on the Promotion of the Emerging Business Ecosystem, better known as the Startup Law. This legislation, which came into force in 2023 and remains fully in effect until 2026, positions Spain as one of the most attractive countries in Europe for starting a business, investing, and attracting technological talent.

In this guide we explain everything you need to know about the Startup Law: what exactly a startup company is according to the law, what tax benefits you can obtain, how to get official ENISA certification, how much you can really save on taxes and what mistakes you should avoid so as not to lose these privileges.

What is the Startup Law and why is it a game-changer?

The Startup Law is one of the most comprehensive and ambitious legal frameworks in Europe Designed to support the creation and growth of innovative startups, it goes beyond isolated tax benefits, establishing a comprehensive regulatory ecosystem that combines economic incentives, administrative simplification, attracting international talent, and greater legal certainty.

Now, it is important to clarify a key aspect: The benefits provided for in the Startups Act do not apply automatically simply by virtue of establishing an innovative company. In order to access the tax, labor and administrative incentives, it is essential that the company obtain previously the official “start-up company” certification issued by ENISA, following an express request and an evaluation process.

The fundamental objective of the law is to transform Spain into a hub of innovation and entrepreneurship capable of competing with leading European technology centers such as Berlin, Amsterdam, and Stockholm. To achieve this, the legislation is structured around four essential pillars:

  • Relevant tax incentives, applicable only to companies certified as emerging, which reduce the tax burden during the most critical phases of the project. 
  • Administrative simplification, which facilitates the formation and management of companies, especially when using the electronic procedures provided for by the regulation. 
  • Attracting international talent, through specific visas and a favorable tax regime for certain foreign profiles. 
  • Legal certainty, through an official certification system that clearly defines which companies can benefit from Law 28/2022 and under what conditions.

Who can be considered a startup: legal requirements

In the common language of the entrepreneurial ecosystem, the term startup It is used to refer to innovative, fast-growing projects with scalable business models. However, Not every startup, in an economic or market sense, automatically has the legal status of an "emerging company"“ for the purposes of Law 28/2022.

The Startup Law establishes a specific and restrictive legal definition, And only companies that meet all legal requirements and obtain the corresponding certification will be able to benefit from the incentives provided for in the standard.

The main requirements include the following:

Maximum age
 The company cannot be more than 5 years old since its registration in the Commercial Registry, extendable to 7 years in certain strategic sectors.

Corporate independence
 It cannot have arisen from restructuring operations of already consolidated companies, except in legally permitted cases.

Presence in Spain
 It must have a headquarters, tax domicile or permanent establishment in Spain and maintain at least 60% of its workforce with an employment contract in Spanish territory.

Innovative and scalable business model
 You must develop an innovative project with technological, industrial or business model risk, and with significant growth potential.

Billing limit
 The annual turnover cannot exceed 10 million euros.

No stock market listing or dividend distribution
 The company cannot be listed on regulated markets nor have distributed dividends.

Regulatory compliance and sustainability
 You must be aware of your legal obligations and not engage in activities that cause significant damage to the environment.

How to obtain ENISA certification step by step

To access the benefits of the Startup Law, simply meeting the requirements isn't enough: you need to obtain the official certification issued by ENISA (National Innovation Company). This certification is free, entirely electronic, and serves as a single point of contact valid for all public administrations.

Step 1: Preliminary verification of requirements
 Before starting the official process, carefully check that your company meets all the formal requirements (age, headquarters in Spain, turnover, etc.). If you have any doubts about the innovative or scalable nature of your project, you can consult ENISA beforehand through their website.

Step 2: Register on the ENISA portal
 Access the certification platform on the official ENISA website (www.enisa.esIf you are already an ENISA customer because you have previously applied for financing, you can log in with your existing credentials. If you are new, you will need to register by creating a user account.

Step 3: Submitting the electronic application
 The application must be submitted entirely electronically through the designated online registry. You must attach:

  • Documentation proving the company's existence (articles of incorporation, registration in the Commercial Registry, updated bylaws)
  • Financial and accounting information (annual accounts, minutes books if available)
  • Detailed description of the innovative entrepreneurial project and its business model
  • Information about staff and employment contracts
  • Documentation that proves the innovative nature (patents, certifications, R&D projects, investments received, expenses on innovation)
  • Business plan explaining the scalability of the project

Step 4: Analysis and evaluation by ENISA
 Once the complete application is received, ENISA begins the evaluation process. It has a maximum of three months to issue and notify the decision. During this period, ENISA may request clarifications, additional information, or corrections. It is essential to monitor your email regularly, as these requests will suspend the three-month period.

ENISA specifically evaluates two critical dimensions:

Degree of innovation: They analyze whether your project truly offers technological, methodological, or business model innovation compared to the current market. They assess aspects such as the presence of R&D&I (if innovation expenditures represent at least 151% of total expenses), protected industrial property (patents, utility models, registered software), previous innovation certifications (such as AENOR certifications for innovative companies), public funding received for innovative projects, or participation in recognized acceleration programs.

Degree of scalability: They assess your business's potential for rapid growth without proportional cost increases. Criteria include potential market size (real growth opportunity), recurring or highly replicable revenue model, low marginal cost of acquiring new customers, barriers to entry that protect your competitive position, technology that enables automation and scalability, geographic expansion capacity, and level of dependence on key suppliers or customers.

Step 5: Resolution and certification
 If ENISA determines that you meet all the requirements, it will issue the official startup certificate. This certificate is sent directly to the Mercantile Registry, where it is officially recorded. From that moment on, you have automatic access to all the tax and social benefits under the law without needing to complete any additional procedures with the Tax Agency or other government agencies.

If your application is denied, you have the right to appeal and provide additional documentation. You can also reapply for certification later after making improvements to your project.

Validity and renewal period:
 The certification is valid as long as you continue to meet the requirements, up to a maximum period that corresponds to the permitted duration (5 or 7 years depending on your sector). ENISA may review compliance at any time and requires notification of relevant changes to verify that you continue to meet the conditions. If you cease to meet any of the requirements (exceed €10 million in revenue, distribute dividends, or are acquired by a non-certified company), the certification is automatically revoked.

Specific tax benefits: how much you actually save

The tax incentives offered by the Startup Law aren't just symbolic; they're substantial and can represent tens of thousands of euros in savings during the first few years of your project. Let's break them down with real numbers so you can see the direct impact on your bottom line.

Reduction of Corporate Income Tax from 25% to 15%

One of the main tax incentives of the Start-up Law is the application of a reduced rate of 15 % in Corporation Tax, compared to the general rate of 25 %.

This reduced type It is not applied automatically or from the first activity exercise, but is subject to two essential conditions:

  • That the company has the status of emerging company certified by ENISA at the time of applying the incentive. 
  • That the current fiscal year positive taxable base, That is, that the company obtains tax benefits. 

The 15 % type applies during the the first four tax years in which the taxable base is positive, provided that the company maintains its status as an emerging company in accordance with Law 28/2022.

This means that if a startup takes several years to become profitable, the tax benefit is not lost: It begins to be applied from the first profitable exercise., regardless of previous years with losses.

The reduced rate is applied by self-assessment in Corporation Tax, without prejudice to the powers of verification and regularization of the Tax Agency.

Deferral of tax debts without interest

Startups can request a deferral of tax debt payments corresponding to the first two tax periods where the taxable base for Corporation Tax is positive. This deferral is granted without the need to provide guarantees and without accrual of late payment interest during the first 12 months.

This measure eases cash flow pressure during critical times. You can defer tax payments when you most need liquidity to grow, without incurring additional interest penalties.

Exemption from installment payments

Companies typically have to make estimated corporate income tax payments throughout the year. Certified startups are exempt from this obligation for the first two years with a positive tax base. This simplifies tax management and prevents you from having to pay the tax authorities in advance before the end of the fiscal year and knowing your actual results.

Practical example of overall savings:

Imagine a startup that in its third year of life (first profitable year) obtains €150,000 of taxable income:

  • Savings due to reduced rate: (€150,000 × 10%) = €15,000
  • Savings through interest-free deferral: an additional €22,500 of liquidity for 12 months (equivalent to an interest-free loan)
  • Savings on installment payments: you don't have to make the three quarterly payments in advance, you preserve your cash flow.

Total competitive advantage: over €15,000 in direct savings + substantial improvement in liquidity.

Benefits for investors: incentives that attract capital

The Startup Law focuses not only on companies but also on the people who invest in them. The incentives for investors aim to mobilize private capital toward the entrepreneurial ecosystem.

Deduction of 50% in Personal Income Tax for investment in startups

Individual investors who invest in certified startups can directly deduct the amount from their personal income tax return. 50% of the investment made, with a maximum deduction base of €100,000 per year.

This means that if you invest €100,000 in a certified startup, you can deduct €50,000 from your income tax. It's a fantastic incentive for business angels and high-net-worth individuals who want to support innovative entrepreneurship.

Requirements to benefit:

The investment must be made at the time of incorporation or through subsequent capital increases. The startup must be a private limited company (SL or SA) not listed on the stock exchange. It cannot have equity exceeding €400,000 at the beginning of the tax period. And the investor must maintain the acquired stake for at least three years.

Practical example:

An investor with an income tax rate of €15,000 invests €80,000 in a certified startup.

  • Tax deduction: €80,000 × 50% = €40,000
  • Since your income tax liability is only €15,000, apply the full €15,000.
  • Result: the investor does not pay income tax that year and the net real investment has been €65,000 (€80,000 - €15,000 saved)

If the investor had a higher share, they could take advantage of the full deduction of €40,000.

Exemption from capital gains tax for reinvestment

If an investor sells their stake in a startup and makes a profit, they can defer taxation by reinvesting that money in another certified startup within a specified timeframe. This encourages serial investment and the circulation of capital within the entrepreneurial ecosystem.

Stock options: attracting talent without decapitalizing the startup

The Start-up Law has significantly improved the tax treatment of startups. stock options, a key tool for attracting and retaining talent in startups that cannot compete on salary with large corporations.

However, it is worth clarifying that The favorable tax treatment of stock options is neither automatic nor unlimited, This requires careful design of compensation plans and compliance with the requirements established in tax regulations.

The main tax advantages are:

  • Tax exemption of up to €50,000 per year, provided that the legal conditions are met. 
  • Deferral of taxation until the effective transfer of the shares, avoiding taxation on a theoretical value without liquidity. 
  • Greater flexibility in the design of plans, without the obligation to offer the same conditions to all employees. 

To take advantage of these benefits, the following requirements must be met, among others:

  • That the company is certified as an emerging company. 
  • That the shares or stakes are delivered within the framework of a employment or statutory relationship. 
  • That they be respected quantitative limits, the vesting periods and the conditions provided for in the IRPF regulations. 

For this reason, it is highly recommended to have specialized tax advice to properly structure stock option plans and avoid future tax contingencies.

Special regime for expatriates: attracting international talent

Spain has greatly facilitated the arrival of foreign entrepreneurs, investors and highly qualified professionals through the extension and improvement of the special regime for expatriates, popularly known as the "Beckham Law".

Reduced taxation at 24% on income up to €600,000

Foreign entrepreneurs who move their tax residence to Spain to found or participate in a startup, foreign investors who invest in Spanish startups, highly qualified workers hired by startups, and digital nomads who work remotely from Spain, can benefit from a special tax regime.

Instead of paying Spanish income tax at progressive rates that can exceed 451%, they pay a fixed rate of 24% on your worldwide income up to €600,000 annual. This benefit applies during the year of the change of residence plus the five years later (six years in total).

Simplified requirements:

The prerequisite has been significantly relaxed. Previously, you had to prove that you had not been a tax resident in Spain during the previous 10 years. Now, it is enough to not having resided in the last 5 years.

It is not necessary to obtain the NIE (Foreigner Identification Number) for non-resident investors, only the NIF (Tax Identification Number), which greatly simplifies the procedures.

Specific visas for startups

The law provides for streamlined and specific procedures for granting visas to:

  • Entrepreneurs: People who want to found an innovative startup in Spain
  • Investors: People who are going to invest significant capital in Spanish startups
  • Highly qualified professionals: Technically or executively skilled workers for certified startups
  • Digital nomads: Teleworkers providing services to foreign companies from Spain

Processing times have been drastically reduced and requirements are adapted to the real needs of the entrepreneurial ecosystem, not to traditional immigration criteria.

Practical example:

An Argentinian senior developer receives an offer from a Spanish startup:

  • Gross salary: €80,000/year
  • Without a special regime: it would be taxed at approximately 37-40% effective (progressive IRPF) = €29,600-€32,000 in taxes
  • Under special regime: taxed at 24% = €19,200 in taxes
  • Tax savings: €10,400-€12,800 annually for six years

This saving makes the proposal to come to Spain much more attractive, and the startup can offer competitive packages without proportionally increasing their cost.

Serial entrepreneurship: fail and try again

One of the improvements introduced during the parliamentary process of the law was the explicit recognition of serial entrepreneurship. Founders who have participated in previous startups can benefit from the incentives again in new projects without limit.

This means that if your first startup doesn't work out, you can shut it down, learn from your mistakes, and launch a second, third, or fourth project, benefiting each time from the tax advantages, as long as each new company meets the certification requirements on its own.

Spain does not penalize entrepreneurial failure. On the contrary, it recognizes that entrepreneurs with prior experience (even if they failed) are more valuable to the ecosystem because they contribute knowledge, networks, and business maturity.

Important condition: Each new project must individually meet all the requirements. You cannot create a chain of shell companies simply to benefit from the advantages. The innovation, scalability, and viability of each project will be independently assessed by ENISA.

Common mistakes that can cost you your certification

Obtaining ENISA certification is not automatic. Many startups have their applications rejected or subsequently lose certification due to avoidable mistakes.

Error 1: Requesting certification too early

Some companies apply for certification when they barely have an MVP (minimum viable product) and cannot adequately demonstrate its innovative or scalable nature. It's better to wait until you have solid evidence: first customers, traction metrics, investment received, pending patents, and technical certifications.

Error 2: Not adequately documenting the innovation

Saying "my project is innovative" is not enough. ENISA needs proof: R&D expenditures representing at least 151% of your budget, protected industrial property, innovation certifications, public funding received for innovative projects, or a very solid technical description of why your solution is truly novel compared to the state of the art.

Error 3: Business model that is not very scalable

A business that needs to hire proportionally more staff for each new client is not scalable. A restaurant, a traditional consulting firm, or a personalized services company will hardly achieve certification. Scalability implies exponential revenue growth while costs grow linearly or less.

Error 4: Exceeding the billing limit without notification

If your startup is successful and exceeds €10 million in annual revenue, you automatically lose your startup status. You must notify ENISA immediately. If you continue to claim tax benefits after you no longer meet the requirements, the Spanish Tax Agency may impose penalties and late payment interest.

Error 5: Distributing dividends or listing on the stock exchange

While you're certified as a startup, you can't distribute profits to partners. Everything must be reinvested in growth. You also can't go public. If you do, you'll lose your certification and any associated tax benefits.

Error 6: Failure to maintain the 60% template in Spain

If, due to international expansion, you reduce your Spanish workforce to below 601% of the total, you will no longer meet the requirements. This is especially relevant if you open offices in other countries and hire extensively outside of Spain.

Error 7: Activity change not reported

If your startup pivots significantly and changes its main activity, business model or sector, you must notify ENISA so they can reassess whether you still meet the innovation and scalability requirement in the new activity.

Administrative simplification: create your company in one step

Beyond the tax benefits, the Startup Law introduced significant improvements in the procedures for setting up companies that benefit all entrepreneurs, whether or not they are certified as a startup.

Online incorporation without notary or registration fees

You can set up a limited liability company (SL) entirely online, without needing to physically go to a notary or the commercial registry. Notary and registry fees are subsidized under form 100%, meaning they are free.

The process is done in a single step: you obtain a provisional tax identification number (NIF) and can start operating immediately while the registration procedures are completed later.

Foreign investors do not have a NIE requirement

Non-resident investors in Spain no longer need to obtain a Foreigner Identification Number (NIE), which was a slow and bureaucratic process. A Tax Identification Number (NIF) is sufficient for them to participate in the capital of Spanish startups.

This simplification has significantly accelerated the entry of foreign investment, especially from business angels and international funds that previously faced weeks of waiting for paperwork.

ILCOWORKING: your ally in launching your startup

Launching a startup isn't just about having a good idea and knowing about tax incentives. You need an environment that fosters your productivity, facilitates networking with other entrepreneurs and investors, and provides professional services without tying you down to high fixed costs.

In ILCOWORKING, Strategically located in Glorieta de Bilbao (Chamberí, Madrid), we fully understand the specific needs of startups at their different stages of development. Our coworking spaces, private offices, and meeting rooms are designed for agile teams that require flexibility, professionalism, and quality services at prices tailored to tight budgets.

But beyond the physical space, at ILCOWORKING we connect you with a vibrant entrepreneurial ecosystem. We regularly work with certified startups, companies in the process of applying for ENISA certification, and entrepreneurs in the idea validation phase.

Through our collaboration with Acountax Madrid, We make available to you legal, tax and accounting advisory services Specializing in startups. We can help you with:

  • Advice on whether your project meets the requirements to be certified as a startup
  • Preparation of documentation for the ENISA certification application
  • Tax planning to maximize the benefits of the Startup Act
  • Incorporate your company with the simplified procedures of the law
  • Accounting and tax management adapted to the specific needs of emerging companies
  • Employment contracts, stock option plans and other legal aspects for startups

Our flexible coworking plans (from hourly workstations to monthly private offices) allow you to start with the bare minimum and scale as your team grows, without eternal commitments or initial investments in furniture or equipment.

Many of the startups currently occupying spaces at ILCOWORKING have grown from teams of 2-3 founders working at shared tables to teams of 8-10 people in private offices. This flexibility to grow seamlessly is exactly what a startup in its traction phase needs.

Success stories: startups that took advantage of the law

Since the Startup Law came into effect, thousands of companies have obtained ENISA certification and are reaping its benefits. Although for confidentiality reasons we cannot share specific names without authorization, the aggregate data is compelling.

According to ENISA, more than 10,000 certification applications have been received since 2023. Of these, approximately 70% have been approved, meaning more than 7,000 certified startups are operating with tax advantages.

The multiplier effect on employment is significant: an estimated 150,000 jobs are linked to certified startups, most of them highly skilled and with salaries above the national average.

Investment in Spanish startups continues to grow. Spanish and foreign business angels are taking advantage of the 50% tax deductions in personal income tax, which has mobilized hundreds of millions of euros of additional private capital into the entrepreneurial ecosystem.

In sectors such as fintech, healthtech, edtech, renewable energy, artificial intelligence and biotechnology, Spain is gaining ground as a leading European hub, attracting international talent and capturing venture capital funds that previously went exclusively to Berlin, London or Paris.

Frequently Asked Questions about the Startup Law

Can I apply for certification if I am self-employed?
 No. Only commercial companies (public or private limited companies) and cooperatives can be certified. If you are self-employed and your project meets the innovation and scalability requirements, you should form a company to benefit from the Startup Law.

How much does it cost to obtain ENISA certification?
 The certification process is completely free. ENISA does not charge any fees or charges. You can do it yourself or hire professional advisory services to increase your chances of success, but the official procedure itself is free.

How long does it take ENISA to process the request?
 The maximum processing time is 3 months from the date you submit your complete application. In practice, if your documentation is well prepared and ENISA doesn't need to request clarification, you can expect a response in 6-8 weeks. If additional information is required, the processing time will be longer.

What happens if ENISA denies my application?
 You can submit arguments and additional documentation. If the denial persists, you can request a reconsideration by providing new evidence. You can also resubmit the application later after addressing the issues that led to the rejection. There is no limit to the number of attempts.

Is the certification renewed automatically?
 No. ENISA conducts annual reviews to verify that you continue to meet the requirements. You must notify us of any relevant changes in your company (exceeding revenue thresholds, changes in business activity, dividend distribution) because they could affect your startup status.

Can I get certified and work from home?
 Yes. There is no obligation to have a physical office, although you must have a registered business address in Spain. Many digital startups operate entirely remotely and are certified. Employees on the payroll must have employment contracts in Spain, but that doesn't mean they need to be physically present in an office.

Are the tax benefits applied automatically?
 Yes. Once certified by ENISA, the Commercial Registry will add this status to your registration record, and all government agencies (Tax Office, Social Security, local councils) must automatically recognize your entitlement to the benefits. You don't need to do anything else with the Tax Office; simply apply the reduced rate of form 15% when you file your Corporate Income Tax return.

Can I lose my certification before the 5-year mark?
 Yes, if you cease to meet any of the requirements: exceeding €10 million in revenue, distributing dividends, going public, reducing your workforce in Spain below 601,000, being acquired by a non-certified company, or carrying out activities harmful to the environment. In case of non-compliance, you lose your certification immediately and are no longer eligible for tax benefits.

Do I need to hire professional advice for the process?
 It's not mandatory, but it's highly recommended if your project has a certain level of technical complexity or if you lack prior experience with certification processes. A good consultant can help you present your project in the most favorable light, prepare the optimal documentation, and significantly increase your chances of success.

Is the Startup Law in force in 2026?
 Yes, Law 28/2022 is fully in force in 2026 and forms part of the Digital Spain 2026 Agenda. There is no planned expiration date. It is a stable framework designed to be maintained long-term and position Spain as a leading entrepreneurial hub.

 

Does your startup meet the requirements for certification?

At ILCOWORKING, we help you take the first steps with professional advice and flexible spaces adapted to your growth stage. From our facilities in Glorieta de Bilbao, in the heart of Madrid, hundreds of entrepreneurs are building the businesses of the future.

Come explore our spaces, connect with other founders, and discover how we can support you in launching your project. Your next unicorn could start in a coworking space.

Contact us And we'll advise you without obligation on the Startup Law and how ILCOWORKING can be your base of operations.

Links to official sources: