Spain has introduced a groundbreaking Startup Law (Ley de Startups) – officially Law 28/2022 – that took effect in early 2023. This new law is designed to attract international entrepreneurs, digital nomads, and remote workers by offering a mix of special visas, tax breaks, and streamlined business processes. In essence, Spain wants to become a top hub for innovative startups and global talent, and it’s pulling out all the stops to make life easier for people who want to launch their projects or work remotely from its sunny shores.
Below, we’ll break down the key benefits of the Startup Law – from the new Digital Nomad Visa to generous tax incentives – and see how it all ties into a remote-friendly lifestyle (especially in vibrant cities like Valencia).
Spain Digital Nomad Visa Requirements & Path to Residency
One of the headline features of the Startup Law is the creation of a Spanish Digital Nomad Visa. For non-EU remote workers and entrepreneurs, this visa is essentially a welcome mat to come live and work in Spain. It lets you stay in the country for up to one year, with the option to convert it into a longer-term residency permit. In fact, once you have the initial visa, you can extend your stay up to five years in total (1 year + a renewable 3-year permit + another 2-year renewal) if you continue to meet the conditions. After five years, you’re even eligible to apply for permanent residency – not too shabby for a «nomad» who might start out just testing the waters in Spain!
This digital nomad visa was a game-changer because before 2023 there wasn’t a clear long-term visa route for remote workers. Now, Spain has opened the gates for remote workers who want to set up base here. To qualify, you generally need to prove you have a remote job (or freelance clients) based outside Spain, meet an income threshold, and have been working remotely for some time, among other requirements. Essentially, Spain is saying: if you have a job you can do from anywhere, why not do it from here? Enjoy our Mediterranean lifestyle, and contribute to our economy while you’re at it. The visa creation shows how serious Spain is about embracing the remote work revolution and making itself a top choice for digital nomads.
Startup Law Spain Tax Benefits: Corporate Tax & Founder Incentives
Beyond visas, the Ley de Startups is packed with tax incentives to sweeten the deal for entrepreneurs, investors, and even foreign professionals coming to Spain. These incentives not only make life easier on your wallet but also boost Spain’s attractiveness in the European startup scene. Here are some of the key tax perks:
Beckham Law Spain: Flat 24% Tax for Remote Workers
The law expanded access to Spain’s famous «Beckham Law» – a special tax regime for new residents. Qualifying entrepreneurs or remote employees can elect to be taxed as non-residents, which means a flat 24% income tax on Spanish earnings (up to €600k) and no Spanish tax on your foreign income. This is a huge draw for high-earning internationals. Originally, the Beckham Law was mostly for corporate hires, but now certain remote workers and startup founders can benefit under the 2023 updates.
Reduced 15% Corporate Tax for Startups (4-Year Relief)
If you launch a startup in Spain, you get a break on company taxes. New startups pay only 15% corporate tax (vs the standard 25%) on profits. This reduced rate applies for the first tax period in which the company achieves a positive taxable base (i.e., makes a profit) and for the following three tax periods, provided the company still qualifies as a «startup» under the law.
On top of that, startups can defer tax payments in the first two years of profit without interest or penalties.
Startup Employee Stock Option Tax Exemption (€50,000)
To help startups attract talent, the law improves the tax treatment of employee stock options. The tax-exempt threshold for stock options was raised from €12,000 to €50,000 per year. In plain English, if you work at a startup and get part of your compensation in stock, you can now receive a much larger chunk without paying income tax on it (as long as certain conditions are met).
Investor Tax Deductions
Investors aren’t left out either. To encourage funding of new ventures, Spain now offers juicier tax deductions for those who invest in startups. The annual deduction limit for investing in new startups doubled from €60,000 to €100,000, and the deduction rate jumped to 50% of the investment. Such a generous deduction puts Spain on the map for venture capital and angel investment.
All these measures – from the expat tax regime to startup tax cuts – are about making Spain a magnet for innovation and talent. By lightening the tax load, the government is signaling that they want you here, building your project, creating jobs, and joining the entrepreneurial ecosystem.
Why Digital Nomads Are Moving to Valencia
The spirit of the Startup Law isn’t just about legal fine print – it’s about making Spain a welcoming place for international talent and a modern work-life. By offering these visas and incentives, Spain is boosting its appeal and competitiveness in the EU as a destination where you can both build a company and enjoy a great quality of life.
Nowhere is this more evident than in cities like Valencia, which has quickly become a hotspot for digital nomads and remote entrepreneurs. Valencia offers a rare mix of lifestyle perks and business opportunities: over 300 sunny days a year, beautiful beaches, a lower cost of living than Madrid or Barcelona, and a growing tech ecosystem.
In fact, in 2024 over 27% of startup founders in the Valencia region were foreign-born, showing how international the scene has become. English is widely spoken in coworking spaces, and there are local organizations like Startup Valencia that help newcomers with visas, community, and events.
Remote professionals often choose coworking spaces to get work done and meet others, and Valencia delivers. The city’s innovation district (La Marina) is being redeveloped to house incubators and coworking hubs just steps from the sea. Compared to other European hubs, Valencia’s coworking costs are very reasonable, and you get great infrastructure: fiber internet, comfy work areas, and an open, collaborative community.
This is one of the reasons remote teams are now basing themselves partly in Valencia: the city offers great internet, affordable coworking, lots of tech meetups, and a lifestyle that balances work with paella, paddleboarding, and late sunsets.
So… TL;DR
Spain’s new Startup Law is a big step forward for digital nomads, freelancers, and remote entrepreneurs. It introduced a Digital Nomad Visa that lets you live and work in Spain legally for up to five years, with a clear path to permanent residency.
There are major tax advantages too: a flat 24% income tax for foreign workers under the Beckham Law, a reduced 15% corporate tax for new startups, better treatment of stock options, and generous deductions for investors.
Starting a company in Spain is now much simpler-you can set everything up online with minimal paperwork and lower fees. As long as your business is innovative and meets the criteria, you can get certified through ENISA and unlock all the benefits.
International Coworking Valencia – The place for entrepreneurs
Valencia is one of the best places to take advantage of it all. It’s affordable, international, full of coworking spaces, and has a growing startup scene-all with beach access and 300+ days of sun a year. If you’re thinking about moving your remote life to Spain, now’s the time. And if Valencia’s on your list, come say hi-we’d love to welcome you at International Coworking Valencia. You’ll find not just a workspace with fast Wi-Fi, but a friendly network of like-minded remote workers and entrepreneurs who can help you navigate the journey.
Come for the benefits, stay for the sunsets. Spain has rolled out the welcome mat for digital nomads and remote entrepreneurs – and Valencia is ready for you.