New legal rules brought in by the “Entrepreneur’s Act”
Although announced repeatedly in the present government’s electoral programme, Law 14/2013, of 27 September, on support for entrepreneurs and their internationalisation, commonly known as the “Entrepreneur’s Act”, came into force on Monday 30 September to bring in new legal rules.
Those that we think may be of interest to you are summarised below:
- · Residency visa for foreign investors: Foreign investors are granted a residency visa. What does the law take the term foreign investor to mean? Any individual who satisfies any of the following conditions:
- o Obtaining clear title to a dwelling in Spanish territory worth more than 500,000 euros, or
- o Intending to carry out a business project deemed to be in the national interest (by creating jobs for Spanish workers, for example), or
- o Investing 2 million euros or more in Spanish sovereign debt, or shares and/or holdings in Spanish companies.
If you are considering the possibility of making an investment of this kind, we would like to remind you that from Estudi Jurídic Sanchez & De Canals we can advise you on any transaction that you may be considering, anywhere in the country.
- · Amendment to the system for the payment of VAT: Without doubt,one of the measures most heralded by the government: Self-employed business owners and SMEs will be able to postpone payment of VAT until the relevant invoice has been duly paid. However, this measure will apply from January 2014 and only provided that certain requirements established for the purpose are met.
- · “Zero” price incorporation: The new law introduces the category of the successive formation limited liability company (Sociedad Limitada de Formación Sucesiva),which although fairly similar to the traditional limited liability company (Sociedad de Responsabilidad Limitada), differs from it largely with regard to how the distribution of dividends and shareholder salaries are regulated. Bear in mind that with this kind of company, the share capital may be less than the 3,000 euros legally required to date, provided that the relevant requirements established by the law are met.
- · Assistance for entrepreneurs: The law introduces two interesting changes with regard to entrepreneurs. Firstly, it limits personal liability for debts incurred in the course of their business, thereby protecting the personal assets of entrepreneurs who opt for the “limited liability entrepreneurs” regime. Secondly, it establishes a reduction in the payment of the relevant social security contributions for newly self-employed individuals (removing the age restriction that existed until now) of 80% during the first six months, 50% during the following six months and 30% during the final six months of the reduction.
Also, among other aspects brought in by the law, bureaucracy involved in hiring foreign personal is removed, encouraging the importation of international talent, and the intention to promote entrepreneurial culture from the classroom is established legislatively.
While waiting to see how the legislative changes introduced materialise, please do no hesitate to contact us with any questions or queries, if you think that any of the aspects mentioned may be of interest to you.
Published by Andrea Serrano
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