Spanish Entrepreneur Visa

Do you have an innovative idea for a startup that you want to develop in Spain? Are you keen to get access to the Beckham law 24% tax rate even if it means investing time and financial resources into a big project? If the answer to these two questions is yes, the Spanish Entrepreneur Visa could be just what you need. 

What is the Entrepreneur Visa? 

Similar to the Digital Nomad Visa, the Entrepreneur Visa offers a 3-year residency (or a 1-year visa if applied for via a consulate) that permits you to live and work in Spain.

Both residency applications are managed by the UGE (Unidad de Grandes Empresas) and have fast-track processing of 20 working days, with positive administrative silence if no decision is made within this limit. After five years, individuals with either type of residency are eligible to apply for permanent residency and, eventually, Spanish citizenship.

That's where the similarities end. The Digital Nomad Visa involves working for a company outside Spain, keeping local jobs safe, while the Entrepreneur Visa is all about bringing innovation and economic boosts to the Spanish economy. Given the greater reward for Spain, it stands to reason that applicants can more easily obtain tax benefits.

How Easy is the Application? 

The process for obtaining Entrepreneur Visa is significantly more challenging than that of the Digital Nomad Visa.

The Digital Nomad Visa process is relatively straightforward: you need to show a contract and letter from a foreign company showing that you are earning the required income, along with bank statements and other evidence.

In contrast, the Entrepreneur Visa demands that you create a comprehensive business plan and provide proof of its viability.

The project that you propose to carry out in Spain MUST be innovative and/or provide significant economic impact to the country. This means that you will need to showcase your unique ideas, as well as demonstrate how your business will contribute to the Spanish economy.

What are the Main Requirements of the Entrepreneur Visa?

• A comprehensive business plan for an innovative project which could positively impact Spain's economy. 
• Savings of €31,752 for the founder, €11.907 for their spouse or partner and €3.969 for each child. 
• Relevant work experience in a related industry. 
• No criminal record in the country of residency in the past 5 years. 

The Steps Involved in the Application

1. Create a business plan, ensuring that it meets all of ENISA's criteria (outlined in detail below).
2. Arrive in Spain, get stamp in passport, then submit residency application to UGE, including an upload a screenshot of the ENISA submission as well as the other required documents.
3. Wait for up to 20 working days for the UGE's decision on residency, then wait a further 10 working days for ENISA to review the business plan and make a decision (this is the official limit but in practice, it is likely to take longer). 

Note: You can also apply for an Entrepreneur visa in the Spanish consulates, where you would be given a 1-year visa rather than a 3-year residency as you will get if you come to Spain to apply. 

What are ENISA´s Criteria? 

ENISA are looking to see innovation in one or more of the following areas:

• The business model.
• The product or service.
• Differentiated company processes.
• The use of own technology (e.g. patents).

It is crucial that you can back up any claims you make with evidence. Ideally you will have at least started developing a MVP and can show screenshots or even a video demonstration. 

They will also be looking for evidence of scaleability:

• Degree of market attractiveness: the supply and demand of the sector in which the project will operate. 
• The stage at which the project is at: there should already be prototypes, a MVP, or the service should already be on the market in order to test it. 
• The number of users, sales, revenue achieved, targets and objectives. 
• Existing competitors in the market, the degree of differentiation, the strengths and weaknesses of each competitor when compared to the project. 
• The management team, their background and experience.
• The founders and any external investors. 
• The suppliers and the dependence upon them. 
• The customers: who they are, where they are and whether there is sufficient diversification. 

Examples of ENISA-Approved Business Plans

• Pet vaccination record application
• A manufacturer of treatment plants for seafood 
• Ready-to-drink cocktails

(See more examples here.)

Ideas which wouldn't work

• Projects which lack novelty and innovation. 
• Anything which can be seen to have 'potential reputational, regulatory, ethical or speculative risks'. For example, projects related to gambling, CBD, crypto. 

How Does the Tax work? 

If your application is successful and you receive the prestigious ENISA seal, you can qualify for the famous Beckham Law, allowing you to pay a 24% flat-rate tax on your income from Spain. Under this regime, Spain will not tax your personal income generated from other countries or your worldwide assets.