On 19 September, the Law on Support of Entrepreneurs was definitively adopted. This project, which can be considered as one with a strong media impact, reviews all current legislation related to entrepreneurship, and develops the regulations in force in a broader framework, ranging from the subjects taught in Primary School to the visa regimes on aliens.
It is particularly interesting to highlight the following aspects:
Regarding VAT: from the date of entry into force of the aforesaid Law, the SMEs and freelancers will have the possibility to pay the input VAT once the invoices have been collected and not before that moment, and as long as their turnover is below Euro 2,000,000, will.
- Entrepreneur Limited Liability: The entrepreneur in debt shall not be liable with its residential property for the obligations incurred.
- Alternatives to bankruptcy: a debt workout process is established, with more advantages than the bankruptcy as long as the debt amounts to less than Euro 5,000,000.
- Deductions for reinvestment of profits: a deduction of 10% on the Corporate Income Tax (Impuesto sobre Sociedades) is introduced in the event of a reinvestment of profits, in those projects with duration of more than five years.
- Personal Income Tax (Impuesto sobre la Renta de las Personas Físicas) deduction: Individuals who decide to invest in new companies or newly incorporated companies may deduct up to Euro 4,000 in its corresponding Personal Income Tax return.
- Right to obtain a residence permit: Foreigners who acquire a property with a minimum value of Euro 500,000 or buy government debt for a minimum of Euro 2,000,000 will be entitled to obtain a two-year initial residence permit.
- Express licenses: the ongoing reform extends the express licenses to 500 square metres.
- ICEX: a “one stop shop” of the ICEX is created in order to support the SMEs wishing to step into foreign markets.