News regarding the law on startups in law 14/2013, of September 27, 2013, to support entrepreneurs and their internationalization.

In the near future, the Spanish Parliament will approve the expected “Startups Law”. The aforementioned Law aims to “attract talent and investment through the creation of ecosystems favorable to the establishment of entrepreneurs or remote workers, known as ‘digital nomads’, to the creation and growth (scale up) of innovative, knowledge-based, digital-based and fast-growing companies, known as emerging companies or startups and to the attraction of investors specialized in the creation and growth of these companies, also known as ‘business angels’.”

As is logical, in order to achieve all the aforementioned objectives, it is necessary to carry out a profound, albeit necessary, reform of Spanish legislation. In particular, Law 14/2013, of September 27, on support for entrepreneurs and their internationalization will be modified for the benefit of all those who could already avail themselves of it and will expand the assumptions collected by it.

Next, we will see the most significant legislative changes that will come into force with the approval of the Startups Law:

  • The visa and residence authorization for international teleworking will be created. The new law will establish that a national of a third State, authorized to stay in Spain to exercise a labor or professional activity at a distance for companies located outside the national territory, by means of the exclusive use of a computer, telematic and telecommunication means and systems, is in a situation of residence for international teleworking. In the case of the exercise of a labor activity, the holder of the authorization by telework of international character will only be able to work for companies located outside the national territory. In the case of the exercise of a professional activity, the holder of the authorization by telework of international character will be allowed to work for a company located in Spain, provided that the percentage of such work does not exceed 20% of the total of its professional activity. Applicants must be qualified professionals who can prove to be graduates or postgraduates from prestigious universities, vocational training, and business schools of recognized prestige or with a minimum professional experience of three years. The visa for telework of international nature will have a maximum validity of one year unless the period of work is less. In the term of sixty calendar days before the expiration of the visa, these teleworkers will be able to request the authorization of residence for international teleworkers, as long as the conditions that generated the right are maintained. The validity of this authorization will have a maximum validity of three years unless it is requested for a shorter period of work. The holders of this authorization may request its renewal for periods of two years as long as the conditions that generated the right are maintained.
  • The validity of initial residence permits will be extended from two to three years.
  • The requirement to provide a criminal record certificate from all countries where the applicant has resided during the last five years will be eliminated. In its place, it will be necessary to prove that the applicant does not have a criminal record in Spain and in the countries where he/she has resided during the last two years, for crimes provided for in the Spanish legal system. Additionally, a responsible declaration of the non-existence of criminal records for the last 5 years must be presented.
  • In the case of the residence authorization for entrepreneurs, the application for authorization and visa will be made simultaneously through a single request that will initiate the processing of authorization and visa consecutively.
  • The duration of the residence authorization for job search will be extended. Once the studies have been completed in an institution of higher education, foreigners who have reached at least Level 6 according to the European Qualifications Framework, corresponding to the degree accreditation, may remain in Spain for a maximum non-extendable period of twenty-four months in order to look for a suitable job in relation to the level of the studies completed or to undertake a business project.
  • The period of validity of the residence authorization for internships will be of twelve months or equal to the duration of the internship agreement, if it is of a shorter duration. This authorization may be renewed only once, and the total period of the initial authorization and its extension may not exceed two years. In the case of an internship employment contract, the duration shall be the duration foreseen in the contract.
  • The passport will be allowed to be a sufficient supporting document to register with Social Security during the first six months of residence or stay in the categories regulated by Section 2.ª of Law 14/2013.
  • The method of evaluation of the necessary economic resources will be modified, being these referenced to the Minimum Interprofessional Wage (SMI), instead of the IPREM.
  • The issuance of the Foreigner Identity Number will be facilitated for applicants for residence authorizations granted under Law 14/2013 and persons who intend to carry out activities related to the objectives of this Law. For this purpose, a specific web page will be enabled for this group to request appointments online and various administrations and agencies will be available for the face-to-face issuance of Foreign Identification Numbers.

If you have any doubts in this regard, do not hesitate to contact Orience, who will advise you to obtain the residence authorization that best suits your personal and/or professional objectives.