Modifications introduced in Law 14/2013 on support for entrepreneurs and their internationalisation, by the new Law on the promotion of the start-up ecosystem

In Madrid on 12 December 2022

The new Law for the promotion of the start-up ecosystem has modified part of the regulation of Law 14/2013 on support for entrepreneurs and their internationalisation, both with the creation of a new case, and with the modification of some of the common characteristics of the authorisations regulated in this law.

• New case of obtaining a visa and/or residence authorisation for international teleworkers, under a new Chapter V Bis.

1. Definition:

This situation applies to the person concerned, authorised to reside in Spain, who carries out an employment or professional activity at a distance for foreign companies, using computer, telematic and telecommunication means and systems.

To benefit from this status, you must be a graduate or postgraduate from a university or business school of recognised prestige, have professional training or have at least three years’ professional experience.

1. Requirements specific to this authorisation:

• Proof of the existence of a real and continuous activity for at least one year of the company with which the professional has an employment or professional relationship.
• Existence of the employment or professional relationship for at least three months prior to the application.
• And accreditation of being able to carry out the activity remotely.

1. Visa:

The visa will have a maximum duration of one year, constituting sufficient title to reside and work remotely in Spain during its validity. When it expires, the interested parties may apply for a residence permit 60 days before the expiry date.

1. Residence permit:

Provided that the interested parties are in Spain in a regular situation, they can apply for this authorisation from here.

It shall be valid for a maximum of three years and may be renewed for two-year periods.

• General requirements are amended.
• Only a criminal record certificate will be required from the country or countries where the applicant has resided in the two years prior to his/her application for residence, and he/she must also provide a declaration that he/she has not been convicted of any criminal offence during the last five years.
• Residence for the authorisations provided for in Law 14/2013 shall have an initial duration of three years.
• The passport will be sufficient proof of registration with the Social Security for the first six months of residence or stay, without prejudice to applying for the NIE at a later date.
• Chapter III on entrepreneurs and business activity is amended.

1. Duration and application:

The duration of the initial residence permit for entrepreneurs is now three years, renewable for a further two years, until permanent residence of five years is achieved.

The application will be made electronically to the UGE and, when the interested party is outside Spain, a single application will initiate both, the authorisation and visa procedures.

1. Definition of entrepreneurial and business activity:

An entrepreneurial activity will be understood as one that is innovative or of special economic interest for Spain and whose model is scalable. A favourable report issued by ENISA will be required in all cases.

This report will analyse the degree of innovation, taking into account:

• Have received public funding in the last three years, without revocation.
• Expenditure on research, development and technological innovation.
• Degree of attractiveness of the market, with recruitment strategies.
• Life phase of the company: Implementation of prototypes and obtaining a minimum viable product, or start-up of the service.
• Competition. Competing companies and differentiation.
• Dependence on suppliers, or rental contracts, as well as relations with other economic operators.

In addition, for the assessment of entrepreneurial activity, the following will be taken into account:

• The professional profile of the applicant and his/her involvement in the project, as well as that of the rest of the team.
• The business plan with the description of the project, the financing and the investment required.

 

• Chapter IV on highly qualified professionals is amended.

The cases of highly qualified professional are modified and become:

• Graduates or postgraduates from universities and business schools of recognised prestige.
• Advanced vocational training graduates.
• Specialists with at least three years’ comparable professional experience.

The residence authorisation for highly qualified professionals shall be for three years, unless the contract is for a shorter period, in which case it shall be for the duration of the contract.

 

• Extension of the job search period for graduates.

The residence permit for graduates seeking employment is changed to a non-extendable duration of 24 months.

• Modification of the residence permit for traineeships.

If applied for on the basis of an employment contract for professional practice, the duration of this authorisation may not exceed 12 months.

• Creation of a working group to draw up instructions on these modifications.

A deadline of 31 March 2023 is set for drawing up instructions on the authorisations regulated herein.

• Issuance of foreigner identification numbers (NIE).

A specific system will be set up so that interested parties who are beneficiaries of these authorisations can obtain a NIE number.

We remain at your disposal for any questions you may have.

Yours sincerely,

ECIJA’s Employment and Immigration Department

info@ecija.com

Telf: + 34 91.781.61.60