As for the “Law on the development of the startup ecosystem,” which came into effect on January 1, 2023, citizens of “third countries” who are founders of new companies can obtain a special type of residency in Spain. Essentially, this is a type of residence permit for entrepreneurs (residencia para emprendedores), which was introduced in 2013 but was intended for owners of innovative companies and enterprises.
The exact definition of a startup in the description of the conditions for obtaining this type of residence is not given, but in Spain, it is considered to be a newly created company or one that has been operating for no more than three years. It must be related to areas of activity that involve advanced technologies. In other words, startups opened from scratch such as bars, restaurants, or real estate agencies will not be considered.
Unlike some other non-European Union residency permits in Spain, where it is necessary to document one’s financial situation, in the case of residency for startup founders, the key document is a business plan. It should contain information about the applicant (education, work experience, position) and the future project (number of jobs, final product, investment volume and sources), including innovative aspects. The business plan may be presented in English, and its volume should be no less than 20 and no more than 60 pages. The more real benefits the project can bring to the Spanish economy or contribute to scientific and technological progress, the higher its chances of approval.
In addition to this, applicants for such residency must confirm their work experience in the field in which the startup will be engaged and demonstrate the availability of sufficient funds in their bank account – from 8400 euros for the main applicant and 50% of this amount for each family member.
The application may include a spouse, children, and dependent parents. All of them are granted a residence permit in Spain for a period of three years with the right to work, regardless of the company or organization. After this time, the residence permit can be extended for another two years if all conditions are met, and the company continues to operate successfully.
The aforementioned documents must be accompanied by an application according to the established template, copies of all pages of the passport, a certificate of no criminal record with a translation by a sworn translator, Spanish health insurance, marriage certificates, and birth certificates of children (also translated), and proof of payment of the fee 790-038.
The submission of documents is done remotely in Spain through the website of the Ministry of Social Security and Migration Integration, for which a digital signature is required, which, in turn, is issued based on the NIE. If it is not available, it is necessary to prepare a power of attorney for submission, which is also among the required documents.
The process of requesting and obtaining startup residency may seem quite complex with a significant number of legal nuances. Our team of professionals at Lusa Legal will be happy to assist you at any stage of obtaining startup residency. Contact us today with any questions you may have: +34 661 80 08 99 (WhatsApp)