Tax Opportunities for Startups: How to Leverage the Startup Law Incentives

 Spain’s Startup Law has transformed the tax framework for emerging companies. At Adlanter, we’ve prepared a practical guide to help you apply these incentives safely, attracting investment, talent, and sustainable growth to your innovative business.

Since the implementation of Law 28/2022 — widely known as the Startup Law — Spain has taken a decisive step toward fostering a competitive and innovation-friendly business environment. This legislation introduces key tax and administrative incentives that make Spain an attractive destination for entrepreneurs. At Adlanter, we’ve compiled a practical guide outlining the main benefits available to startups, investors, and advisors in 2025.

Key tax incentives included in the Startup Law

The law offers several measures designed to ease the tax burden on early-stage companies, support talent acquisition, and stimulate private investment. Here are the most notable:

• Reduced 15% Corporate Income Tax rate for the first four years with a positive tax base, provided the company retains its “startup” status.

• Deferred payment of Corporate Tax during the first two profitable years, with no interest or guarantees, and exemption from installment payments in the following year.

• 50% Personal Income Tax deduction for investors, with a maximum base of €100,000 — a powerful tool to attract national and international private capital.

• Improved tax treatment of stock options, including an IRPF exemption of up to €50,000 per year and deferral of taxation on the excess until shares are sold — aligning employee motivation with company success.

• R&D+i tax credits, particularly relevant for tech startups, enabling tax reductions based on expenses linked to innovative projects.

Additional administrative advantages and business-friendly environment

Beyond tax savings, the Startup Law includes measures to simplify business creation and management:

• Lower notarial and registration costs when using standard articles of association.

• Faster processing times for company formation.

• A digital one-stop shop for centralizing startup recognition procedures and reducing bureaucracy.