🇪🇸

Spain

Name: Spain Startup Jurisdiction Scores
Creator: NomadSignal

#13 of 23Worldwide47%

Europe · Madrid · EUR

Major European hub with a new digital nomad visa and the Beckham Law tax regime offering a flat 24% rate for new residents. Barcelona and Madrid have strong startup ecosystems.

Overall Score

Tax32

Funding100

Visa90

Residency43

Tax Res.45

Practical96

Remote64

Family95

Ecosystem60

Madrid

Dimension Profile

Tax Warning

Worldwide47%

Tax residency is triggered at 183 days of presence per year.
Spain taxes worldwide income - all global earnings are taxable once you are a resident. Top personal income tax rate: 47%.
Beckham Law (Impatriate Regime) provides a reduced 24% flat rate for qualifying new residents.
Exit tax applies when leaving: Exit tax applies on unrealized gains in shares exceeding EUR 4M or when shareholding exceeds 25% in companies with assets over EUR 1M on departure from Spain.
Controlled Foreign Corporation (CFC) rules are in effect. Foreign company ownership may trigger local tax obligations even on undistributed profits.
Self-employed social security contributions: 30% (capped at $57,000/yr).
Spain participates in the Common Reporting Standard (CRS). Financial accounts are automatically reported to your home country tax authority.
Foreign asset reporting is required. Residents must declare foreign bank accounts and assets to local tax authorities.

Not tax advice. Consult a qualified tax professional before establishing residency.

Dimension Breakdown

Corporate Tax Rate: 25%
Capital Gains Rate: 28%
Territorial System: No
IP Box Regime: No
Tax Treaties: 96
VAT Rate: 21%
Dividend Withholding: 19%
Holding Company Viable: Yes
Notes: Spain has a ETVE (holding company) regime for international dividends exemption. R&D tax credits up to 42% available. IP income can benefit from a 60% reduction making effective rate on qualifying IP ~10%.

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