The Government will give its own legal framework to start-ups

The Government will give its own legal framework to start-ups

Sanchez announces new fiscal incentives in the 2019 budgets so that emerging companies attract more investment and technology

  Emerging companies, those that begin their journey with few means and normally associated with innovation, will have their own legal framework in Spain since 2019. This was announced on Friday by the President of the Government, Pedro Sánchez, at the same time that he promised them more tax incentives.

During the closure of the South Summit, considered "the most important event of entrepreneurship and start-ups in the world" -according to Sanchez who told him a few days ago the president of the Davos Forum-, the chief executive announced three blocks of measures to strengthen these pioneer companies. With them he seeks that "Spain does not lose the pulse of the digital economy" and that the Public Administrations "are up to the talent" of these companies so that they see them more as "accomplices" than as "obstacles".

  These changes, which will be included in the draft of the State Budget for 2019, go in the first place by legally recognizing the "legal singularity" of the start-ups. To this end, tax incentives for investment in R & D & I will be "enhanced" in corporate tax, so that large companies consider them more as vehicles for innovation.

Also, as a novelty, "the transferability of the tax credits" generated by this type of activities (R + D + i) will be authorized to the companies that participate in the financing, the projects and the technology of the start-ups. What he did not specify is whether this transfer, a priori between companies, could also be extended to its shareholders.

The second block of action will be aimed at creating a "connected" network of accelerators and business incubators, that is, those that provide direct support for the development of start-ups. The goal, said Sanchez, is "to increase their number and improve their connectivity." Finally, forums and national and international investors in entrepreneurship will be strengthened.