Tax and funding support for new business founders and their investors

Automatic summary, not yet reviewed

1. The bill would define as an entrepreneur anyone starting an economic activity, either self-employed or through a company, and also companies less than five years old. Entities whose main activity is managing a securities or real estate portfolio would be excluded.
2. It would grant a 75% exemption in personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. or corporate tax during the first four years of activity. If annual revenue exceeds 200,000 euros, the exemption would apply proportionally.
3. It would allow unemployment benefit recipients to cash out 100% of their benefit in a lump sum if they become self-employed or partners in a new company.
4. It would create the figure of the proximity investor, who provides capital and advice to new projects, capped at 200,000 euros per company. Such investors would get a 25% deduction in personal income tax or corporate tax, plus other reductions and exemptions if they hold the investment for at least four years.
5. It would boost public funding: ENISA participating loans, microcredits with priority for women, young people and people with disabilities, guarantee programs with CERSA and mutual guarantee societies, and state-guaranteed securitization funds.
6. It would add rebates of 90%, 75% and 50% on social security contributions for the self-employed and for hiring unemployed workers during the first three years, simplified bookkeeping, and a requirement that credit institutions devote 0.5% of their assets to entrepreneurship projects. It would also commit the Government to regulate the social entrepreneur and the entrepreneur visa.

Who it affects

• People who want to start a company or have run one for less than five years: They would get tax exemptions, social security rebates and the option to cash out unemployment benefits.
• Private investors who finance new projects: They would receive tax deductions and exemptions for investing.
• Unemployed people who want to become self-employed or partners in a new company: They could receive 100% of their unemployment benefit in a single payment.
• Banks and credit institutions: They would have to devote at least 0.5% of their assets to financing entrepreneurship projects.
• Women, young people and people with disabilities who are entrepreneurs: They would have priority for microcredit approval.

Words worth knowing

Inversor de proximidad (proximity investor)

A person who invests their own money in a new project and also advises the entrepreneur. Also known as a business angel.

Préstamo participativo (participating loan)

A loan whose interest depends on how the business performs, so the lender earns more if the company does well.

Capitalizar el paro (cashing out unemployment benefits)

Receiving the full unemployment benefit in a single payment to start a business or become a partner in a new company.

Sociedad de Garantía Recíproca (mutual guarantee society)

A company that guarantees small businesses and the self-employed so banks will lend to them.

Titulización (securitization)

Turning a bundle of loans into securities that can be sold, so banks recover money and can lend more.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries