One of the key decision factors for attracting international talent is taxation. The International Talent Monitor, the survey that Barcelona Global carries out every two years among the international community living in Barcelona, is forceful regarding the fact that the taxation that this talent supports in Barcelona is much higher than the applied to professionals the countries around us, creating a barrier to attraction. Taxation is also key to strengthening the entrepreneurial ecosystem.
With the support of the city's most prestigious law firms, Barcelona Global has carried out a comparative study to analyze Barcelona's existing fiscal proposal to attract international talent and strengthen entrepreneurship, comparing it with other cities such as New York, Zurich, Paris, London and Singapore, concluding with a series of proposals to place Barcelona on the same level as other countries around us (competitors) from a fiscal point of view to place it at a neutral level.
All these activities have led to the approval of the Startups Law to attract and retain talent, as well as improve the competitiveness of Barcelona's entrepreneurial ecosystem. The Law includes important achievements to continue working so that the economy of knowledge and talent has greater opportunities in Spain to grow and consolidate.
The aim of the project is to achieve changes in the Spanish tax system applicable to international talent so that it is neutral, in line with the countries around us, and does not pose a barrier to attraction.
- Barcelona Global has developed a proposal for the necessary taxation to place it at the same level as other countries around us for the attraction and return of talent and the promotion of the entrepreneurial activity.
- Barcelona Global has actively participated with proposals in the draft of the Spanish Government Startup Law, achieving the introduction of many important measures in the Law Project, and continuing to promote the important proposals that have been left out to introduce them into the law, working intensively with public administrations and political parties.
- Barcelona Global has achieved that the Law for the Promotion of the Ecosystem of Emerging Companies includes the proposals aimed at attracting talent and promoting entrepreneurship promoted by Barcelona Global.
- Facilitate the attraction of independent professionals and investors by making it possible for them to take advantage of the non-resident tax regime as the employees already did, thus correcting a discrepancy.
- Enable startups to compete with corporations to attract talent through stock option plans, without taxation deactivating the incentive.
- Speed up the hiring of international talent by facilitating the access to the NIE, allowing a period of 6 months to obtain it.
- Enable the incorporation of international students of higher education already in Barcelona as local talent, as upon finishing their studies they will be able to have a permit for up to two years to look for a job or create companies.
- Encourage investments in startups by improving the taxation for venture capital fund managers and business angels.
- Attract digital nomads granting them residence permits for up to three years, renewable.
- Streamline the process for an innovative emerging company to be certified.
Extend the consideration of emerging company to those with a turnover of up to 10 million euros within the consideration with a time limit of 5 or 7 years from their creation.
Check the Law here.
Cristina H. Valiñani –Barcelona Global Projects Director