Spanish Regulation that Promotes Foreign Investments

Spain continues to position itself as one of the most attractive destinations in Europe for international investors and entrepreneurs.
With the Law 14/2013 of 27 September, also known as the Entrepreneurs’ Law, Spain introduced a legal framework to stimulate foreign investment, innovation, and business creation — offering residence permits and tax benefits to non-EU investors and professionals who choose Spain as their base.

At Frau Legal, our legal team in Mallorca and Ibiza specialises in assisting international investors who wish to establish, expand, or relocate their business activities to Spain under this favourable regulatory environment.

1. Objectives of the regulation

The main purpose of the Entrepreneurs’ Law is to:

• Boost foreign investment in Spain.
• Facilitate the residence and work of investors, entrepreneurs, and professionals.
• Support economic growth and job creation.
• Simplify administrative and immigration procedures for international talent.

This law provides a legal and tax framework designed to make Spain more competitive within the global market while promoting innovation and entrepreneurship.

2. Who can benefit from this regulation?

The regulation primarily benefits:

• Non-EU investors making a significant capital investment in Spain (Golden Visa).
• Entrepreneurs developing innovative projects with high socioeconomic impact.
• Qualified professionals and researchers with contracts from Spanish companies or universities.
• Intra-company transferees relocated to Spain by multinational corporations.

📘 See also: Residence Permit for Foreign Investors in Spain

3. Key advantages for investors

1. Fast-track residence permits — decisions are typically issued within 20 business days.
2. Freedom to reside and work anywhere in Spain.
3. Mobility within the Schengen Area (26 countries).
4. Family reunification without delays.
5. Legal certainty and favourable taxation options.

These benefits have made Spain one of the most appealing destinations for entrepreneurs from the UK, USA, the Middle East, and Latin America.

4. Investment options under the Entrepreneurs’ Law

To qualify, investors may choose among several eligible investment types:

• Real estate investment of at least €500,000 (free of liens).
• Business project generating jobs or contributing to innovation.
• Public debt investment of €2 million.
• Equity or deposits of €1 million in Spanish companies.

These investment thresholds align with the Spanish Golden Visa program, combining residence benefits with economic opportunity.

5. Administrative and tax incentives

In addition to residence advantages, the regulation includes several tax measures:

• Simplified company creation and registration procedures.
• Electronic filing for investors and companies.
• Favourable conditions for start-ups and innovative ventures.
• Improved tax treatment for expatriates under the Beckham Law (Ley Beckham), which allows reduced income tax rates for foreign workers in Spain.

These measures are designed to make Spain a stable and competitive environment for both business and lifestyle.

6. Legal assistance for international investors

At Frau Legal, we offer comprehensive legal, immigration, and tax services for foreign investors who wish to:

• Establish a company or business in Spain.
• Obtain residence or work permits under the Entrepreneurs’ Law.
• Manage investment property transactions and due diligence.
• Optimise their tax situation as residents or non-residents.

💼 Learn more about our Immigration and Business Law Services and contact usfor personalised assistance in Mallorca or Ibiza.