Support for recently registered startups in Spain
For early-stage startups, several programs are specifically designed to assist companies just beginning their operations. These programs aim to overcome key challenges such as product development, marketing, patent registration, and investor search.
Grants and subsidies for early-stage startups
Grants play a crucial role in the development of startups, helping to cover initial costs, including the creation of a minimum viable product (MVP), marketing campaigns, and intellectual property registration. Such subsidies are awarded at both the national and regional levels. Depending on the region and type of project, grant amounts can vary from €25,000 to €50,000.
Acceleration programs for startups in Spain
Spain hosts several major accelerators, such as Wayra and SeedRocket, which offer startups not only funding but also access to experts and investors. Acceleration programs help young companies to enter the market faster, improve their business models, and expand their networks. Typically, accelerators provide small investments in exchange for equity in the company and offer mentoring support.
Microloans and preferential loans
Microcredit programs are an excellent option for startups that need financing to scale their business or develop new products. For example, the ENISA program offers loans ranging from €25,000 to €300,000 for startups with flexible repayment conditions. These loans can be used for scaling the business, funding research, and developing new products. The main advantage of these loans is the lack of collateral requirements.
Incubation programs and coworking spaces
Incubators, such as Barcelona Activa and Madrid Emprende, provide workspace and administrative support for startups, significantly reducing operational costs in the early years of the company. Incubation programs also include consultations on legal and accounting issues, which is especially beneficial in the initial stages of a business.
Eligibility criteria for startup support programs
To gain access to support programs, startups must meet certain requirements:
- Company age: Most programs limit the age of the startup to 6–12 months from the date of registration.
- Financial performance: While there is no need to demonstrate high revenue or operational profit, a clear business plan showing growth potential and market prospects is required.
- Innovative potential: The startup must demonstrate an innovative or technological character, whether through the use of new technologies, original business models, or approaches to solving existing market problems.
- Equity investment: Some programs require a capital investment that may range from 10% to 30% of the requested support amount.
Government support programs for startups in Spain
ENISA (Empresa Nacional de Innovación)
ENISA provides loans to startups and small enterprises focused on innovation. The programs target young companies, innovative small and medium-sized enterprises, and firms planning to enter international markets.
- Loan amounts: From €25,000 to €1.5 million.
- Requirements: At least 30% equity of the requested amount and the company’s innovative potential.
ICEX (Instituto Español de Comercio Exterior)
ICEX supports startups ready for internationalization. The program includes funding for participation in international exhibitions, developing export strategies, and assistance in entering foreign markets.
- Funding: Coverage of up to 50% of export event expenses.
- Requirements: Annual turnover of at least €100,000 and a clear international market entry strategy. The program is intended for companies operating for more than one year and demonstrating growth potential.
CDTI (Centro para el Desarrollo Tecnológico y la Innovación)
CDTI supports technology startups working in fields such as biotechnology, artificial intelligence, and renewable energy.
- Grant Amounts: From €75,000 to several million euros, depending on the project size and company revenue.
- Requirements: An innovative character and significant research and development costs.
Regional support programs for startups in Spain
Spain actively supports startups at the regional level, allowing for the consideration of local entrepreneurs’ specific needs. Programs in different regions often complement each other, offering a variety of opportunities.
Catalonia: Barcelona Activa
Barcelona Activa is one of the leading startup support programs in Catalonia. It offers startups funding, consulting, acceleration programs, and coworking spaces. A key component is support for technological and social startups, as well as those in the creative industries. The program helps entrepreneurs develop their projects at both local and international levels.
- Requirements: Registration in Catalonia, a minimum of 6 months of operation, and a business plan that includes growth and investment attraction prospects.
- Funding Amount: Up to €100,000.
Valencia: Startup Valencia
Startup Valencia aims to create an innovative ecosystem. The program includes grants, acceleration programs, and mentoring support.
- Requirements: Registration in Valencia, a minimum of one year of operation, demonstration of innovative potential, and an annual turnover of at least €50,000.
- Support Amount: Coverage of up to 70% of project development costs and participation in international events.
Madrid: Madrid Emprende
Madrid Emprende offers grants of up to €50,000 and access to incubators and acceleration programs. The program is aimed at companies with a well-structured business plan and minimal revenue. Participants can expect preferential funding and assistance in finding investors.
European and private initiatives for startups
In addition to government programs, startups in Spain can rely on support from the European Investment Fund (EIF), which provides venture capital, and participate in accelerators like Wayra and SeedRocket. These programs not only provide funding but also offer access to international networks, mentoring programs, and expertise.
Tax incentives and stimuli for startups in Spain
Spain offers significant tax incentives for startups. In the first two years, the corporate tax rate is reduced to 15% instead of the standard 25%, helping to minimize taxation in the early years. Investors can benefit from tax deductions of up to 30% on amounts up to €60,000 if they invest in innovative companies.
Startups can also receive tax deductions of up to 25% on research and development expenses, and in some cases, up to 42%. Additionally, startup founders can take advantage of social security contribution incentives, reducing costs by 50% in the first year of the company’s operation.
Conclusion
Spain offers extensive opportunities for startup growth through government, regional, and private support programs. However, navigating these programs can be challenging. Finetic Consulting can help you:
- Assess your chances of receiving support.
- Prepare the necessary documentation.
- Find suitable programs for your business.
Contact Finetic Consulting for a free consultation! We will help you evaluate your chances of receiving support, prepare all necessary documents, and identify the best programs for your business.