Authorities publish additions to the Entrepreneurs’ Act, new criteria for applications announced
22 May 19
IMPACT – MEDIUM
What is the change? Immigration authorities have announced specific amendments to the Mobility Section of the Entrepreneurs’ Act that set out specific criteria for entrepreneurs, investors, researchers, and ICT permit applicants applying for work permits in Spain.
- Financial qualifications.
- Entrepreneurs. Monthly amount equivalent to at least 100% of the IPREM (Multiplier of the Public Income Index).
- Investors. Monthly amount equivalent to at least 100% of the IPREM.
- Dependents of entrepreneurs. Dependents, highly qualified specialists, researchers and third country nationals must earn a monthly amount equivalent to 150% of the IPREM for the first or primary dependent, and 50% of the IPREM for each additional dependent.
- Document requirements. Documents provided with the initial and renewal application must be submitted in Spanish and must be apostilled by the Diplomatic Avenue. Educational documents must be recognized by the Spanish Education Ministry to be considered valid.
- Investors. Equity investors are eligible for the Global Mobility permit if they have invested at least €500,000 (free of liens and encumbrances).
- Entrepreneurs. Entrepreneurs must be able to prove three years of experience in the related job title.
- Researchers. The Global Mobility permit for researchers is valid for two years or the length of the contract.
- ICT permits.Those applying for an ICT permit must hold an applicable social security agreement, as long as it is in place between Spain and the home country. The remuneration must comply with Spanish employment law minimums, excluding bonus/variable payments and with maximum 30% of salary in kind.
- Highly-qualified professionals: The remuneration threshold amounts to €54,142 for directors and managers; €40,077 EUR for technicians, excluding bonus/variable payments and with maximum 30% of salary in kind. A reduction coefficient of 0.75% is applicable for companies that belong to a strategic sector and when the individual is less than 30 years old.
- Dismissals for highly qualified professionals: As long as the dismissal is notified and the individual is entitled to access to the unemployment benefit, his work permit can be renewed under Act 4/2000, General Immigration Law (generic work permit as employed person).
- Medical coverage. Current permit holders must hold a valid health insurance policy to obtain a renewal permit.
- Change of employer. Foreign nationals who change their employing entity must notify the authorities and request a new permit unless the change is covered under Section 44 of the Worker’s Statute.
Background: The Entrepreneurs’ Act entered into force on Sept. 30, 2013 and aims to boost the economy by attracting high-skilled foreign talent.
Analysis & Comments: Investors, entrepreneurs and researchers should account for the financial qualifications required to apply for a work permit as well as the new document requirements. Additionally, the above-mentioned applicants should be sure to obtain a valid health insurance policy prior to applying for a renewal permit. Failure to do so will lead to the rejection of the application.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.