Startup Requirements for Obtaining a Startup Visa in Spain

Introduction

The Spain Startup Visa is a valuable opportunity for aspiring entrepreneurs from around the world to launch a business in Spain. These entrepreneurs can significantly contribute to the improvement of the country's economy. The program also facilitates the acquisition of a residence permit (residency). The initial law was passed back in 2013, and reforms were introduced at the end of 2021 to make the country more attractive for new startups. The revised law includes tax incentives, a reduced rate of 15%, and the option to defer tax payments for up to one year. Obtaining a startup visa in Spain is considered one of the simplest processes compared to similar programs in Europe. For those planning to launch their own startup, the startup visa is an appealing option. It grants legal status, access to the European market, and a simplified residence permit process for the whole family. However, in order to obtain this visa, it is crucial to meet strict requirements for both the startup itself and the business plan.

Key Requirements for the Startup

Project Innovation

Innovation is one of the most important criteria for being eligible for a Spanish startup visa. Your startup idea must be unique and capable of significantly impacting existing industries or creating new opportunities for the Spanish economy. You must demonstrate not only the use of new technologies but also how you plan to use them to implement innovative solutions that foster sectoral growth. Examples of such startups include:

1. Tech startups: Developing software for big data analysis.
2. Scientific innovations: Projects that enhance medical technology.
3. Artificial intelligence projects: Creating systems to automate business processes.

The business you propose must positively impact the national economy and attract investor interest. A basic plan to open a café or a real estate agency won’t be sufficient. The project must offer real value in order to have a good chance of securing investments. These ideas and their supporting arguments must be clearly outlined in the business plan, including a market analysis, competitor research, and financial projections. The success of your business plan depends on how convincingly you demonstrate your project’s viability.

Positive Economic Impact

The startup must show significant benefits to the Spanish economy. For example, this can be illustrated by creating new jobs, attracting foreign investment, or developing the country’s scientific and technological base. Your project must present tangible contributions to economic growth by offering concrete, in-demand solutions. Examples of positive economic impact include:

1. Job creation: Startups that ensure employment for local workers.
2. Attracting investment: Successful funding rounds that increase the company’s capitalization.
3. Tech development: Introducing new, scalable technologies applicable in other sectors.

Business Plan Requirements

Business Plan Structure

To obtain a startup visa in Spain, you must submit a detailed, well-structured business plan. It should cover all parts of the project and be provided in both English and Spanish. References to external sources must be included in the text where necessary. Note that not all sections allow for document attachments. When developing the business plan for a Spanish startup visa, it is essential to meet all ENISA (Empresa Nacional de Innovación) requirements. These were updated in April 2023. Failure to follow the correct structure and limits may lead to rejection of your submission to ENISA. Therefore, your plan should include the following key elements:

1. Innovation
2. Scalability
3. Market attractiveness
4. Company development stage
5. Business model
6. Competition
7. Management team
8. Partners
9. Shareholders
10. Suppliers
11. Customers

Let’s now look more closely at the structure, from the executive summary to the implementation plan.

Executive Summary

This section should clearly state the essence of your startup, its goals, and the key factors for success in a concise format. It serves as the project’s business card, giving readers a first impression of your venture. Show potential investors that you have a clear plan for execution. Key elements of the executive summary include:

1. Brief description of the startup.
2. Main objectives and goals.
3. Key success indicators, such as projected revenue and user growth.

Product or Service Description

This section should fully explain the product or service behind your startup. It is especially important to provide a clear and detailed description of each patent step if applicable. Highlight the features that set your product apart from competitors. Explain the development stage and readiness for market entry. Include technical specifications, areas of application, and your plan for achieving patent success. Emphasize the innovative nature of your project.

Market Analysis

Before presenting your startup, it’s critical to thoroughly research the market. The analysis should clearly identify your target audience, competitors, as well as potential opportunities and threats. You need to demonstrate how your startup will stand out from what’s already available.

Marketing Strategy

This section outlines how you plan to promote your product or service. It should detail the distribution channels, marketing tools, and expected marketing expenses. Explain your sales strategy in Spain, how you intend to attract and retain customers, and the methods you’ll use to reach your target audience.

Financial Plan

A financial plan is a mandatory section of the business plan. It should include income and expense projections, planned investments, and funding sources. You should assess financial risks to show you’re prepared for various development paths. Provide specific figures on the funding required and its use—research, development, advertising, or hiring. Explain how you’ll cover expenses: personal funds, investor backing, or bank loans. If planning to create jobs, indicate the number of employees needed and their roles. Include a timeline for major project milestones so investors understand the duration of the implementation. Add forecasts for when the business is expected to become profitable and when investments will be repaid.

Project Team

In this section, describe your team’s qualifications and experience. Include each member’s relevant work experience in your startup’s field, previous roles, education, career growth, and achievements. This information is crucial for showing their potential contribution to the project. Use a table to list roles and responsibilities.

Implementation Plan

Key elements of the implementation plan include:

1. Project phases and timeline.
2. Main tasks and milestones.
3. Resource needs and required investments.

Additional Startup Requirements

Technological Innovation

Applicants for the startup visa are required to incorporate new technologies or innovative solutions into their projects. It's essential to demonstrate how your startup will disrupt existing business models or create entirely new ones. Examples include:

1. Artificial Intelligence: Using AI to automate business processes.
2. Blockchain Technology: Implementing blockchain for transparent transactions.
3. Biotechnology: Developing new methods for treating diseases.

Social Impact

The startup should generate positive social value—whether by improving quality of life, protecting the environment, or enhancing education. It’s important to show that your project brings not only economic but also social benefits. Examples:

1. Healthcare: Developing innovative medical technologies.
2. Ecology: Projects aimed at reducing the carbon footprint.
3. Education: Online learning platforms and skill development tools.

Economic Sustainability

Economic resilience is another key criterion for obtaining a startup visa. Your project must be financially viable and able to withstand potential crises. This includes a clear monetization strategy, projected revenue growth, and risk mitigation plans. Ways to ensure economic sustainability:

1. Clear Monetization Plan: A detailed explanation of how the startup will generate income.
2. Forecasted Revenue Growth: Expected increase in revenues over several years.
3. Crisis Resilience: Strategies to reduce risks during economic downturns.

Examples of Successful Startups

Example 1: Technology Startup Project Description: Development of a big data analytics platform enabling companies to quickly process vast amounts of information. Results:

1. Raised €2 million in investments.
2. Created 50 new jobs.
3. Implemented the technology in major international corporations.

Example 2: Biotech Startup Project Description: Development of an innovative drug for treating rare diseases, which has successfully passed clinical trials and received a patent. Results:

1. Secured patents in Europe and the USA.
2. Attracted €5 million in funding.
3. Completed clinical trials and entered international markets.

Tips for Preparing a Business Plan

Thorough Development of All Sections

To successfully apply for a Spanish startup visa, you need more than a strong idea—you must also understand local business culture and visa requirements. Each section of your business plan should be detailed and well-structured. Investors and authorities expect a comprehensive and convincing presentation. Typically, it takes about 30 days to develop a project and write the plan. Applications to UGE and ENISA are then processed within 60 days. Remember: the business plan is not just a formality. If it’s not taken seriously, your application may be denied.

Use of Up-to-Date Data

All data and forecasts in your business plan should be current and based on actual research and analysis. This demonstrates professionalism and builds trust in your project.

Involving Professionals

Ideally, draft the business plan yourself first, then have it reviewed by an experienced professional. This approach saves money and ensures your plan stands out. Experts can help you prepare a high-quality, compelling document.

Conclusion

Securing a Spanish startup visa requires thorough preparation and compliance with strict standards. However, with the right approach and an innovative, high-potential project, this visa can unlock exciting opportunities in one of Europe's leading economies. Your business plan must be clear, logical, and realistic—showcasing your expertise and readiness to overcome challenges. Be creative, but focus on details and accuracy. You need to convince not only the Spanish authorities of your startup’s value and viability—but also yourself. The El Relocador team is here to support young entrepreneurs through the entire startup visa process. We will prepare your documents, help craft your business plan, and guide you at every stage.