Spain is actively trying to establish itself as a European innovation hub, and the effort is starting to pay off. International law and business consulting firm iWorld has recorded a 60% increase in applications for Spain startup visas during the last year alone. This is a clear indication that startup founders and entrepreneurs from different parts of the world are acknowledging Spain’s changing economic priorities and the fact that it is becoming more and more immigration-friendly for startups.
The influx of people is a direct consequence of the country’s transition from an economy heavily reliant on tourism to one that is diversified and innovation-driven. Startups, by the projections, will create 10,000 new jobs by the end of 2025, and the government, therefore, has been taking steps in a very organized manner to bring in more entrepreneurs, trickle investment to the right places, and build a stronger tech ecosystem.
Besides, Spain’s strategic move was also recognizable through its decision to cease the Golden Visa program that allowed residency through real estate investment in April. Replacing it, the government is now paying more attention to innovation, renewable energy, and entrepreneurial activity sectors—fields in which startup visas are becoming the main instruments.
A policy framework designed to attract global talent
The first significant wave of international startup migration was in 2023 after the Beckham Law came into force, according to iWorld. The law provided a reduction of income tax for six years to startup founders and some employees. It also restricted the taxation to income earned within Spain, and a favorable 24% tax rate was applied to income up to €600,000.
The effect was felt right away: the number of startups on record shot up dramatically, thereby pushing the total valuation of the ecosystem to over €100 billion in 2024.
Additionally, Spain’s environment for venture capital is getting better by the day. At the moment, there are more than enough incubators and accelerators functioning all over the country to be supplemented by significant publicly funded programs like the European Innovation Council (EIC) Accelerator, and Enisa financing initiative. Banco Sabadell took the decision to double its startup support budget to €2 million in 2025 as a sign of the growing institutional commitment to innovation.
A fast, accessible visa designed for startup founders
A good number of people agree with the view that the Spanish startup visa is among the most simplified ones in Europe. It is given to the entrepreneurs of creative businesses (regardless of their investment size) and is also available for the closest family members. For the first 4 years, qualifying startups can benefit from a lower 15% corporate tax rate as opposed to the normal 25%.
That is also the factor that draws applicants: usually their requests get the green light within 20 working days, and the residence permit is granted at first for 3 years and then it can be extended by 2 years each time. This is very different from the less efficient and more bureaucratic visa systems that can be found in other parts of Europe and North America.
During the last year, the number of applications filed through iWorld drastically increased, and the highest increments were American, British, Algerian, and Nigerian founders. The company’s analysts are of the opinion that the pressure for more services will still be there in 2026 as a consequence of Spain’s intensifying innovation policies and maturing tech sector.
Spain’s startup momentum reaches a new peak
Aleksey Nosovsky, head of the legal department at iWorld, said, “We have been witnessing more and more requests for Spanish residence permits during the last decade. However, 2025 stands out as the most active year. Spain is perfect for companies that are looking for investment. Just in the first nine months of 2025, local startups managed to get €2.606 billion, whereas the whole of 2024 saw only €1.9 billion being raised.”
The fast progress is a strong indication of the country’s firm position in the European startup ecosystem. Spain, with the combined power of tax incentives, better funding opportunities, and a less complicated immigration process, is turning into a location that is more and more attractive to the startup founders who are in search of stability, infrastructure, and easy access to the bigger EU market.
About iWorld
iWorld is an international law and business consulting company that has been around for over 15 years. It helps clients with business relocation, company formation, growth, investment consulting, and access to public funding. Besides that, the firm, which operates in more than 20 countries across Europe, Asia, and South America, offers full immigration support for entrepreneurs and their families.
While Spain is investing heavily in its innovation plan, there is a company like iWorld that can be instrumental in facilitating the next wave of global founders who want to set up in the rapidly growing startup milieu in the country.