UPDATES THAT WILL BE INTRODUCED BY THE FUTURE “START UPS” LAW ON THE IMPATRIATES TAX REGIME

The future «Start Ups» Law, which has already passed the first-step of the approval by the Spanish Parliament and that now needs the approbation by the Senate, introduces important modifications in regards to the Special Tax Regime for those workers who have been posted to the Spanish territory (onwards, impatriates).

 

What’s new in the future law:
  • It facilitates the fulfilment of some requirements and includes a few options in order to attract entrepreneurs and digital nomads.
  • One of the biggest changes is the reduction of non-residence period in Spain prior to the year of transfer that goes from ten to five years.
  • Also, so far the reasons that used to justify the displacement only were physical transfers due to the beginning of an employment relationship or the acquisition of the status of company director (with participation to the share capital of less than 25%).
  • Besides, the new text of the Law, aiming to attract the “digital nomads», contemplate the case of work activity provided remotely (telework) by the exclusive use of IT and telematics systems.
  • Entities’ directors are also allowed whatever their participation to the share capital is, whilst the limit of 25% on the share capital is kept for company’s directors. It also introduces the possibility to carry out an entrepreneurial activity (innovative with special economic interest for Spain).
  • Finally, it will allow to extend the application of the special regime for impatriates to the spouse and children under 25 years of age (or any age if they are disabled) whom move with the taxpayer or will do so afterwards but within the year in which the taxpayer pays for the special tax regime.

 

If you are interested in Start Ups or in the news about them, do not hesitate to contact us. Our team will inform you about the tax regime for impatriates in the new future law.

THE GOVERNMENT ELIMINATES THE «BEG VOTE» FOR SPANISH EXPATRIATES

On October 4, 2022, Organic Law 12/2022 came into force, which amends Organic Law 5/1985, of June 19, 1985, on the General Electoral System, which, since 2011, established the obligation of Spaniards living abroad to request or beg to vote.

 

Before the aforementioned reform, expatriate nationals had the obligation to «beg» to be granted the right to vote, generally to an electoral authority in their place of residence.

The limitation, which came into force in January 2011, raised several controversies, linked not only to the inconsistency of the obligation to request what is a constitutional right recognized to all citizens, but also derived from the cumbersome bureaucratic procedure that this request entailed: first of all, the short period of 25 days from the date of the convocation of the elections and the absence of a clear and unified procedure regarding the request for requesting the right to vote.

 

As a result of this reform, Spaniards abroad will receive the necessary documentation ex officio, by the Provincial Delegations of the Electoral Census Office corresponding to the address of registration of each person of Spanish nationality registered in the census of resident-absentee voters living abroad.

Likewise, the deadline for the deposit of the ballot in the ballot box is extended from 3 to 7 days and the possibility of downloading the ballot paper telematically is introduced, which will allow considerably shortening the deadlines for sending the documentation.

This is, as can be understood, a great step forward towards the debureaucratization of the system of voting from abroad, with the aim of facilitating the exercise of this right by all expatriate Spaniards.

 

If you are interested in how the new law on «beg» voting affects you, do not hesitate to contact us. Our team will inform you about the change made by the Spanish government for Spanish expatriates.

 

ANDORRA: CHANGES IN RESIDENCY REQUIREMENTS ANNOUNCED

On September 12, 2022, the session of the General Council (parliamentary chamber of the Principality of Andorra) held the political orientation debate, which began with the intervention of the Head of Government, Xavier Espot.

In this intervention, the Andorran president communicated a series of measures aimed, according to Mr. Espot himself, at moving towards a more harmonious and balanced model of the country with resources and a tourism model. Espot himself, to move towards a more harmonious and balanced model of country with resources and a more sustainable and quality tourism model.

In this programmatic context, the Head of Government announced measures to enable the Principality to opt for value-added foreign investor profiles, in areas such as innovation and sustainability.

Specifically, Mr. Espot announced the increase in the amount of economic investment or deposit to be made by the applicants in the passive or self-employed residence who decide to settle in Andorra.

Thus, in the case of passive residents, the necessary investment would increase from 400,000€ to 800,000€ and in the case of self-employed residents, the deposit to be made would increase from 15,000€ to 50,000€.

The Head of Government clarified that limitations will be introduced in the case of investments in real estate in order not to introduce further tension in the housing market.

It was also announced the intention that these announced legal changes should be imminent and approved through the urgency procedure instead of the ordinary legislative procedure.

At the time of writing, there is no record of any legal initiative having been presented in this regard, so we will be ready to follow up on any developments in this regard. If you need more information, please do not hesitate to contact us.

HAVE YOU RECENTLY VISITED CUBA AND NEED TO TRAVEL TO THE UNITED STATES?

For those foreigners who have been in Cuba as of January 12, 2021, it will no longer be sufficient to present the ESTA (Electronic System for Travel Authorization), but in any case it will be necessary to apply for a visa at the Consulate General or Consular Section of the U.S. Embassy of the applicant’s place of residence.

To obtain the visa it is necessary to go in person to the consular appointment and currently, the U.S. Embassy in Spain is granting appointments for August 2023.

For this reason it is important to work on the visa application well in advance for those who have to visit the United States even if the trip is not imminent.

At ExpatFeliu we remain at your disposal to support you in the processing of the corresponding visas!

END OF THE COVID PASSPORT AND THE FORM TO SPAIN

The Ministry of Health has eliminated the obligation to present the COVID passport and the traveler’s form to passengers entering Spain by plane or ship.

The elimination comes into force today, Tuesday, September 20, from 00:00. The resolution, published on Monday, September 19, modifies the resolution of April 1 on the sanitary controls to be carried out at the entry points of Spain.

 

Why has it been modified?

The Ministry has considered it appropriate to apply the modification in order to favor the normality of international mobility with the least impact on public health, since the General Directorate of Public Health considered it convenient to modify some aspects of the previous resolution.

 

Spain Travel Health unnecessary

The application required passengers to complete before departure, as a responsible declaration, the health control form through the App or the web.

After validating the document, the App generated an individual Qr for each traveler that had to be presented to the transport company.

Section 9 of the resolution, where cruise-type passenger ships making international voyages and sailing through territorial sea waters will not have to comply with the conditions previously applied, is also left without effect.

 

If you have any doubts about this, you can contact us and our team specialized in internationalization will advise you and give you more information about the entry restrictions to the Spanish state.

REFORM OF THE LAW ON FOREIGNERS

On August 16, 2022, the new Regulation of the Organic Law 4/2000, on the rights and freedoms of foreigners in Spain and their social integration, came into force. The reform aims to simplify and streamline the hiring of foreigners and facilitate the attraction of international talent. The construction of multicultural teams in companies helps internationalization processes

Main novelties introduced:

  1. Broader catalog of occupations that are difficult to cover to facilitate the hiring of foreigners in Spain
  2. Reduced deadlines to encourage the hiring of foreigners in the country of origin.
  3. Longer renewal period for Residence Cards (T.I.E.)
  4. Facilities for foreigners to obtain a self-employment permit
  5. Student visas will allow foreigners to work automatically, for longer hours and without geographical limitations.
  6. Elimination of the previous 3-year time limit required to change the student visa to a work permit.
  7. Improvements in the requirements necessary for family reunification.
  8. Major changes in labor and social roots.
  9.  Facilities for family members of Spaniards to settle in Spain.
  10. Creation of the new figure of «arraigo» for training purposes.
  11. The renewed work permit will allow the foreigner to work both as an employee and self-employed person.

 

From Expat Feliu we can accompany you in the design of your impatriation policies and give you comprehensive advice in the areas of migration, labor, tax and everything related to the needs of relocation and landing of foreign workers to our country.

CHILE ADHERES TO THE MADRID SYSTEM

On April 4, 2022, the Government of the Republic of Chile deposited its instrument of accession to the Madrid Protocol, thus becoming the 111th member of the Madrid System.

The Republic of Chile becomes the most recent Southern Cone country to join the Madrid System, which currently covers 127 countries.

From now on, trademark owners in the Republic will be able to start using the Madrid Protocol to protect their marks in the other 126 territories of the System, by filing a single international application and paying a single set of fees.

 

The entry into force of the Madrid Protocol comes at a time of high demand for priority rights in Chile. The first half of 2022 closed with more than 28,478 trademark applications.

Chile’s accession further strengthens the Madrid Protocol’s position as a fundamental component of trademark protection on a global scale, offering a practical and more cost-effective solution to trademark owners around the world and, from now on, in the Southern Cone.

 

In addition, it doesn’t require the services of a representative in each destination country to enter the respective processing.

The application can be made in Spanish, which avoids incurring translation costs to third parties.

 

For more information about Chile or the Madrid Protocol, please contact us and our experts in the field will not hesitate to answer your questions.

 

CHILE SE ADHIERE AL SISTEMA DE MADRID

El 4 de abril de 2022, el Gobierno de la República de Chile depositó su instrumento de adhesión al Protocolo de Madrid, convirtiéndose así en el 111º miembro del Sistema de Madrid.

La República de Chile se convierte en el país más reciente del Cono Sur en incorporarse al Sistema de Madrid, que actualmente abarca con 127 países.

A partir de ahora, los propietarios de marcas de la República de Chile podrán comenzar a utilizar el Protocolo de Madrid para proteger sus marcas en los otros 126 territorios del Sistema, mediante la presentación de una única solicitud internacional y un único pago de un solo conjunto de tasas.

 

La entrada en vigor del Protocolo de Madrid se produce en un momento de alta demanda de los derechos de prioridad en Chile. El primer semestre de 2022 cerró con más de 28.478 solicitudes de marcas.

La adhesión de Chile refuerza aún más la posición del Protocolo de Madrid como un componente fundamental de la protección de las marcas a escala global, al ofrecer una solución práctica y más económica a propietarios de marcas en todo el mundo y, a partir de ahora, en el Cono Sur.

 

Además, no requiere la contratación de los servicios de un representante en cada país de destino para efectos de ingresar la respectiva tramitación.

La solicitud se puede realizar en el idioma español, lo que evita incurrir en costes de traducción a terceros.

 

Para más información sobre Chile o del Protocolo de Madrid, contacta con nosotros y nuestros expertos en la materia, no dudaran en  resolver e informarte sobre tus dudas

THE WORLD’S MOST POWERFUL PASSPORTS

Today, because of the global health crisis, being of one nationality and having passports from one country or another has become a privilege or a curse.

Prior to the pandemic, European countries had the most powerful passports when traveling or moving around the world, but this advantage has now been reversed. Japan, South Korea and Singapore (all Asian countries) now hold the most powerful and sought after travel documents.

 

A Japanese passport has the advantage of trouble-free or unrestricted entry to 193 countries, only one more than those of Singapore and South Korea, according to the latest Henley & Partners passport report.

Although at war with Ukraine, Russian travel documents ranked 50th on the list, providing easy access to 119 nations. China ranked 69th with access to 80 countries, India’s passport ranked 87th, and Afghanistan’s passport is the least powerful, as the passport holder can only enter 27 countries.

According to Henley & Partner’s chairman, it will still take time before travel or migration to other countries will be possible with complete freedom, thus inhibiting us from our innate freedom and instinct to move to other countries.

Before the pandemic, exactly in 2017, Asian countries were barely among the top 10 most accepted passports in the world.

The power of European countries has declined globally and Germany is one step behind South Korea in the ranking. The United Kingdom ranks sixth with access to 187 countries.

The United States, meanwhile, is in seventh place with a score of 186 countries, in the top 10 in the ranking of countries with the most travel facilities.

 

The index, which uses 17 years of data, helps wealthy individuals and governments assess the value of citizenships around the world based on which passports offer the most prolific visa-free or visa-on-arrival access.

Still, given that global travel has yet to fully recover from Covid’s restrictions, the index offers a theorist of the best documents to have as the world emerges from the pandemic.

 

If you need more information or to know the ranking of your country or directly how to mobilize, don’t hesitate to contact us. Our experts will advise and inform you perfectly.

 

 

EB-5: PERMANENT RESIDENCE PERMIT IN THE USA

What is the EB-5 Green Card in the USA?

It is a special processing modality of Green Card (permanent residence permit in the USA) for those foreign applicants whose intention is to invest in «a new company»

Who can apply for this type of permanent residence in the USA. And what are the requirements to meet?

In order to apply for a Green Card under EB-5 processing, the following subjective and objective requirements should be taken into account:

  • As for the profile of the applicants, it will be that of a foreign investor and their dependents. Including in this sense spouses and unmarried children under 21 years of age. It is important to highlight that it is not an essential requirement that the applicant has previously obtained a visa in the USA.
  • As essential objective requirements to be able to apply for the Green Card EB-5, are:
    • Make an investment in a commercial “new company” in the USA. The amounts for investments today are:
      • Private company at USD 1,050,000
      • Areas considered highly complex and rural areas USD 800,000

Investments by foreign applicants made in bank funds or for the acquisition of real estate will not be taken into account.

  • Plan to create or retain a minimum of 10 permanent, full-time jobs for qualified American workers. Thus accrediting the creation of employment, directly or indirectly, depending on the type of «new company» and the corresponding investment.

 

How can we help you from Feliu N&I?

At Feliu N&I we offer advice and support: full legal, tax and labor throughout the process of processing and obtaining the EB-5 permanent residence permit in the USA, hand in hand with our local collaborators.

Our professionals will help you plan your strategy and analysis of investment possibilities and different applications of the «new company» concept in the USA. All this, within the legal framework and criteria of the competent US authority.

Also, after obtaining your permission, if you need our advice later, Feliu N&I has Relocation services and international tax advice at your disposal, to make both your business and personal project come true in the U.S.A.

If you have any questions, contact us and we will contact you as soon as possible.