When it comes to starting a new business, many entrepreneurs are looking to work in cryptocurrency and blockchain industries. Brian Magierski, for example, is one of the founders of Nanovision, a blockchain health startup that’s going to transform the way healthcare works across the globe. It’s precisely this global nature that makes it possible to start your business abroad–which is why you’ve started looking at possible countries for your new cryptocurrency-related business.
There are lots of great options there, but one of the best is Spain. Sure, there’s great weather and amazing beach culture in this country, but it’s also one of the best places to set up shop. Here’s why:
Popularity among startups
Unlike many sunny Mediterranean countries such as Italy, Portugal, and Greece, Spain is very friendly to new businesses and startups. Spanish culture itself is already very creative and entrepreneurial, and this fact, coupled with the fact that its economy is finally reaching pre-crisis levels, has paved the way for many new businesses. In fact, in 2017, investment in Spain’s tech startups grew 45 percent. And the only two EU countries that have more startup talent than Spain are the UK and Germany.
According to the Financial Times, “Spain is slowly making a name for itself as a base for start-ups. Venture capital investment has risen sharply in recent years, as has the availability of government funds. Madrid and Barcelona have taken the lead, but the entrepreneurial ecosystem is now expanding across the country.”
The entrepreneur visa
One of the greatest challenges Americans face when opening up businesses in foreign countries is the ability to get a visa. Especially because the UK is currently part of the EU (at least, for now), there are already many English speakers working in Spain, which could potentially make it harder for you to open up your business there. But Spain’s government values talent, which is why they’ve created a visa for entrepreneurs.
According to abadabogados.com, a Spanish legal site, to be granted this visa, you need to demonstrate that your new business: (1) will create new jobs, or; (2) have a positive economic impact on the society, or; (3) contributes to scientific or technological innovations. When it comes to opening up a new cryptocurrency or blockchain business, all three of these requirements are true. So once you run your application by a lawyer like Aaron Kelly on HG.org, who specializes in startups, you should be good to go.
This visa is no doubt a reason startups in Spain have seen constant growth in the 2000s, with seven percent growth in 2017.
Tax incentives for crypto businesses
Recently, the Spanish government has started pushing for legislation that’s going to make it easier for cryptocurrency and blockchain businesses to open up shop there. They’re hoping to improve their economy in the same way that Ireland flourished after providing tax breaks for many startups. According to Smartereum, the new legislation works like this:
“Lawmakers in Spain are set to debate on a new legislation that will exempt companies utilizing blockchain and cryptocurrency from paying tax. The bill being proposed by the ruling People’s Party will also propose incentives to attract startups seeking funds through Initial Coin Offerings (ICOs). In line with this bill, Spain’s National Securities Market Commission (CNMV) is drafting a guideline to protect cryptocurrency investors. It may also set a threshold below which a crypto investment wouldn’t need to be reported to the regulator.”
If Barcelona’s highest average temperature in August being 74 degrees Fahrenheit isn’t enough to convince you to move and start your business in Spain, then maybe these tax breaks will.
Good funding and cheap setup
According to The Next Web, since the Spanish government’s support of startups in 2013, “the country’s venture capital scene has exploded. Spanish startups have seen venture capital investments skyrocket from about €150 million in 2013 to almost €800 million in 2017, marking an all-time high in amount invested and number of deals.” Government grants, along with private donations, are constantly increasing, which means more funding for you.
In addition, Spain itself is cheap. Whether you’re setting up a home office in your low-rent apartment by the beach or you’re renting out a whole floor of a building, costs are lower than in the US. Considering that the average cost of a pint of beer in Spain is only 2 euros, you can imagine just how cheap everything else is, too.
As you can see, Spain is a great place to start any business, but cryptocurrency and blockchain businesses will thrive even more.
What kind of cryptocurrency or blockchain business are you thinking of starting?