Fractional CFO services in Spain

Startup Law investor relief

Individual investors in qualifying Spanish startups can claim a 50% income tax deduction on investments up to €100k per year (raised from 30% / €60k under the previous regime). Five-year minimum holding period to preserve the relief. The closest Spanish equivalent of UK EIS, driving most structured Spanish angel rounds.

Startup Law tax status

Companies certified as Empresa Emergente under the Startup Law access a reduced 15% corporate tax rate (vs 25% standard) for the first four profitable years, plus deferred tax payments and simplified compliance. Requires ENISA certification on innovation and growth criteria. Available for up to five (or seven for biotech / energy) years from incorporation.

ENISA participative loans

ENISA is the public lender for innovative Spanish SMEs. Provides participative loans (préstamos participativos) of €25k–€1.5M with extended grace periods and interest tied partially to company performance. The main non-grant public funding option for Spanish startups; often used as a bridge or complement to VC.

CDTI grants and loans

CDTI is the Spanish R&D and innovation agency. Provides grants, subsidised loans (Línea Directa de Innovación, Neotec) and access to EU R&D funding. Neotec grants of up to €325k for tech startups with limited matching requirements. Often the single largest source of non-dilutive R&D capital for early-stage Spanish tech.

Spanish R&D tax credit

Spain offers one of the most generous R&D tax credits in Europe: 25% on R&D expenditure (42% on increases above the prior-year average) and 12% on innovation expenditure. Refundable in cash for SMEs subject to certain holding and reinvestment conditions. Stacks cleanly with the Startup Law and CDTI funding.

Revenue-based financing

Capchase, Wayflyer and local providers like Ritmo and Ritmo's competitors advance cash against forward revenues for Spanish ecommerce and SaaS companies. Faster to draw than venture debt, repaid as a fixed share of monthly revenue. Particularly useful given Spain's strong ecommerce and DTC scene in Barcelona and Madrid.

Startup Law stock options

Under the Startup Law (Ley 28/2022), stock options in qualifying Empresa Emergente companies benefit from a €50k annual income tax exemption per employee at exercise, with the balance deferred (taxable at the earliest of share sale, exit liquidity event, or ten years from grant). A material improvement over the prior taxed-at-exercise regime.

Standard stock options (non-Startup Law)

For companies that do not qualify for Startup Law status (typically larger or older companies), stock options remain taxed as employment income at exercise on the spread. Less attractive than the new Startup Law regime but still used where the company falls outside Empresa Emergente eligibility.

Phantom shares and SARs

Phantom share plans and Share Appreciation Rights remain common in Spanish startups, particularly where the company is not certified under the Startup Law or where management prefers cash-based long-term incentive plans. Employee taxed as employment income on payout at the exit event.

Restricted stock and grants

Direct grants of restricted shares to employees are less common in Spain than in the US, partly due to social security and notary cost considerations on share issues. Used selectively for senior hires where Startup Law options are not available or sufficient.

Option valuation expectations

Spanish companies typically peg option strike values to the price of the most recent priced round. Startup Law options require an independent valuation at grant to establish the fair value used for the tax exemption ceiling. Standard practice is to refresh the valuation at each priced round.

Reporting and Social Security

Option exercises and phantom payouts flow through Spanish payroll (Seguridad Social), with employer and employee social security contributions on the taxable element. Annual equity scheme reporting requirements apply via the corporate tax return and Form 720 for cross-border holdings where relevant.

Accounting

• •Holded - modern Spanish-built default; combines accounting, invoicing and basic ERP.
• •Sage 50 or Contasol - established alternatives, common at traditional asesorías.
• •QuickBooks Online or Xero - for Spanish subsidiaries of US or UK parents.

Payroll

• •A3 Software (Wolters Kluwer) - the dominant Spanish payroll engine at traditional asesorías.
• •Factorial - Spanish-built HR platform with integrated payroll.
• •Sage Payroll - alternative for companies on the broader Sage stack.
• •Deel or Remote - for hiring contractors and staff outside Spain.

Business banking

• •BBVA or Santander - for treasury, FX and traditional debt facilities.
• •Revolut Business - for early-stage simplicity.
• •Qonto - increasingly popular among Spanish startups.
• •Wise Business - for multi-currency operations.

Cap table & equity admin

• •Capboard - Spanish-built; designed around local share-issue and Startup Law mechanics.
• •Ledgy - for cross-border cap tables and multi-jurisdiction equity admin.
• •Carta - for Spanish companies with US investors or a US parent.

Expenses & corporate cards

• •Pleo - European default; clean Holded sync.
• •Spendesk - strong approval workflows for larger teams.
• •Payhawk - alternative with strong European coverage.