A battery of measures including the reduction of the corporate tax to 15% or reductions of contributions came into force on February 24, 2013 in Spain.
In this article: the new measures that must be put in place by the Spanish government in 2013 are a significant windfall for Spaniards and foreign entrepreneurs who may benefit from even more financial and tax advantages for their business in Spain.
Hereafter the key measures included in the Real Decreto-Ley.
1. Reduction of 100% of contributions for small companies hiring young people with permanent contract
- Companies with less than 9 workers may not pay health insurance contributions, during the first year, for workers under age 30 with a permanent contract.
2. A total of 1.3 million companies in Spain
- A total of 1.3 million companies – 9 out of 10 companies with employees in Spain – may benefit from a measure which predicates a minimum of € 2,500 reduction in the price of their contributions.
- Also the 2.9 million self-employed may benefit from this measure if they decide to hire young people under age 30.
- The measure will be in force until the Spanish youth unemployment rate fall below 15%.
3. Reduction of 100% of the contribution to SMEs that hire unemployed young people with fixed-term contract
- Companies with more than 250 workers and which hire people under age 30 without work experience may benefit from a reduction of 100% in the price of their contributions. The reduction may be 75% for companies with more than 250 employees.
- This measure may benefits to young people without work experience and to people registered as unemployed for more than a year.
- Companies canceling the contracts during this period of bonus and reductions will have to return the money earned.
4. Evolution of temporary contracts into permanent contracts
The evolution of temporary contracts into permanent contracts signed by unemployed people under 30 without work experience may be entitled to a rebate of contributions of € 41.67 per month for three years or € 58.33 per month if a woman is hired.
5. Reduction of 100% in the price of health insurance contributions for a self-employed under age 30 who hires unemployed people over 45 years of age
Self-employed under age 30 who hires for the first time, since February 24, 2013, unemployed people over 45 years of age for an indefinite period, may benefit from a reduction of 100% in the price of their health insurance contributions during the 12 first months of employment.
6. Young entrepreneurs may benefit from Social Security bonuses for the first 30 months of activity
- During the first 6 months they may pay only € 50 for Social Security, rather than the current € 255.
- From the seventh month to the thirtieth month, they may have cuts or rebates of 30% in the price of their contributions.
- This measure may save € 2,000 in contributions during the first year and more than € 900 for the next years.
7. An ambitious project to support entrepreneurs
- An ambitious project to support entrepreneurs reducing the corporate tax to 15% for newly created companies.
8. Support for self-employment of unemployed young people
- They may reconcile the unemployment benefit with the beginning of their self-employed activity, during the first nine months.
- They may capitalize 100% of their unemployment benefit to make a contribution to the capital of their company.
9. Deferred payment for commercial transactions between companies
The new regulation stipulates that the term of payment, if it was not set a term of payment in the contract, will be 30 days after the date of receipt of the goods or the provision of services. This period may be negotiated by the two parties, but will never be more than 60 days.