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A preliminary draft law to support entrepreneurs in Spain

support-entrepreneurship-in-spainIn February 2013, the Spanish government adopted an array of measures in order to develop and stimulate entrepreneurship in Spain. These measures are a boon for entrepreneurs who enjoy financial and tax benefits for their business in Spain.

The purpose of these measures is to encourage Spanish and foreigners entrepreneurs to invest in Spain. The Spanish government wants to facilitate the entrepreneurship and the employment of young people in Spain.

Four months later, the Spanish government is back with the intention to approve a draft law for entrepreneurs. Indeed, this new draft law to support entrepreneurs includes numerous measures. The purpose of this draft law is to make entrepreneurship more accessible and to encourage young people to start their own business in Spain.

1. Creation a new legal status: the entrepreneur with limited liability

One of the measures include in the new draft law is the creation of a new legal status in order to stimulate the creation of companies in Spain: the status of an entrepreneur with limited liability. This new status will protect the home of the entrepreneur in case of bankruptcy. There is one condition, the home should not have more value than 300,000 Euros. The Spanish government wants to provide a status which will still be between the legal status of companies such as SL or SA and the status of self-employed entrepreneur. The goal is to frame the responsibility and protect the property with which the entrepreneur would have to respond in the event of bankruptcy.

2. Support young people to start a business in Spain

To support young people to start a business in Spain, the Spanish government has set up “light” social security contributions for people under 30 years deciding to start their own business. These contributions amount to 50 Euros for the first six months and 179.10 Euros during the next ten months.

To encourage and support unemployed young people to start their own business, a new measure will allow them to receive their unemployment benefits during the first nine months of activity as self-employed entrepreneur.

3. Fiscal support for entrepreneurs

New tax measures will be put in place in order to support new business creation:

– Corporation tax: reduced to 15%.

– Income tax: 20% discount on the annual net performance.

For unemployed people deciding to set up a business in Spain, they will benefit from a total exemption of income tax on all unemployment benefits they will receive.

4. Deferred payment of VAT for self-employed entrepreneurs and SMEs in Spain

This new measure will allow self-employed entrepreneurs and SMEs to be exempt from VAT payment as invoices are not paid in. In other words, the payment of VAT is deferred until the self-employed entrepreneur or SME has banked the bill. The only condition to benefit from this measure will justify billing under 2 million from the companies. The aim is to avoid that businesses pay VAT without banking invoice. In this way, they have not to carry out cash advances.

This new measure will also include a new tax deduction for small and medium businesses that reinvest their profits in fixed asset such as production tools or office equipment.

Conclusion

The measures of the Spanish government, which came into force in February 2013, have already been fruitful. Since 1 March 2013, more than 30,000 young people have adopted the status of self-employed entrepreneur and benefited from the new measures. On the other hand, some 25,253 young people have signed a permanent contract since the beginning of the year. It seems that these measures to stimulate the employment of youth people and the entrepreneurship in Spain have are highly positive. The Spanish government wants to convince foreign entrepreneurs to invest and create companies in Spain.

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jd
jd
10 years attracted

This did go well because it is providing cover after a heavy rainstorm. all who could have been paid unemployment benefit and some kind of social benefit, if one lose hes or her business, where first cleaned out through some very funny laws discern for that purpose. So they created soft landing for new beginner. when million of people had been denied and reap up of there benefit.This is deity politics.