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Category: News in Spain

Business cluster

Business cluster: what it is and how it works

Business cluster

Competitive advantage is a key element for the continuous improvement and success of a company and, indisputably, this term is nowadays linked to the business cluster. Do you want to know more about it? Below we will tell you everything you need to know about business clusters and what they can offer your company.

World inflation in 2022: estimated projections

World inflation in 2022: estimated projections

It is no secret that we are currently witnessing an increase in the cost of living globally, which is why several banking institutions have released their projections for the coming months. For this reason, various institutions in the banking sector have communicated their projections for the coming months. Do you want to know more about global inflation in 2022? Continue below and pay attention!

Public sector in Spain

The road to digitization of the public sector in Spain

Public sector in Spain

The Spain Digital Agenda 2025 proposed ten axes of reform and investment that would relaunch economic growth, reduce inequality, increase productivity and take advantage of new technologies. In the fifth is the digital transformation of public services and what are the steps to offer significant improvements to citizens. Do you want to know more about the digitization of the public sector in Spain? Here we will tell you all about it, let’s get to it!

EU Stability and Growth Pact

EU Stability and Growth Pact

Do you have a business in Spain? Then you are probably interested in knowing about the economic conditions in the country, the current regulations and agreements. So, in this article we tell you what is the EU Stability and Growth Pact and what is its current importance.

Inflation in Spain: causes and current measures

Inflation in Spain: causes and current measures

We recently told you about the Spanish economic situation during 2022 and, as we know that most of the doubts revolved around inflation in Spain, we explain below the possible causes and the measures taken by the Government.

Learn about the new quotas for the self-employed 2023-2031

Learn about the new quotas for the self-employed 2023-2031

The new quotas for the self-employed in Spain from 2023 to 2031 are undoubtedly causing a stir. Although they are still being processed and there is time for them to be improved and adapted, they should not go unnoticed. If you are self-employed or an entrepreneur, this article will be of great use to you.

 

What are the new quotas for the self-employed?

The current €294 minimum fixed contribution will be part of a progressive system of 13 tranches depending on the income received. This program will be implemented as of 2023, so that by 2031 the contribution will vary between €184 and €1,297.

As you will see, the new quotas can be described in a few words, but this is only a rough outline, so read on to learn more about the advantages and disadvantages involved.

Advantages of the new quotas for the self-employed

If you are self-employed, you will be interested to know the advantages and disadvantages of implementing the collection of these new fees.

A fair progressive system.

In short, whoever earns more, pays more. For years, the Spanish government has been evaluating the possibility of adjusting the self-employed quota to their real income, since it makes no sense for a self-employed person who earns 500 € to pay the same quota as one who earns 4,000 €.

Improve the social protection of the self-employed.

The average pension of the self-employed is 59.4% of that received by salaried workers and sick leave benefits are much lower.

This is because 85% of the self-employed contribute at the minimum rate and, although the option to contribute more exists, they do not take it. Therefore, the increase seems logical.

Sustainability of the pension system.

Currently, the Social Security pension system is considered an unviable hole that needs to be changed as soon as possible.

By increasing contributions, more money can be raised to support pensions.

Reduction of the contribution for those who earn less.

According to the Government, these measures will benefit more than half of the self-employed. In practice, it will be those who earn €900 or less.

Flexibility to adapt the quota for one year.

The possibility of modifying the amount 6 times a year is contemplated in order to give the self-employed the opportunity to adapt their income throughout the year.

 

You may also be interested in: Tax benefits for the self-employed in Spain

 

Disadvantages of the new quotas for the self-employed

  • It equates the obligations of two very different labor realities. This means that the responsibilities of the self-employed will be equal to those of the employee. This is, at first sight, unfair: the employee’s contributions are supported by the company, while the self-employed person is responsible for this economic responsibility on his own.

  • It does not value the risk of entrepreneurship. It does not take into account the uncertainty of income, the continuous reinvention, the extra hours of work, the fact that there are fewer and fewer vacations, the stress, among others.
    Nor is it valued what the self-employed represent for the economy: dynamizers of activity and employment.

  • It discourages entrepreneurship and self-employment. This type of change encourages the attraction of working in companies instead of entrepreneurship, something really bad if Spain wants to become a dynamic first level country.

  • The possibility of being able to choose one’s own pension plans and private insurance is eliminated. With this, the ability to choose the method of saving is lost.

  • People over 45 years of age find it more difficult to find an alternative to being self-employed, even if they get a public job.

  • It will be more difficult to hire due to higher costs.

  • Price increases. Faced with the loss of clients, many freelancers will once again compete on price, reducing the quality of their services. In the face of this price increase, inflation will be encouraged.

  • More underground economy, since the highest earners will hold back from reaching the highest bracket.

  • The self-employed will move to countries with more tax advantages.

 

You may also be interested in: Basic guide to bookkeeping as a freelancer

 

Summary of the new self-employed quotas 2023-2031

To close, here we will detail the collection of fees according to the real income of a self-employed worker:

 

You may also be interested in: Tax obligations for the self-employed in Spain 2022

 

What do you think about these new fees for freelancers? Do they affect your business model? If you want to upgrade your business as a freelancer and that these measures affect you in the least, contact us. In TAS Consulting we have a team of highly trained professionals to advise you in the best way.

 

What is the level of digitalization of companies in Spain in 2022?

What is the level of digitalization of companies in Spain in 2022?

The arrival of Covid-19 had a significant impact on the entire global economy. However, the digital transformation did not stop, which meant that companies around the world had to adapt to the new reality and thus prevail over time. But what happened to the level of digitization of companies in Spain? In this article we will explain how the digitalization of Spanish companies has evolved, according to studies and statistics. Let’s get to it!

What is the energy situation in Spain in 2022?

What is the energy situation in Spain in 2022?

PORTADA 19 JUL (mar) Situación energética en España 2022 EN

The war in Ukraine has not gone unnoticed at any time and its consequences have already begun to be felt in many countries on the European continent. In the case of Spain, the country is preparing to face the great effects that this war could cause, especially in the energy field. In this article we will explain the energy situation in Spain in 2022, let’s get to it!

The health situation in Spain 2022

The health situation in Spain 2022

It has been two years since the pandemic began. Since then, the healthcare system has responded to the needs of citizens as well as it could and the results of its efforts have just been published in the Annual Report of the National Health System 2020-2021. If you are thinking of traveling to Spain this year, in this article we will tell you about the country’s healthcare situation and what it has in store for the second half of 2022. Read on!

Spain's economic situation in 2022

Spain’s economic situation in 2022

When you start a business it is essential not only to keep up to date with the legal and fiscal regulations of your country to achieve success, but also to know what is happening in your environment and how it could affect you. Therefore, in this article we explain the economic situation in Spain in 2022.