Self Employed Taxes Articles
Self employed persons (autonomos) and small companies represent 95% of the Spanish economy. In particular, autónomos are very relevant to the growth of the Spanish economy although there have been very few incentives to stimulate the creation of small business from a tax and social security perspective. The Spanish Government made a timid effort in 2013 but recent pressure from the centre-right political party Ciudadanos has brought into law new measures to help autonomos set up new businesses and create employment. These are measures that should have been enacted years ago but its better late than never!
The dubious sight of well-paid businesspeople walking away from soon to be bankrupt companies—but not before pocketing millions of Euros (in some cases hundreds of millions of Euros)—rightly raised a stink, particularly with those less fortunate employees who lost their jobs and shareholders who lost their money.
From 2014, the possibility of filing the tax declarations by hand will gradually be disappearing, so that they only can be submitted by internet.
When I heard that Spain was bringing in a new VAT cash accounting system, I was stunned. The first thought: how very progressive for Spain. However, then I read the law and how it will work, I quickly changed my mind, it would seem that the lawyers and governmental bureaucrats who wrote the law just do not know how small businesses work in the real world.
Election day on Sunday 20th November should produce a dramatic change in Government for Spain. But what will this mean?
There is a new proposal for a substantial change in VAT law that will allow small scale self employed businesses and companies to pay VAT on their real sales income.
The Spanish Government intends to approve a number of changes in legislation to strengthen the tax office's armoury against the black economy and tax fraud. They propose to modify the Penal Code so that substantial tax fraud may be penalised with up to 6 years (currently four years) in jail.