More self-employed but less income.

In the last months due to high unemployment, the government has introduced many important measures to encourage self-employment, such as reduced fees for both people younger than 30 and also for people over 30, 20% tax discount during the first two years that the new self-employed people obtain a profit and other measures that according to the Tax Office have increased the number of self-employed people but it seem is not gold all that glitters.

The self-employed people in Spain declared in 2007 an average business profit of 13,525 per year and according to the latest data available for 2012 the figure had fallen to 9,100 Euros. This worrying statistic reflects a reduction in net income of self-employed of 33% in 5 years ... a genuine outrage. That, for those still in the market can be described as survival, however the fall so bloated corresponds to the incorporation of new freelancers who have led the drop in revenue in an aggressive and competitive mortal coil in order to procure an income.

According to statistics from the Tax Agency almost 80% of the self-employed people do not get 1,000 Euros a month ... at least officially, because with successive increases in both the VAT and withholding rates fraud seems an affordable option.

Small businesses managed by self-employed are the main engine of the Spanish economy but the measures are being taken by the government do not outweigh the burden of excessive taxes that are supporting them and consequently their incomes are falling,

Measures such the reduction on withholding rate to 15% that from this month may be applied to professionals with gross earnings lower than 15,000 per year will benefit according to estimates figures by the Treasury, to 325,000 taxpayers. This means that most freelancers who now represent 18.99% of the employed population will bill above this figure and will not benefit from this move so it seems self-employed people needs for measures that help them to make business and employ more people.

In VP ADVISERS we are aware that when the activity starts is the hardest time for the self-employed because is then when mostly we face the higher costs of the activity and the level of income could not be still too high . That is why the cost of registering you as self-employed with VP ADVISERS is FREE so we do not charge any starting-up cost and also you will enjoy a low tax and accounting monthly fee of only 50 € (IVA included) .

 

For further information, do not hesitate in contact VP ADVISERS