SPAIN'S GREAT WAGE FREEZE REACHES COLLECTIVE BARGAINING ACCORDS

Even collective bargaining agreements reflect the process of the loss of purchasing power through salary devaluation that Spanish workers have been suffering from two years now: a growing number of them accept that wages are not going to rise, and in some cases that they will even fall.

DEDUCTION FOR INVESTMENTS IN START UPS OR RECENTLY CREATED COMPANIES

The recent Law to support the entrepreneurs added a new tax credit for investments in start -ups and it is interesting to know in case you are considering about taking actions in this way.

This deduction is applicable only in the full state fee (cuota íntegra estatal) and corresponds to the 20% of the amounts paid for the acquisition of shares in start -ups or meeting the requirements.

ENTERPRENEURS LAW: REDUCED SELF-EMPLOYED FEES FOR PEOPLE OLDER THAN 30

As previously announced by the government, social security reductions that were applied earlier this year for those under 30 years , have been extended to all groups of entrepreneurs , regardless of their ages .

Law 14/2013 , to support entrepreneurs and their internationalization estates that "The self-employed with 30 or more years of age that register their actvities by the very first time or who have not been self-employed in the last five years may apply the following reductions on the self-employed fees, for a maximum period of 18 months , according to the following scale: "

THE LIMITED LIABILITY ENTERPRENEUR

One of the main advantages of using a limited company with respect to carry on the business compared with doing it as a self-employed person is that the personal assets of directors and partners are protected against any corporate debt. The recent Entrepreneur Law creates limited liability through which individuals may avoid liability for business debts concerning their main house under certain conditions.

A FURTHER 21 BILLION EUROS IN DOUBTFUL LOANS SURFACED

Spanish banks have increased the amount of refinanced and restructured loans considered to be doubtful by 29% to 92.224 billion euros in the wake of tighter classification criteria imposed by the central bank.

According to the supervisor’s latest Financial Stability Report released Wednesday, banks now categorize only a quarter of the loans they have renegotiated with borrowers to be up to date on servicing, compared with 42% prior to the introduction of the new criteria introduced at the start of this year.

Free Business Registration.

Our office is a PAE, the only business office in Orihuela Costa registered at the Industry, Tourism and Commerce Ministery as PAE in order to offer FREE BUSINESS REGISTRATION (Free Self Employment Registration and Companies Formation) to all the persons that are looking for a new business life. 

NEW IVA CASH BASIS SYSTEM

Starting on the 1^st of January 2014, the Law 14/2013 introduced as a new option, the Cash based system for the IVA tax.

This is a way for the companies and professionals attached to this tax declarations working in a new way that allows not declaring the Incomes IVA until the moment is received the payment from the client. In the same way, the Expenses IVA amounts of those outstanding invoices from suppliers cannot be claimed until the invoices are paid. 

TAX FINES AND SANCTIONS ON TAX FORMS OBLIGATIONS (II)

On this new article we will see about other different tax fines and sanctions that can affect to people or corporations.

HOUSEHOLD DEBT DROPS TO LOWEST LEVEL SINCE 2007

Household debt in Spain fell to its lowest level in over six years in September as families continue to deleverage, the Bank of Spain said Monday.

The central bank said the liabilities of families declined 0.5 percent, or by 4.287 billion euros, from August to 798.045 billion, the lowest level since February 2007. Compared with a year earlier the magnitude of the decline was 4.5 percent. Household indebtedness has now declined for three months in a row after a pick-up in June as families took on more consumer loans.

LIMITED COMPANIES THAT ARE INACTIVE FOR MORE THAN 1 YEAR SHOULD BE DISSOLVED

In a previous article we discussed the obligations of a dormant company, now we will see the possible consequences of a company left dormant for a long period of time.

Leaving a company sleeping without dissolution is a situation in which there are numerous entities. However, sometimes we overlook that in the case of limited companies, being inactive for a period exceeding one year is a legal cause of dissolution.