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News Briefs March 2014

New autonomos in Spain benefit from reduced €50 social security payments

Updating Spain's September law 14/2013, incentivising new freelancer or trabajador autonomo registration, new Autonomos under 30 years (women under 35 years old) will benefit from the following reductions:

• An 80% Social Security fee reduction during the first 6 months (€53.07)
• A 50% Social Security fee reduction during the next 6 months after the previous period of time (€130.91)
• A 30% Social Security fee reduction during the next 18 months after the previous period of time (€183.28)

For new Autonomos 30 years old or over, the reductions are equal to above but only for a total of 18 months.

Creating savings of almost 2,000 euros per individual during the first year of activity, these measures run uninterrupted from the moment you sign up for 18 months (or 30 months if you're under 30. Breaking up less active periods with bajas and altas (unregistering and reregistering during slower months) will mean you will miss out on the important discounts in the earlier months

If you're interested to register as an autonomous worker in Spain, our freelance professionals package will help you start on the right track.

VAT on Art transactions in Spain slashed to 10%

Gallery owners, artists and collectors alike will still be positively buzzing with news that Spain has reduced the VAT (IVA) on direct art purchases from the controversial 21% down to 10% at the end of January. With an aim to stimulate the cultural industry, defend Spanish art from a shaky economy, and edge closer to their European peers, the timing was conveniently placed just as ARCO, Spain's most important contemporary art fair, opened its doors mid February.

2013 saw a 62% decrease in contemporary art revenues from 2012, so the recovery is crucial for artists. Industry insiders await the reduction to be applied to sales from galleries where the 21% VAT is still applicable if they sell from their collections as opposed to acting as agents or middlemen for artists.

Further decreases in culture VAT are rumoured and strongly urged especially by the film industry who bear a 30% VAT but for the moment, the physical art industry has been given the boost.

Spainwide can help you with important personal tax issues, take a look at personal income tax or contact us at the number above.

Spain's 'patent box' regime encourages innovation and internationalisation

Spain has redeveloped its Patent Box fiscal incentive to become more accessible to companies and entrepreneurs.

Introduced in 2008, the incentive reduced Corporation Tax (Impuesto de Sociedades) on revenues originating from intangible assets (drawings, models, plans, formulas, processes, patents, innovation design, new technology etc. NOT software of trademarks) developed by the company.

However, 2010 figures from La Agencia Tributaria show that of the 20,000 companies registered as having active R&D (I+D), only 121 used the reduction totalling over €74 million. The changes laid out in Ley 14/2013 last September hope to encourage more firms to take advantage of the savings.

Highlights of the changes include:

• Easier qualifying rules: companies must participate in 25% of the IP creation instead of 100%
• Taxable income reduction on the IP asset increased now to 60% up from 50%
• Income and costs from leasing IP assets can now be excluded from taxable base
• Previous income assessments and asset qualifications derived from IP assets may be requested from Spanish administration.

This emphasis on encouraging innovation and harnessing each company's intellectual property, as well as identifying the value of each innovation design, patent, new technology will benefit Spain's innovation economy.

If you'd like to see how we can help you set up a company in Spain, our company formation package outlines exactly what we can do for you.