27 Jul 2013 9:10 AM:

Whatever business you try to start up in Spain it is expensive compared to the U.K.

You can reckon on outgoings to the Spanish government for social security, VAT and having your accounts prepared by an accountant costing a minimum of 500 euros a month per person before you make a cent for yourself. That is 1000 euros for 2 of you. I believe this is why the Spanish have such a large black economy and so many people are signing on the dole. If they made it easy and economical for people to start in self employment either full time or part time and paying social security and taxes based on a percentage of their earnings there would be a huge fall in unemployment statistics. The government might not rake in a huge amount from those beginning self employment but they would not be paying out dole money. Also these businesses would in many cases go on to employ others. The current situation in Spain only removes possible competition from the large companies. That is why they can afford to give kick backs to those in high places. If the basic social security payment was much lower people would feel it was worth working officially. Most people do not want to cheat the government but the system makes them have to operate ilegally.

 

Eltel1

Thread: Starting a new business - need some market research

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