One of the biggest obstacles to entrepreneurs setting up a new business in Lanzarote, and Spain in general, is the relatively high cost of social security payments, which are around €250 to €280 per month.
A new law is currently in draft, and has full party support to reduce the payments for newly self employed people (Autonomos.)
Under the new legislation, the payments will be reduced to:
This will save newly self employed people over €2000 in the first 18 months in business.
Another aspect of the legislation is a proposal to increase the tax write off for angel investors into new businesses from the current €20,000 to €50,000.
We hope this proposal passes through the government system quickly – it’s a terrific first step towards making it easier for people to set up new businesses in Spain, and may help bring some of the people working outside the system into it.