COMPREHENSIVE AND PERSONALIZED SUPPORT

We make your day-to-day life easier

IL COWORKING & LEGAL SERVICESAs you've seen in recent months through this Newsletter, we offer a wide range of opportunities for business owners and entrepreneurs, not only through our magnificent, modern spaces, where working will be easier and more comfortable, but also through the value-added services we provide, ensuring your project can prosper with full guarantees.

There's no doubt that starting a new business is a big decision, but approaching it effectively can be a real challenge. In the I newsletterL COWORKING & LEGAL SERVICES We offer you various tools to help you navigate a business model, a financial strategy, a commercial plan, or even how to carry out common tasks related to contracts, accounting, or taxes.

However, we are also fully aware that when it comes to putting your theoretical knowledge into practice, you may encounter some uncertainties, which is why you may need expert and professional guidance.

Aware of this, if you have any questions about setting up your company, the steps to follow for its incorporation, or how to meet the tax, accounting, or labor obligations you must meet with your new business structure, don't hesitate to contact us. Thanks to our partnership with the firm ACOUNTAX MADRID We are ready to offer you the best possible technical and legal help and guidance.

Contact us if you need the best professional support from our experts and forget about the insecurities that can keep you awake at night when starting a business. We adapt to the needs of your new professional project so you can focus solely on achieving your goals.

All this without forgetting that you can count on an unbeatable coworking space that adapts to your needs, whether for daily work or organizing business meetings, with maximum flexibility, in the center of Madrid and offering you a friendly and personalized service.

Remember, IL COWORKING & LEGAL SERVICES makes your day to day easier.

IMPROVE YOUR PRODUCTIVITY

Companies incorporate coaching to improve professional performance

According to a global study by the International Coaching Federation (ICF), this activity has experienced unprecedented growth, both in terms of the number of professionals and its economic impact. As a result of a socioeconomic situation generating accelerated changes and global challenges, the coaching profession has emerged as an essential tool for personal and professional development, highlighting its role within the business world.

The need to adapt to constant and rapid changes in the business world has led organizations to seek new ways to improve their performance and achieve their goals. This process of thoughtful and creative coaching helps maximize the personal and professional potential of teams.

Organizational coaching is increasingly focusing on emotional intelligence and management skills such as empathy, effective communication, and leadership, all of which are essential elements for success in today's business environment, where collaboration and teamwork are key.

In this sense, coaching helps employees and leaders develop these skills, enabling them to face challenges and conflicts more effectively, which in turn improves the work environment and overall satisfaction within the organization.

A key factor in the growth of this type of activity is the advancement of technology, which has allowed organizational coaching to transcend physical boundaries. Digital platforms have facilitated access to coaching experts from around the world, eliminating geographical barriers and allowing companies to receive personalized advice tailored to their needs.

Furthermore, the virtualization of coaching has allowed sessions to be adapted to more flexible schedules, which is especially useful for companies with teams spread across time zones. Virtual coaching has also proven to be more efficient in terms of time and cost.

It's often thought that business coaching focuses solely on improving team performance, increasing revenue, and increasing production. In reality, there's also a growing awareness of corporate well-being. Therefore, it's important to note that while business results are crucial, there's also a need to foster, attract, and retain talent.

It's also important to consider that workplace stress is a growing reality. According to a Gallup report, only 101% of employees in Spain feel engaged in their work, and 20% of employees experience daily anger in their workplace. This emotional disconnect can lead to decreased productivity and increased employee turnover. Business coaching addresses these issues by improving employee motivation and engagement.

In this context, a key is to analyze how a team is functioning in terms of responsibility and commitment. Coaching works very specifically on these aspects, like no other discipline, because it does so generatively: the focus is on the future, not so much on the past as with other organizational support interventions.

Business coaching can bring about significant transformations in organizations, but its success depends on how it is implemented and what expectations are set from the outset. Some companies abandon these programs prematurely because they fail to see immediate results, while others face internal resistance or a lack of clarity about what to expect from the process.

Ultimately, business coaching helps develop effective leadership skills, promoting a resilient organizational culture open to change. In today's business environment, organizations face significant challenges that impact their productivity and team satisfaction.

The reasons why more and more companies are investing in coaching are clear.

COMMERCIAL RESEARCH

Tips for conducting an effective analysis of the sector in which a company operates

An important aspect of developing a business plan is conducting an analysis of the sector to which a business belongs, in order to understand the potential for success when starting a business or improving its results. A company's sector analysis is essentially a market study; it addresses a competitor analysis to determine where a company will operate, who it will have to compete against, and under what conditions.

Some reasons to do a sector analysis are:

• Update your industry overview. Market research will give you an updated overview of your niche.
• Knowing the viability of a project. The success of a business venture largely depends on knowing its viability from the outset. Evaluating and understanding your potential market will allow you to lay the foundation for your business.
• Avoid overconfidence: It's not uncommon for entrepreneurs to consider their innovative business the best and invest a large amount of money in it without having conducted in-depth prior research.
• Rediscover the competition. Keeping an eye on what others are doing is always an effective strategy for identifying business opportunities and potential threats.
• Conduct a company self-assessment. Conducting an industry analysis will allow you to see your company from a different perspective, revealing what you're doing well and what you're doing poorly.
• Conduct a product self-assessment. Through industry analysis, we can determine whether our product is suitable for the target market and whether it will be able to meet consumer demand.
• As a control tool. A sector study will make it possible to correct any flaws or shortcomings in your company, product, or service.

It's important to keep in mind that companies aren't isolated entities or watertight compartments, but rather are located within a specific sector of activity, in which they operate and are influenced, and therefore it's essential to understand it thoroughly.

By understanding your company's sector, you'll have valuable information for developing competitive strategies that will help you achieve your goals amidst the ever-increasing competition.

Sector analysis is essentially based on the process of searching for data and information to understand the structural elements that comprise it and to understand the characteristics, complexity, and internal workings of the sector.

Market analysis can and should be approached from two perspectives:

• The macroenvironment: This involves addressing the study of those phenomena that affect the company and that it cannot control, such as political, economic, social, technological, environmental, or legal factors.
• The microenvironment: It's important to drill down to those elements that, to a greater or lesser extent, can be controlled: the microenvironment. In this type of analysis, you'll need to focus on aspects such as understanding your potential customers, without forgetting to delve into their profile and case studies. Equally important is understanding potential "barriers to entry," given the degree of difficulty in entering a niche market for new competitors or products.

There are many other aspects that can be explored in depth in the study you implement, given the broad scope and the need to carry out an analysis tailored to your needs. In this regard, exploring the distribution channels used by companies in the sector can be of great interest, as can taking into account the specific importance of identifying the level of technological development and innovation in certain sectors.

FAMILY PROTOCOL

Only 1 in 3 family businesses have planned their generational change

According to a recent study by the Family Business Institute, only 1 in 3 family businesses has planned for generational succession. Statistics indicate that only 33% of Spanish family businesses manage to pass on their business to the second generation, and only 13% of Spanish family businesses make it to the third generation.

The truth is that they have higher mortality rates than other businesses, largely as a result of the difficulties of blending family and business and because of the problems that arise within the family when passing the company on to the next generation.

The outstanding issue for most family businesses remains adequate succession planning. In this regard, generational change remains the Achilles' heel of the country's family businesses.

The outgoing generation usually wants to pass on the business to the next generation of the family so they can continue the family legacy, but they struggle to find the time to prepare for their exit from the business and plan how they will hand over the reins of the company to their children, either out of laziness, because family emotions come into play, or because it is a complex and delicate matter.

However, it is also true that there is growing awareness of the need to prepare for generational change and to regulate the family/business/ownership relationship in a Family Protocol to successfully transfer the business to the next generation, without affecting business efficiency or damaging family harmony.

In this regard, it should be noted that the family protocol is a contractual document that can address a wide range of issues, such as succession, communication and consensus in decision-making, the relationship between management and family members, etc. Its development is a way of reiterating the company's commitment to permanence and continuity. The Family Protocol is not merely an individual agreement. It establishes a set of commitments and agreements generated within a process that regulates commercial-corporate, civil, and tax matters.

The implementation of the family protocol requires, as a result of the confluence of relational (family), patrimonial (risk, financial return and governance) and rational (company, its direction and management) aspects, an orderly and multidisciplinary methodology, involving various professionals, led by experienced advisors. In this regard, if you need professional guidance in this matter, do not hesitate to contact us. IL Coworking & Legal Services, since through the strategic alliance we maintain with the law firm Acountax Madrid, we will provide you with adequate guidance on this matter.

Among the matters regulated in this type of protocol, some important ones stand out, such as:

• Majorities by which social agreements will be adopted.
• Distribution and application of benefits.
• Transfer of shares or participations.
• Starting new businesses.
• Possible assistance to family members.
• Training family members on access to and promotion within the company.

According to the Family Business Section of the Spanish Association of Tax Advisors (AEDAF) The approach to a family protocol is not a strictly fiscal or commercial issue -although it may be-, but rather it will have a lot to do with personal and psychological aspects of those involved, in which it will be essential to keep in mind the interrelations that exist between the members of the business family and its leadership, knowing how to channel and reorganize the management and decision-making process, laying the foundations for an orderly generational change.

The family protocol not only affects the company's partners or owners, but also other family members. Therefore, it is essential to first identify all family members and shareholders, as well as the type of relationships and emotional and financial dependencies that exist between the different family groups and their members, and their involvement in the management of the company.

HUMAN RESOURCES MANAGEMENT

Learn about the types of employment contracts and their specificities

If you plan to hire a support professional for your business, you should consider the current hiring modalities. The 2022 labor reform brought significant changes to various types of employment contracts.

By virtue of these particularities of the contracts, the State Public Employment Service (SEPE) It has a guide to employment contracts that establishes four main types, which are:

• The indefinite contract: This type of contract refers to employment relationships that the company intends to establish for an unspecified period of time, providing stability to both. There are more than 10 subtypes of permanent contracts. Some examples include the permanent full-time or part-time contract; the fixed-term contract for companies with seasonal activity; the permanent contract for the long-term unemployed; and the permanent remote contract, for permanent workers who perform their tasks in a location other than their usual workplace.

• The temporary contract: The professional relationship established between the company and the employee has a term. This is the best option when a company needs to hire additional staff for a predefined period of time, due to specific needs. Currently, there are very limited cases in which companies can enter into a temporary contract. The two most common types of temporary contracts are contracts due to production circumstances and contracts for replacing an employee.

• The alternating training contract: Its purpose is to allow contracted workers to combine their academic training with work. The duration will be a minimum of three months and a maximum of two years.

• The training contract for obtaining professional practice: The main difference between this contract and the previous one is that this agreement is signed after the worker has completed their studies. It must be formalized within three years of completing their studies. In the case of people with disabilities, this period will be five years. The duration of this type of contract will be between six months and one year.

All models have certain characteristics in common, so the most important information that an employment contract must contain is the following:

• Organization and employee data, such as name, ID, and address, among others.
• The type of contract that the parties sign.
• The place where the worker will carry out his tasks.
• The start date of the contract and, in the case of temporary contracts, the end date.
• The duration of the contract's trial period.
• In the case of a temporary contract, the reasons justifying this type of contract.
• The professional category of the worker, as well as the tasks they will perform on a daily basis.
• The type of work day the worker will perform, as well as the schedule.
• The vacation days that the worker may enjoy.
• The salary the worker will receive, as well as information on any extraordinary bonuses.
• The applicable collective agreement.

If you have any questions, please contact us and, through Acountax Madrid, a firm with which we maintain a strategic alliance, we will provide you with the necessary tools and support to streamline your hiring and improve the onboarding process for new employees, with maximum legal security..

CURRENT TAX

Personal Income Tax and Wealth Tax Forms for 2024 Published

For yet another year, with the imminent start of the Income Tax campaign, the Official State Gazette (BOE) has published Order HAC/242/2025, of March 13, approving the return forms for personal income tax and wealth tax for the 2024 fiscal year.

Among other new features, the corrective self-assessment system has been incorporated, including bank cards and Bizum cards as payment methods, and the processing of refunds for mutual fund members has been established.

The draft tax return can be viewed, obtained, and modified starting Wednesday, April 2, through the official Tax Agency website or app.

All taxpayers, regardless of the nature of their income, may obtain a draft personal income tax return through the Draft/Return Processing Service, after providing, where applicable, certain information requested for this purpose, or other information that the taxpayer may include.

Confirmation and submission of the draft declaration and payment, request for refund or waiver thereof will be carried out:

• By electronic means via the Internet, at the electronic address of the State Tax Administration Agency.
• Electronically via telephone, by appointment, for taxpayers who meet the requirements listed on the Tax Agency's email address.
• At the Tax Agency offices, by requesting an appointment, as well as at the offices authorized by the Autonomous Communities, Cities with Statute of Autonomy, and Local Authorities for confirmation of the draft tax return and its immediate electronic transmission.

Likewise, taxpayers may request a modification to the draft return if they believe personal or financial data not included in the return needs to be added, or if they notice that it contains erroneous or inaccurate data.

Taxpayer assistance and updates on payment methods. Multiple assistance channels are available:

• Telephone assistance.
• In-person assistance at the offices of the AEAT and other authorized offices
• Special plan for people over 65 years of age with tax domicile in small

This year, too, there's a simpler navigation process for taxpayers who don't need to make any changes to the draft version offered to them.

Regarding payment methods, this year's campaign adds the option to pay by credit or debit card and Bizum alongside traditional payment methods: direct debit, direct debit, full reference number (NRC), or payment receipt.

Agreement to ensure that minimum wage earners do not have to pay taxes in 2025

The Ministries of Finance and Labor have reached an agreement to ensure that workers earning the minimum interprofessional wage (SMI) will not pay personal income tax in 2025. The agreement involves introducing a deduction from the Personal Income Tax, equivalent to the amount each worker would have to pay in said tax, effectively eliminating it.

Pending the details of the regulations, those affected must file their income tax return next year if they want to benefit from the deduction. Therefore, those receiving the minimum wage will pay their personal income tax in advance this year and will receive a refund in their 2026 income tax return.

This would be a "personalized measure" because the income tax deduction will be made for "the exact amount equivalent to what each worker would have had to pay." For practical purposes, the measure cancels any payments the worker would have had to make. Furthermore, the Ministry of Labor assures that the agreement includes that, although the minimum wage will be taxed in the future, beyond 2025, it will always be respected that its recipients will earn at least 60% of the average net salary, so increases in these salaries and their taxation must always comply with this criterion.

The agreement does not extend to 2026 nor is it structurally fixed.

TODAY COMMERCIAL

New public hearing process for the electronic invoicing regulation

The Ministries of Economy and Finance have released for public hearing and information the new draft Royal Decree to implement the obligation for SMEs and self-employed workers to issue and receive invoices in electronic format, derived from the Create and Grow Law. This obligation is completely different from the one implemented by the Treasury, which will require companies and self-employed workers with income of more than €6 million to immediately share their invoices with the tax authorities starting in 2026. The legislator, who already introduced the bill to implement digital invoicing during the previous term, in June 2023, without it being approved due to the early elections, has made some changes, such as the exceptions to the invoice obligation for companies and professionals. Thus, all businesses that issue simplified invoices will be exempt from issuing electronic invoices. That is, when the amount of sales or services does not exceed €400, VAT included.

Also, when sales do not exceed €3,000, VAT included, in retail sales, hospitality and catering services (restaurants, bars, cafes, and similar establishments); services provided by dance halls and nightclubs; sales or ambulance services; consumer home services; transportation of people and their luggage; hairdressing and beauty salons; sports facilities; photo development and photography services; parking and vehicle parking; movie rentals; dry cleaning and laundry; and toll roads. These exemptions come after demands from smaller businesses regarding the burden of issuing digital invoices.

The date that will be used as a reference for determining when self-employed workers and SMEs must begin electronic invoicing will be the final publication of the order regulating the Tax Agency's public invoicing solution, i.e., the Treasury's free invoicing program. It is also currently under public consultation until April and is expected to be implemented within a few months. Furthermore, its implementation will be staggered. As explained in the text of the new regulation, once the public invoicing program is approved, entrepreneurs and professionals with a turnover exceeding €8 million will have one year to begin electronic invoicing—at the earliest, until 2026—while self-employed workers and companies with a turnover under €8 million would have another year to begin using electronic invoices—in this case, 2027.

Businesses can choose whether to use the public system or private software to issue electronic invoices. However, if they choose private software, they will be required to send a copy of the invoice to the public system.

But the new regulation also includes a series of secondary obligations, such as reporting the invoice status—acceptance or rejection and full effective payment. This second part of the formal obligations is delayed for another year for self-employed individuals and companies with revenues under 8 million euros, so these self-employed individuals and small business owners could have until 2028 to comply with all the obligations inherent to the invoice. Thus, it is estimated that self-employed individuals and small business owners will have an estimated period of two years to fully adapt to this system, since for them the process would be divided into "two phases." The text also advances that, during the first year of implementation, they will therefore be able to report on the invoice and payment status voluntarily.

The obligation to audit annual accounts is not exclusive to large companies.

The obligation to audit annual accounts is subject to mandatory compliance depending on the size and annual turnover, but it may also be mandatory in other cases, as noted by the Register of Auditors of Economists (REA) of the General Council of Economists (CGE). Specifically, it is true that the audit obligation affects both small and medium-sized companies based on their size, but also for other reasons or the nature of their activity.

This is the case for companies dedicated to investment services, those that need to apply for large subsidies, or in cases where any shareholder representing at least 51% of the capital requests it from the Commercial Registry, even if the company is not required to be audited. In any case, it should be remembered that the audit must be carried out before the annual accounts are approved by the General Meeting, that is, six months after the end of the financial year, i.e., generally before June 30th.

According to the Institute of Accounting and Auditing (ICAC), more than 451% of the companies audited during 2023 were small.

CURRENTLY WORKING

The Supreme Court reiterates the need for a prior hearing in disciplinary dismissals

Supreme Court ruling No. 175/2025, of March 5, reiterated the enforceable right to a hearing before dismissing an employee in the case of disciplinary dismissal. However, prior to High Court ruling No. 1250/2024, of November 18, 2024, it was considered reasonable for the employer to not activate a requirement that was considered unenforceable.

In this regard, it's worth remembering that, pursuant to its November 2024 ruling, the Supreme Court changed the rules for this type of dismissal. Since that date, companies are required to provide a prior hearing to the employee before carrying out disciplinary dismissals.

One of the key issues addressed by the Supreme Court has been whether the lack of the right to a hearing is sufficient to declare a dismissal unfair. In its ruling, the court emphasized that although this right is a relevant element, it is not the only criterion for annulling a dismissal if other circumstances justify the employer's decision. For the Supreme Court, in this case, the facts that led to the dismissal were conclusively proven, undermining the failure to observe the right to a hearing.

The ruling highlights that Article 7 of ILO Convention 158 stipulates that an employer cannot be required to exercise this right in situations where it would be unreasonable to do so. This position suggests that, depending on the circumstances of the particular case, the company may be exempt from offering a prior hearing.

Thus, until Judgment No. 1250/2024, issued in November 2024, it was not considered mandatory for companies to facilitate this type of hearing in the context of a disciplinary dismissal.

The ruling also clarifies the possibility of regulatory development to make the hearing prior to disciplinary dismissals mandatory. In this regard, the Court makes it clear that Article 7 of the ILO Convention is applicable without the need for specific standards: "(...) as it is a provision that must be classified as complete or automatically applicable, without requiring implementing regulations to be issued by Spain, since its terms are sufficiently and duly specified.

The court recognizes that the side effects of the COVID vaccine are an occupational accident.

Barcelona's 31st Labor Court has issued a groundbreaking ruling in Spain: the side effects caused by the AstraZeneca COVID vaccine can be considered an occupational accident and not a common illness. The ruling ruled in favor of a high school teacher in Barcelona, who developed a blood clot in 2021 after receiving the vaccine because he was considered an essential worker. To this day, the blood clot has left these individuals with lifelong aftereffects.

The plaintiff stated in his complaint that he received an email from the Department of Education urging him to get vaccinated and that he was not informed of the possible side effects of the drug; he also emphasized that he was unable to choose which vaccine to get. The ruling sided with the plaintiff, and the judge upheld the claim in full, recognizing the medical consequences suffered after vaccination as an occupational accident. This is the first ruling of its kind in Spain, although the sentence can be appealed.

The General Social Security Law establishes that an occupational accident is one that occurs, among others, "in rescue actions and in other similar actions, when both are connected with work." The ruling emphasizes the idea of rescue that spread socially during those months, and which, as a public school teacher, this person should have adhered to.

In his lawsuit, the professor argued that he responded to the authorities' "call to social responsibility among citizens" for public servants to be vaccinated, construing this call "as an ethical, moral, and legal obligation" and as "a collective duty and individual responsibility in the face of the chaotic situation" caused by the pandemic.

The Department of Education argued that the vaccine was not mandatory and that this teacher was vaccinated voluntarily.

However, the judge admits that "the protocols do not definitively and directly determine the voluntary nature of vaccination, but the provisions of Article 14 of the Workers' Statute must not be overlooked," which requires workers to "observe legal and regulatory health and safety measures in their work."

NEWS

IL COWORKING & LEGAL SERVICES, featured at the Madrid Business Forum

This March, we had the opportunity to participate in the so-called "1pm Networking Events," a highly successful initiative promoted by the Madrid Business Forum. This organization aims to boost economic activity in the Community of Madrid and join forces to defend the interests of Madrid's business community. It currently has more than 350 members.

Our coordinator, Desislava Ivanova Borisova had the opportunity to share with the businesspeople attending this event the particularities of IL Coworking & Legal Services and our commitment to offering a space that aims to create a community of coworkers that promotes networking, in order to contribute to its growth.