ECONOMIC ANALYSIS

Which sectors account for the increase in productivity in Spain?

Productivity per hour worked has recovered the growth experienced in the 2014-2018 period, as a recent BBVA Research report reminds us. After a worrying stagnation during the two years prior to the pandemic, this indicator has returned to advance at a rate of 1.1% per year between 2022 and 2024. To analyze productivity, it is useful to look at how much of its increase is due to movements between sectors or within the sector. In other words, the improvement could be occurring either because there has been a redirection of resources from the least productive areas to the most efficient ones, or because within each sector there has been a greater advance in productivity.

In this sense, according to the aforementioned report, it is noteworthy that one of the trends in recent years is the redistribution of employment towards more productive activities. On the one hand, the proportion of hours worked in low-productivity sectors such as commerce, transport and hospitality has fallen, from representing 31.6% of the hours worked in 2019 to 30.3%. In the same direction is the decrease in the time dedicated to producing artistic and recreational activities. Productivity in these sectors is, at most, 50% of that observed in industry.

The sectors that benefited from this trend were other services with higher productivity. Here, two are worth highlighting. On the one hand, employment in health, education and public administration has increased more than the rest. The other beneficiaries have been services related to information and communications technologies, which have gained 0.8 pp in the weight of hours worked, and professional services (0.2 pp). This is a welcome change, since they are two of the sectors with the highest levels of productivity in the Spanish economy.

In any case, the greatest impact on productivity growth has not been due to this relative redistribution of resources, but to improvements observed within each sector. Again, the most paradigmatic case has been that of trade, transport and hospitality, where productivity per hour worked has increased by 7 % since 2019.

In addition to the exit of less productive companies, the recovery has been used to invest in digitising and automating processes, as well as increasing the supply of higher quality products. The deseasonalisation of tourism has allowed the use of installed capacity in low season or in regions with less influx of travellers, also contributing to improving productivity. To this must be added the good performance observed in the professional services sector.

Finally, the role of industry should be highlighted. Since the beginning of the crisis, GVA per hour worked in the sector has increased by 11% in Q3Q, which compares positively with what was observed during the same period in the eurozone. In part, this may reflect the different impact that the increase in energy prices has had in countries such as Germany, compared to what was observed in Spain. Of particular importance may be the role played by the increase in investment in renewable energy and its effect on company costs.

Looking ahead, some doubts remain as to the sustainability of this model of labour productivity growth. On the one hand, the implementation of new fiscal rules in the Eurozone will limit the growth of employment in public administrations. On the other hand, there are doubts about how much further progress can be made in the deseasonalisation of tourism, in an environment in which high-season occupancy in high-traffic areas is already 100% TP3T. Investment, key to improving productivity, continues to show a disappointing performance in the recovery period. Likewise, it is expected that construction will begin to play an increasingly important role in growth given the need for housing.

In short, productivity per hour worked has increased partly because more efficient sectors have gained weight in employment, but mainly because service companies (many related to tourism), together with industry, have shown a differentially positive evolution compared to other expansions. In the coming months, reforms that can ensure the reactivation of investment and ensure the availability of qualified labor will be key.

COMMERCIAL STRATEGY

Keys to selling more and better

• The psychological factor in purchasing decisions is of vital importance for companies.

There is no doubt that there are many factors that affect our personality and our way of behaving. In this sense, both memories and thoughts condition the decisions we make every day, something that helps us to be who we are.

For this reason, companies that market products or services tend to take into consideration some fundamental keys to encourage the most instinctive "I", with the aim of improving their commercial position, through the techniques that encompass so-called psychomarketing or also known as neuromarketing.

Knowing how to attract customers and how to sell more and better is essential for any business that wants to grow in an increasingly competitive market, and to meet this premise, although sometimes you don't realize it, sellers use psychological tricks to achieve this.

What does it take to sell more?

There are a number of psychological strategies or tricks to convince your target audience and thus sell more. However, you must meet a series of requirements without which these techniques will not work:

• Know your product: You must be a specialist in the product or service you sell and know it inside out: its weaknesses, strengths, characteristics, differentials compared to the competition, value proposition for the customer, etc.
• Define the steps to follow: Getting a meeting with the client or potential client is an important step, but not the only one. If you don't have a plan, and don't know what stages of the process you want your client to go through, it will be very difficult to help them move forward in the sales funnel.
• Trust yourself: If you don't believe you can sell the product or service, why should anyone take you seriously? Knowing the product, having a plan and understanding the needs of your audience are factors that will help you achieve the confidence you require.

Does selling more mean neglecting quality?

You have probably heard the phrase “sell more for less”, which implies that if you sell more, you must do so at a lower cost and therefore reduce the quality of the product or service. The first mistake in this phrase is working on the false idea that quality and number of sales cannot go hand in hand. On the contrary, the higher the quality of your product, the more sales you will get.

How to sell faster and better with psychological tricks?

• Use curiosity. Generate expectations around a launch. Revealing a new product will spark the interest of potential customers.
• Appeal to scarcity and urgency. The feeling of a lost opportunity, of something slipping through your fingers or not going to be repeated, is a very effective selling trick.
• Set attractive prices. The brain likes certain price formats. In fact, prices like 9.99 euros lead to more sales than if you set your price at 10 euros.
• Use your audience's language. When interacting with another person, paying attention to how they communicate can be an effective strategy to keep the conversation flowing.
• Present your products in an attractive way. There's no point in offering good prices if your customers don't see them. The presentation of your products is essential to attract consumers.
• Use the word “free” as it has the ability to generate a spontaneous reaction in people. Employ strategies such as freebies associated with your product.
• Offer exclusive attention. Many companies classify their customer groups according to their commitment to the company and purchasing capacity, under the term VIP clients.

BUSINESS MANAGEMENT

How to successfully approach the negotiation of a commercial contract

We often believe that when we reach an agreement in principle with a third party, the work is already done, but reality tells us that at that moment a fundamental phase for the success of the operation begins: the negotiation and drafting of the contractual agreement between the parties. The best drafted contracts will clearly explain the rights and obligations of all parties and will avoid undesirable situations in the future.

At this point, it is clear that having good legal advice to guide and support you in drafting a contract is essential for the operation to be carried out with full guarantees of legal security. For this reason, in IL Coworking & Legal Services We have considered it essential to have the strategic support of the law firm Acountax Madrid, with the firm desire to offer you a comprehensive and professional advisory service in this area, if you so require.

Notwithstanding this, in this article we will refer to some fundamental aspects that you should take into consideration when approaching the negotiation and drafting of a commercial contract.

Indeed, before proceeding to draft and sign a contract of this nature, it is essential to have previously negotiated all the elements that it must contain. In this regard, you should pay attention to the following key points:

• Break the negotiation down into parts. The more complicated the contract, the more difficult it is to negotiate everything at once.
• Take control of the negotiations and propose the initial draft of the contract. This approach gives you the power to lead the agenda and better frame the negotiations in your favor.
• Remove emotions and no matter the nature of the contract, negotiations must be considered strictly business.
• Allow for compromises. You never want the other party to feel like they are being forced into a disadvantageous agreement. If one party feels they are getting a raw deal, they may back away. Leave room for possible compromises.

If your negotiation strategies have brought you to a successful conclusion and the time has come to draft the contract, you must also take into consideration a series of fundamental aspects:

1. Identify the parties well Regardless of the type of contract, the first thing to emphasize is the identification of the parties. Proper identification will limit responsibilities and avoid scenarios of non-compliance.
2. Make it easy to read without being ambiguous. A contract should be easy to read, so as a general drafting tip, avoid using complex or unnecessarily technical terms as much as possible.
3. Think of possible scenarios that you would like to be involved in. It is advisable to think of all kinds of possible scenarios in which one of the parties could seek, take advantage of or generate conflicts.
4. Clarify payment methods. It is very important to take care of the way in which payment methods, amounts, dates or the conditions under which goods and services are expected to be received are specified.
5. Adequately define the rights and obligations of each of the
6. Specify the duration of the contract and the possibility of extensions.
7. Clarify the penalties, compensation or sanctioning regime for possible
8. Identify the submission clauses, in order to resolve possible conflicts, either through judicial or arbitration.

If you take these issues into account, among others, it will be easier for you to successfully complete the transaction. However, we insist that at this stage of development of your commercial activity, having proper legal advice is essential so that the terms and conditions of the contract to be signed are as close as possible to your wishes and rights.

ENTREPRENEURSHIP

Grants for entrepreneurship in the rural world in 2025

Entrepreneurship in rural areas is an opportunity to revitalize less populated areas, generate employment and support sustainable development. In 2025, various grants and subsidies are available for those who wish to launch their project in this environment.

The rural world offers endless opportunities for those who wish to undertake a business with an innovative, sustainable and committed approach to the territory.

It is not necessarily a question of returning to traditional jobs carried out in rural areas, but rather of modernising methods and techniques that contribute to making rural areas more technical, offering new services or completely renovated traditional services.

Below we summarize the key programs to boost your business in rural areas.

1. LEADER (EAFRD Funds): LEADER funds, managed through Local Action Groups, provide funding for innovative projects that promote the economic and social development of rural areas. Subsidies of up to 50% of the investment can be obtained.
2. Digital Kit Aids for SMEs and self-employed: This government program provides economic bonuses for the digitalization of rural businesses, covering tools such as websites, e-commerce and business management.
3. Grants for young farmers: The Ministry of Agriculture, Fisheries and Food provides aid to young people who wish to enter the agricultural sector. This includes initial financing and tax benefits.
4. ENISA Rural Entrepreneurship Support Programme: ENISA offers collateral-free participatory loans for entrepreneurs in rural areas, with flexible conditions and interest rates adapted to the evolution of the business.
5. Recovery, Transformation and Resilience Plan: Within this plan, the Government allocates European funds to rural projects that promote sustainability, digitalisation and the circular economy.
6. Grants for women entrepreneurs in the rural world: The Women's Institute and other entities offer specific assistance for women who start businesses in rural areas, with additional incentives if they generate female employment.
7. Agrotech program for innovation in the agri-food sector: This programme supports projects that combine technology and agriculture, facilitating the modernisation of the agri-food sector in rural areas.
8. Aid for energy efficiency and renewable energies: Several autonomous communities offer subsidies for the installation of renewable energy in rural businesses, reducing costs in the long term.
9. Financing through banking entities: Various banking institutions offer special credit lines to self-employed workers and small businesses in rural areas.
10. Regional and local subsidies: Each autonomous community and local government have specific programs to support entrepreneurship, which include tax exemptions, bonuses and personalized advice.

More and more people are interested in rural entrepreneurship. Many of them come from cities, where they leave in search of a quieter and healthier way of life, but many other rural entrepreneurship initiatives come from those who have always lived in rural environments. In all cases, it is crucial to have financial support so that the strategy can be carried out successfully and with minimum guarantees of viability.

CURRENT TAX

The Treasury now allows you to download the IRPF certificate for this year's Income Tax campaign

According to the taxpayer calendar planned for this year, there is just over a month left until the Income Tax campaign begins, which is why taxpayers must obtain all the necessary updates to face this annual appointment with the Treasury.

In this regard, the Tax Agency has already begun to publish information of various kinds in order to facilitate this tax procedure for taxpayers, such as the IRPF certificate.

This certificate contains information summarizing the taxpayer's tax situation with respect to this tax.

With your data, it is possible to go to the draft of the declaration and know if everything is in order or if there is a box with incomplete or incorrect data, hence its importance.

This is why the Treasury has informed taxpayers how to download the IRPF certificate.

The first step is to access the Tax Agency website.

On the home screen, taxpayers only have to scroll down to the bottom section, to the 'Direct Access' section and, specifically, to the 'Tax Certificates' service, which allows them to "request and download documents that prove their tax status."

In this section, you must click on the 'Tax returns' service and then on 'Tax certificates. Issuance of tax certificates. Personal income tax'. Then, in the 'Transactions' section located at the top, you must click on 'Request'.

The Treasury explains that, to obtain the certificate, it is possible to identify yourself in three different ways:

• With Cl@ve Móvil (formerly Cl@ve PIN).
• With an electronic ID or digital certificate (this is how it can be obtained).
• With the reference number, which is obtained from the data in box 505 of last year's Income Tax Return.

Once the identification method has been chosen, it is necessary to check that all the information about the procedure and the applicant is correct. The Treasury reminds that the fiscal year for which the certificate is required must be indicated. In the case of Income Tax 2024-2025, it would be for the fiscal year 2024. To complete the procedure, click on 'Validate request' and, once all the data has been reviewed, on 'Sign and send'. Afterwards, the taxpayer can download the certificate in PDF format by clicking on 'Download'.

For the first time, rent payments will be made possible through Bizum

The Ministry of Finance is considering adding to the Income Tax Campaign, which will begin on April 2, payment by credit card under secure e-commerce conditions or through Bizum. This is clear from the project submitted to a public hearing and information on the personal income tax and wealth tax declaration models, referring to the 2024 fiscal year.

The text details that, in the event that the declaration results in a payment, a "significant improvement" is introduced in terms of payment methods: in addition to traditional payment methods, direct debit, electronic payment by direct debit or Full Reference Number (NRC), payment document, in this income tax campaign payment by credit card is added under secure electronic commerce conditions or through Bizum.

Unique system to rectify, modify or complete

In order to continue making progress in taxpayer assistance and in improving tax management, the possibility of establishing a single system for correcting self-assessments is introduced, regulating for this purpose the new figure of the corrective self-assessment.

This new figure will replace, in those taxes where it is established, the current dual system of complementary self-assessment and request for rectification.

In addition, to facilitate electronic filing, a new service will be offered this year to those taxpayers who do not have to make any changes to the draft provided to them, so that they can file their return with much simpler navigation.

TODAY COMMERCIAL

Pay attention to the draft Law on collective actions for the protection of consumers and users

The Council of Ministers has approved the submission to Congress of the Bill on collective actions for the protection and defence of the rights and interests of consumers and users. This is a regulation that complies with Directive (EU) 2020/1828 of the European Parliament and of the Council and puts an end to the current partial and dispersed regulation on this matter by creating a specific judicial procedure.

The reform aims to strengthen the position of consumers, allowing claims against a natural or legal person to be made, collectively, by an entity legally authorized to defend the rights of consumers and users.

The provision legitimises both the Public Prosecutor's Office and the so-called authorised entities - consumer associations, bodies of the General State Administration, autonomous communities or municipalities competent in matters of consumer protection - to direct collective actions against any type of infringement that harms the collective interests of consumers and users.

The most relevant changes to the Law are those affecting cases in which financial compensation or reparation can be claimed before the courts, since the process will bind all persons who are the holders of the rights or interests injured, unless any of them expressly requests disengagement.

Exceptionally, in cases where the amount claimed exceeds 3,000 euros per beneficiary, the court may establish a system in which the outcome of the legal proceedings only affects consumers who have expressly adhered to it.

In order to ensure the publicity of this type of procedure, each of them will have an electronic platform, so that each affected party has access to all the information and can express their desire to join or disassociate themselves from the collective action.

There are two types of class actions: injunction actions and compensatory actions, which include actions for damages, repair and replacement of goods, reimbursement or reduction of price and termination of the contract. These actions can be exercised in respect of any type of infringement that has harmed the collective interests of consumers and users and may be national or cross-border depending on the State in which the plaintiff entity is located.

It is established, as a mandatory requirement prior to the civil-commercial process, the attempt to resolve the controversy through non-jurisdictional means

• Until now, this was optional, but as of April 3, in order for a claim to be admissible, the plaintiff must necessarily resort, prior to filing it, to some appropriate means of dispute resolution.

Organic Law 1/2025, of January 2, establishes, for judicial proceedings initiated after April 3 of this year, the obligation for the parties to the litigation, as a procedural requirement prior to the judicial route, to try to reach by themselves or with the help of a neutral third party (mediator, conciliator, etc.) a solution to the conflict by extrajudicial means.

Thus, for the claim to be admissible, the plaintiff must, prior to filing it, resort to some appropriate means of dispute resolution, the following being considered as such in all cases:

1. Specifically, this procedural requirement will be deemed to be met when the negotiating activity is carried out directly by the parties or, under their guidance and with their consent, between their lawyers, as well as when the parties have resorted to a collaborative law process.
2. Mediation.
3. Conciliation, through a private conciliator; a notary; a registrar; a lawyer of the Administration of Justice; or a justice of the peace.
4. Neutral opinion of an independent expert.
5. Formulation of a confidential binding offer.

CURRENTLY WORKING

Starting in April, the rules for active retirement will be modified

Royal Decree-Law 11/2024, of December 23, to improve the compatibility of retirement pensions with work, has introduced important changes to the active retirement system, which is scheduled to come into force on April 1, 2025. It should be remembered that the enjoyment of contributory retirement is compatible with the performance of any self-employed or employed work by the employee (whether full-time or part-time). In addition, it is a formula that can be applied in the case of workers who are currently on the payroll of your company or also in the case that you hire a new "senior" worker.

The basic requirements for accessing active retirement remain unchanged:

• Having reached the ordinary retirement age without applying bonuses or advances.
• Having contributed for a minimum of 15 years, of which at least 2 must be in the last 15 years before retirement.
• At least one year must have passed since the worker reached the ordinary retirement age until the event giving rise to the pension.

Among the main changes that will be applied from April is that the pension compatible with work will no longer be a fixed 50% and will now be variable, depending on the years in which retirement has been delayed:

Active retirement requires an agreement between the company and the employee. In other words, neither the company can force an employee to use this formula, nor can the employee demand it from the company. If there is an agreement, access to retirement compatible with the pension can only occur once the worker has reached the ordinary retirement age and the rest of the requirements that give the right to receive the pension are met (a minimum period of 15 years of contributions, of which at least two must be included within the 15 years immediately prior to retirement).

The courts recognise the right to eight weeks of paid parental leave

The Administrative Litigation Court No. 1 of Cuenca has issued the first final judgment in Spain that recognises the right to enjoy 8 weeks of paid parental leave, included in a European directive that Spain has not yet implemented. The ruling also grants compensation of €30,000 for not having given her the opportunity to enjoy it. The Integrated Care Management (GAI) of Cuenca denied this right to a professional, citing the "lack of regulatory development" of the European standard in Spanish legislation.

“The applicant does not have to suffer the consequences arising from the delay in the regulatory development of the Directive,” the ruling states. In this sense, the Cuenca Integrated Care Management did not give the applicant the option of taking the leave, even without pay, even though it was mandatory to grant it.

The judge in charge of the case stresses the binding nature of European regulations on the reconciliation of family and professional life.

According to him, the provisions of the legislation “are unconditional, sufficiently clear and precise and attribute rights to individuals”. Furthermore, it is undeniable that the Spanish State has not transposed the directive before the corresponding deadline”.

NEWS

IL COWORKING & LEGAL SERVICES, present on Radio Libertad

Our CEO, Manuel Lamela Fernández, spoke this February on the Are Business programme on Radio Libertad, where, once again, we made a determined commitment to publicise our effective support for entrepreneurship.

Lamela stressed the importance of having an expert ally to undertake with full guarantees and in maximum conditions of legal security, which is why IL COWORKING & LEGAL SERVICES, Through our partner Acountax Madrid, we play a key role in providing legal, tax and accounting advice to our clients, not to mention the support services we offer in secretarial and administrative management matters.

Thanks to this support, we will help you make well-informed strategic decisions in order to avoid unnecessary risks. In this regard, Lamela stressed that preventive advice is the best tool to avoid future problems. Thanks to this support, entrepreneurs can focus on growing their business, leaving administrative or legal burdens in the hands of experts.

In IL COWORKING & LEGAL SERVICES We help startups, entrepreneurs and SMEs to offer a workplace where positive synergies are created, while providing you with support tools to support you in your daily activities.

Remember that you can contact us without obligation with any questions or needs you may have. You can count on us.