WE CONTINUE TO GROW

We strengthen our alliances with the business and professional community

Traditionally, the concept of coworking is associated with freelancers, entrepreneurs and startups. However, we are aware that this type of workspace is becoming more universal and is managing to conquer more types of companies, both SMEs and large companies or multinationals.

Aware of this reality, in IL Coworking & Legal Services We have made a commitment to get as close as possible to our business and professional community, which is why we are delighted to announce that this September we have signed an exceptional cooperation agreement with one of the most significant platforms in defence of businessmen and entrepreneurs in Madrid.

Indeed, we have launched a strategic collaboration agreement with Madrid Foro Empresarial. This agreement will allow us to offer entrepreneurs, managers, professionals and institutions associated with this important organization access to a discount on our services, without forgetting other actions that we will jointly promote to promote networking, dissemination and training, with the ultimate goal of strengthening competitiveness and the exchange of knowledge in the business environment.

By joining forces, both IL Coworking & Legal Services As Madrid Business Forum, they are providing their members with unique access to new growth opportunities, in a space that encourages flexible work, innovation and business connections.

And this is because we want to insist on our sincere desire to offer the best possible logistical and administrative support. For this reason, IL Coworking & Legal Services We offer a wide range of services, full of possibilities, ranging from the use of individual work spaces or meeting rooms, to complementary services in the area of secretarial support, correspondence management, and the registered office of your company.

All this without forgetting an initiative that is becoming a reference among our clients and which is undoubtedly a highly competitive value-added product, consisting of legal, accounting and tax support services, at especially advantageous prices to make them more accessible to everyone.

In short, we continue to grow with the desire that the professionals and businessmen who come to our facilities also grow and feel as satisfied as possible with the services we provide them.

ECONOMIC SITUATION

Spain's economy is expanding faster than expected

The Spanish economy grew by 0.81% in the second quarter of this year, according to the latest data published by the National Institute of Statistics (INE) at the end of September. This percentage shows that the economy continues to grow at a relatively fast pace and is beating all forecasts.

In addition, gross domestic product (GDP) grew slightly more than expected in the first quarter of the year, which, according to the latest revision, is estimated at 0.91 TP3T. Thus, year-on-year growth now stands at 3.11 TP3T, compared with 2.51 TP3T the previous year. Domestic demand contributed 2.4 points and external demand contributed 0.7 points.

In inter-quarterly terms, of the 0.8 points that the Spanish economy grew between April and June, 0.7 correspond to domestic demand and 0.1 to external demand.

On the demand side, household consumption (1%), public administration consumption (0.7%) and investment (0.3%) grew in particular.

While exports of goods and services increased by 0.71 TP3T, imports increased at a rate of 0.61 TP3T.

As regards supply, only the primary branches decreased, registering -2.91 TP3T, compared to 4.41 TP3T in the first quarter of the year. Industry grew by 1.11 TP3T quarter-on-quarter, with manufacturing slowing its pace by seven-tenths, to 1.51 TP3T, and services advanced by 1.21 TP3T.

Compensation, employment and hours worked are all up. Salaried employees' compensation grew by 7.81% year-on-year and average compensation per equivalent position by 5.21%, increases that remain at the quarterly rate of 1.71% and 1.61%, respectively. The number of full-time equivalent salaried employees is also up by 2.51% and the number of full-time equivalent jobs by 2.11%, if we look at the year-on-year rate. From one quarter to the next this year, the variations are just a few tenths of a percentage point.

Why is Spain growing much faster than Europe?

Spain's economic growth in recent years has been higher than the Eurozone average, and this can be explained by a combination of structural and cyclical factors that have favoured the dynamism of key sectors such as tourism, employment and services, which, in turn, are boosting domestic demand and investment.

First, tourism has played a crucial role in economic growth. Spain remains one of the world's top tourist destinations, and after the pandemic-induced halt, international tourist arrivals have reached record numbers. This tourism boom has positive effects on many sectors, especially hospitality, transport, retail and construction, contributing to GDP growth.

Another relevant factor is the positive dynamics of the labour market. Economic growth in Spain has been accompanied by strong job creation, which reinforces domestic consumption. At the sectoral level, the services sector has been one of the most important drivers of growth in Spain, surpassing the industrial sector. This is partly due to the fact that the Spanish economic structure is more oriented towards services, especially tourism, hospitality, trade and financial activities. In the context of post-pandemic recovery, services, which depend more on mobility and personal contact, have experienced a significant rebound.

Finally, another factor that explains the growth differential with respect to the Eurozone average is that Spain started from a lower base after the 2020 financial crisis and the deep recession. The impact of the pandemic, although severe, left the Spanish economy in a situation where the potential for recovery was greater due to the room for improvement compared to more consolidated and diversified economies such as Germany or France. This has allowed Spain to grow at a faster rate than other countries in relative terms.

FINANCING

Tips and keys for entrepreneurs looking for the most suitable financing for their business

For any company, and especially for start-ups, funding is the fuel that allows them to continue moving forward. Sometimes, it also provides the push that a good business idea needs to materialize. Fortunately, the range of financing possibilities for these emerging technology-based companies is wide: it ranges from banking, the traditional option, to the participation of venture capital companies.

It is also true that each stage of a company's life requires a type of financing and must always be aligned with the company's growth objectives. Entrepreneurs can start from their own resources and those of their environment, and then access incubators and accelerators, where they will grow with the help of experts and under the auspices of large companies. They can also turn to the formula of business angels, individual investors who guide a startup on its path and, when they have proven that their business idea works, rely on venture capital or risk capital companies that will give it a boost so that it can become consolidated.

Notwithstanding the above, bank financing remains a widely used option among startups, especially those in advanced stages, when they have a track record and guarantees to support the credit. 20.91% of small and medium-sized enterprises (SMEs), including startups, turned to an entity to obtain resources in 2023, according to the XIII Report on SME Financing in Spain, prepared by the Spanish Confederation of Reciprocal Guarantee Societies (Cesgar -SGR). In addition, there are banking entities that have specific financing lines for startups.

Startups also have access to loans from public entities such as the Official Credit Institute (ICO) or the Innovation Company SA (Enisa), which offer attractive conditions, making the guarantee policy more flexible, and may also have long grace and maturity periods.

Tips for the new entrepreneur

• The closest environment as a guarantee of trust. Contributing your own money to the business is the greatest sign of trust that an entrepreneur can offer to potential investors. The same goes for the other great formula that an entrepreneur can resort to at the beginning, known as the three F's, which are friends, family and fools.
• Focus on smart money. In the business world, smart money refers to investments that come with professional advice and access to networks of contacts. This type of investment is essential in the early stages of a company's development. It comes from incubators, organizations that help shape business ideas, and accelerators, which are geared toward more advanced stages of startup growth. The business angel is another type of smart money. This is a private investor who provides capital, contacts, and acts as a mentor.
• Consider the needs of the buyer. The opinion of the buyer is essential for the survival of a company, but even more so if it is taking its first steps, such as a startup, which is precisely characterized by offering revolutionary solutions through technology to consumer problems.
• Retaining control of the company. The entrepreneur faces the risk that his or her stake in the company's capital will be diluted as he or she allows access to new investors. Among the financing options, there are some that do not dilute control. This is the case with bank financing, public financing and subsidies. However, the transfer of control will not be the same at all stages of the startup's development and the entrepreneur can calibrate it.

STARTUPS

Profile of the Spanish startup: seven workers, in Madrid or Barcelona, founded by men and with its own technology

• It is confirmed that most of these businesses are based on software, artificial intelligence or applications.

Spanish startups are made up of teams with an average of seven members, most of them founded by two people, of whom, in 73% cases, are men. They are also urban-based companies, based mainly in Madrid or Barcelona, whose clients are large companies and which are exporting, at an increasing rate, especially to countries in the European Union. This is the profile that emerges from the latest study 'Analysis of a new generation of startups in Spain and Portugal', promoted by CaixaBank and with the collaboration of the Entrepreneurial Initiative Center of IESE Business School.

The report, which was prepared based on information obtained from more than a thousand companies competing for the 17th edition of the Emprende XXI Awards, also concludes that the proportion of female entrepreneurs who have founded a startup remains at 27%, with 12% of companies launched by teams made up solely of women.

As for job creation, startups expect to reach, over time, an average of 13 employees per company, which could translate into the creation of some 13,489 jobs in 2024, according to the report. It is also noteworthy that 38% of the firms that participated in the sample have two founders and just over 37% have three or more founders.

Barcelona (with 17%) and Madrid (with 16%) concentrate the creation of this type of companies, but the truth is that the study confirms that the Valencian Community and Andalusia show significant growth, with 10% and 9% of these companies each.

The study also highlights that the fact that these teams are based primarily on technological innovations "has allowed them not only to improve their products and services, but also to optimize operations and expand markets."

This technological element has fostered greater territorial diversity, which has led to the emergence of "new talent attraction centres in cities such as Valencia, Bilbao and Malaga."

As regards the funding formulas for startups, the participation of patrons, also known as 'business angels', in the financing of these emerging companies has practically doubled compared to the report prepared the previous year, going from 12% in 2023 to 23% this year.

Equity funding has also increased from 571% to 701%, indicating a strong commitment from founders and their inner circle. Overall, the average funding received by startups has increased by 111% to 575,000 euros on average.

The source of funding varies, with a prominent role for business angels in emerging technologies such as blockchain and hardware, and venture capital in sectors such as crypto and cloud. For their part, accelerators and incubators are betting on technologies such as extended and augmented reality, as well as crypto and blockchain.

The study also shows that large companies are clients of the 76% of startups, while a third of companies are oriented towards other startups and administrations.

Overall, these firms have increased their international sales by 161%3T, with 621%3T of companies exporting abroad, compared to 461%3T the previous year.

The European Union (551 TP3T) and Latin America (241 TP3T) remain the main markets, followed by the United States and Canada (161 TP3T).

 

E-COMMERCE

90% E-commerce businesses lose sales by not managing returns well

• Refunds are a critical issue for small e-commerce businesses.
• Return policies should be clear, accessible and easy to understand.
• Optimizing the returns process may seem like a complex task, but it is a key investment to improve profitability.

One of the challenges faced by small online businesses in the e-commerce sector is to effectively manage the returns policy, since it is an issue that directly affects the possibility of customer loyalty.

This is one of the conclusions reached by Reveni's report on e-commerce, concluding that 90% of customers would not buy from an online store again after a bad return experience, which highlights the importance of this process in customer retention.

Further confirming the importance of this issue is the fact that, according to the report, customers are not only looking for a smooth shopping experience, but also flexible options when they need to return a product. Thus, 93,88% of those surveyed said they would not make a purchase if the return policies were non-existent or complicated. This means that offering a flexible process is not optional, but a necessity for any e-commerce that wants to prosper.

The main conclusion to be drawn from this reality is that return policies must be clear, accessible and easy to understand. This means offering reasonable deadlines, not charging for returns in most cases and providing several options for returning products, such as home collection or convenience points.

One of the most common reasons for returns is that the product received does not meet the customer's expectations or does not correspond to the description on the website.

In sectors such as fashion, incorrect size fit is the main reason for returns. But, in addition, 15,14% of customers buy several sizes of a product to try them at home and then return the ones that do not fit them, which increases the cost of reverse logistics.

To reduce returns, it is essential to improve the presentation of the product in the online store.

Detailed descriptions, high-quality photos from different angles, and even tools like virtual fitting rooms can help customers make more informed purchasing decisions and avoid unnecessary returns.

Another key aspect that influences customer satisfaction is the time it takes to receive a refund after returning a product. In this regard, 44% of consumers wait between four and seven days to receive their money back, which can lead to frustration and a negative experience. Implementing instant refund systems can be an effective solution.

The truth is that an effective refund policy improves customer satisfaction. In fact, 98% of customers who enjoyed an instant refund stated in the study that the experience exceeded their expectations. For small businesses and freelancers, adopting this measure can make a big difference in customer retention.

In addition to refunds or returns, we must not forget the possibility of exchanging the product for another. According to the report, 77% of consumers prefer an exchange to a return. However, many online retailers have not yet implemented this option, which can create friction in the customer experience.

CURRENT TAX

The Treasury is reviewing the aid received by the self-employed during the pandemic

• Of the 4 billion euros in aid granted, it is estimated that some 505.5 million euros were given to self-employed workers who did not meet the requirements.

The Spanish Tax Agency has begun to review the income tax returns of taxpayers who received aid for extraordinary cessation of activity during the Covid pandemic.

In this case, it refers to self-employed workers who accessed state subsidies and who did not meet the requirements or who had not actually suspended their economic activity. The State Agency for Public Administration (AEAT) has detected that a total of 281,000 self-employed workers may find themselves in this situation.

The health and economic crisis led to the granting of these subsidies to 1.5 million self-employed workers, which amounted to a total of 4 billion euros. Of this total, some 505.5 million would have been delivered to
self-employed workers who did not meet the requirements.

Therefore, the Treasury is now reviewing whether these deductions applied in the Income Tax return are genuine and if they are not, the public body will send a notification to taxpayers so that they return the money received.

The reason behind these reviews is the report published by the Court of Auditors on December 20, 2023, which revealed "significant breaches" in aid. Therefore, self-employed workers who received financial aid to deal with the Covid crisis and have any irregularities in the conditions will receive a notification of

The AEAT will send requests to review the Income Tax return for the years 2020, 2021 and 2022. This will require redoing them or returning the money where appropriate. In this way, self-employed workers who have received a notification from the Treasury will have to review their Income Tax return for the years indicated. In many cases, taxpayers will have to redo their returns to adjust them to current regulations.

If it is proven that they did not meet the requirements to receive aid, they will be obliged to return the amounts received.

One of the key points is that the aid received for the cessation of activity should be taxed as "income from work". If this was not declared correctly, the Treasury will request the relevant adjustment.

It should be noted that, in the event that there are self-employed professionals who receive the aforementioned letter from the Treasury and who did meet the requirements required to receive the aid, they will be able to process the corresponding claim. In this regard, it is also noteworthy that the AEAT may notify the refund of the money because the requirements are not properly accredited, but these can be duly justified by the affected self-employed professional.

Delays in processing are the most common complaint taxpayers make about the Tax Agency

The Ministry of Finance has published the latest Report of the Council for the Defense of the Taxpayer, corresponding to the year 2023. The Council for the Defense of the Taxpayer is the advisory body of the State Secretariat of Finance for the best defense of the rights and guarantees of the citizen in their relations with the state tax administration. It prepares an annual Report on the complaints and suggestions received and processed. The delay in processing is the issue that causes the most complaints against the Tax Agency (Aeat), with a total of 912 compared to 7,044 complaints reflected for all concepts.

In addition to these complaints, there are another 343 from the Directorate General of the Cadastre, 45 from the Directorate General of Taxes (DGT) and 37 from the Economic and Administrative Court (TEA). In total, 1,337 complaints have been registered for delays in processing. Also particularly noteworthy are the complaints regarding the appointment, which in total have represented a total of 676, of which 655 corresponded to the Aeat and 21 to the Cadastre.

In this regard, the Taxpayer Protection Council recalls that the Aeat is the main or one of the main providers of citizen service, with an approximate figure of five million taxpayers annually served by appointment, which represents a percentage of complaints that remains stable, over the years, in a range between 8% and 11%, although with an increasing trend since 2022.

However, not all of these complaints question the appointment system, but rather most of them refer to deficiencies in its specific operation. Complaints involving a rejection of the system itself account for only 2,24% of the total.

TODAY COMMERCIAL

Two years of the Bankruptcy Law: review of its application and pending challenges

Two years have passed since the new Bankruptcy Law came into force, which is why the Professional Association of Bankruptcy Administrators and Experts in Restructuring and Insolvency (ASPAC) has taken stock of the reform, which brought with it key changes in business restructuring and the administration of micro-enterprises, has achieved significant progress, although important challenges remain.

One of the most notable aspects of the reform is the introduction of restructuring plans, which seek to avoid bankruptcy proceedings through negotiations between debtors and creditors. “Although the number of approved plans is still modest, it has been shown to be a powerful and flexible tool that allows companies to overcome situations of insolvency without having to resort to traditional bankruptcy proceedings,” says Diego Comendador, president of ASPAC.

Likewise, ASPAC has expressed its concern about the implementation of special procedures for micro-enterprises, regulated in the third book of the Law. Although the reform was intended to offer a more agile and economical process for these small companies, the lack of an operational telematic platform has delayed its deployment. “The problem lies not only in the lack of agility, but in the exclusion of the bankruptcy administrator, which compromises the transparency and efficiency of the process,” warns Comendador.

ASPAC points out that, instead of reducing costs, this system transfers the costs of the process from creditors to the State, which creates a false impression of savings. In this regard, ASPAC stressed that it is essential that these procedures include the participation of bankruptcy administrators to guarantee adequate control and prevent debtors from managing the liquidation of their companies without professional supervision.

Electronic invoicing breaks records in Spain before it becomes mandatory for companies and self-employed workers

In the medium term, all economic agents in Spain, from the self-employed to large companies, will have to use electronic invoicing. Pending final approval of the technical regulations for mandatory electronic invoicing promoted by the Create and Grow Law, everything indicates that during 2026 and 2027 this format will be mandatory in any commercial transaction in Spain.

However, this upcoming legal obligation is already clearly beginning to be felt in Spanish companies and in their adoption of e-invoicing, and its implementation has continued to grow in recent years.

This is according to a study by Seres, a provider of purchasing management solutions. This report, which counted the business-to-business (B2B) transactions of 700,000 companies with Spanish VAT numbers, shows that, in 2023, the use of electronic invoicing has broken growth records since 2015. More specifically, the total volume of electronic invoices issued in Spain in the B2B sector amounted to 460.3 million invoices, which represents an increase of 35% compared to 2022.

In addition, the study details the positive effects derived from the use of electronic invoicing in terms of sustainability and the environment, as well as the advantages in saving time, material and costs that it represents for companies. Specifically, the use of electronic invoicing in 2023 contributed to savings of more than 3,572 million euros in management costs in the B2B environment. Likewise, this translates into savings in terms of paper use equivalent to 25,678 pine trees. Meanwhile, time savings also grew by 35.3% compared to 2022, which represents a time in working hours equivalent to 985 working years.

The Community of Madrid once again leads the list of the most active autonomous communities in terms of the volume of electronic invoice issuance, with 37,97% of the total at national level and an increase of 5,86% compared to 2022. It is followed by Catalonia (29,88%), Andalusia (7,57%), the Valencian Community (4,75%) and Galicia (4,43%). At the other extreme, the Balearic Islands (0.19%), Extremadura (0.19%) and the autonomous cities of Ceuta and Melilla (0.02%) are the communities with the lowest volumes of e-invoice issuance at national level.

The Study on the use of electronic invoicing in Spain also breaks down data on the implementation of e-invoicing based on the size of the companies. The report reveals that in 2023, large companies led the growth in the issuance and receipt of electronic invoices, with an increase of 2% in issuance and a notable 13,41% in receipt compared to 2022.

CURRENTLY WORKING

New Social Security app: how does it work and what procedures does it facilitate?

The General Treasury of Social Security has launched a new mobile application with which you can access your main personal data, carry out different procedures such as registering as a self-employed person and checking your situation with Social Security. This new application, whose objective is to achieve a closer and more fluid relationship between citizens
with Social Security, also includes a special section for younger people that details information on the contributions for their training internships.

The application brings the functionalities of the Import@ss portal closer to citizens and adds some new ones, as well as the advantages of an app: receiving personalized alerts and push notifications; accessing with biometric identification - provided that you have accessed with Cl@ve Permanente - or downloading documents to the device, without needing an Internet connection. All of this with simple and accessible navigation. The most used services of this portal are the consultation and downloading of the Employment History Report, the consultation of contribution bases, the procedure for registering as self-employed or the modification of personal data.

What procedures does the app facilitate?

• The new application allows you to carry out the procedures that were already facilitated by the Import@ss portal and adds new functionalities:
• Consult and download the Employment History Report
• Consultation of contribution bases
• Self-employed registration or modification of personal data
• Updating contact information
• Inquiry or request for Social Security Number
• Management of procedures for Self-Employment or Home Employment, among others, and downloading of supporting documents
• Easy search for procedures
• Access to information on new developments in Social Security, news and videos

The meeting between the Labour and Social Partners to reduce the working day to 37.5 hours ends without an agreement

The meeting between the Ministry of Labour and Social Economy, the unions CC.OO. and UGT, as well as the employers' associations CEOE and Cepyme to reduce the weekly working day from the current 40 hours to 37.5 hours without loss of salary, held on 24 September, ended again without agreement, although they will meet again on 11 October. The Secretary of State for Labour, Joaquín Pérez Rey, stated after concluding the social dialogue meeting on the reduction of working hours, that he had perceived "a change of tone" in business organisations, with a "more constructive" attitude, and he remains confident of reaching a three-way agreement involving CCOO, UGT, CEOE and Cepyme.

After a meeting lasting almost four hours, Pérez Rey explained that the Government has outlined "with greater precision" the elements that form part of this negotiation: reducing the working week to 37.5 hours, regulating the right to digital disconnection, electronic time recording and a support plan for SMEs.

The plan, which includes bonuses for permanent employment generated by small and medium-sized companies as a result of the reduction in working hours, has been specified "in a more precise manner" by the Ministry, but Pérez Rey did not want to go into detail "out of respect" for the negotiations. "The employers' organisations, which are the most reluctant to accept the reduction in working hours, have agreed to evaluate the proposal that we have put to them. I am not going to be very precise with it out of respect for the confidentiality of the negotiations," Pérez Rey insisted.

The last meeting of the negotiating table on the reduction of working hours took place on 9 September, when the Labour Ministry brought to the social dialogue table a new proposal to help SMEs apply the reduction in working hours when it comes into force. Specifically, it is a support plan called 'Pyme 375' that includes bonuses for new permanent jobs that are generated as a result of the reduction in working hours.

IL Coworking & Legal Services signs a strategic agreement with Madrid Business Forum

 

 

IL Coworking & Legal Services has sealed a key alliance with Madrid Foro Empresarial, with the aim of strengthening the Madrid business ecosystem and providing exclusive benefits to the members of this important organization. According to the president of Madrid Foro Empresarial, "we sealed a key alliance with ILCoworking & Legal Services with which we continue with our purpose of strengthening the Madrid business ecosystem.”

Thanks to this agreement, companies and professionals associated with this organization will enjoy a 10% discount in their coworking spaces, private offices and meeting rooms. This agreement also aims to promote actions of mutual interest for the benefit of the business community, encouraging networking, training and actions that boost the competitiveness of Madrid companies.

If you travel on the Madrid Metro, you will find us

Within the powerful communication plan that is being implemented IL Coworking & Legal Services The action we have launched within the Madrid Metro is noteworthy. If you are a passenger on the Madrid underground, you will see our campaign at the Glorieta de Bilbao station, the closest to our facilities.