Up to 70% of Spanish businesses close within two years of starting up

High taxes and bureaucratic hurdles trip up entrepreneurs

LAST UPDATED: 14 Aug, 2015 @ 14:55
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small business
Most start-ups do not survive their first two years

THE Spanish government is being urged to boost its support for small businesses after new estimates reveal that between 60% and 70% of small businesses fold within two years of starting up.

Commonly cited obstacles for entrepreneurs include high taxes, lots of paperwork and a complicated bureaucracy, all of which make it difficult for fledgling businesses to gain momentum in their critical early stages.

Just this past year, a new law removing rent caps for small businesses went into effect and forced many businesses to close up shop in the face of skyrocketing leases.

Many of those businesses were decades old and had been passed down within families through multiple generations.

It is estimated that 80% of Spanish businesses are family owned and generate about 70% of national GDP.



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3 COMMENTS

  1. I have started businesses in four European countries and Spain was by far the most tiresome and inefficient. Starting a business here is highly inadvisable; Spain hates entrpreneurs and SMEs.

  2. In the UK: about 20quid a month (just NI) to be self employed.
    In Germany: nothing per month to be self employed.
    In SPain: 300euros per MONTH to be self employed. And then high taxes on top. My Bin collection rates are almost 10x my home bin rates (same type of house as well). Its f-in ridiculous. And where i live i see easily 8 out of 10 ‘businesses’ are cash in hand, no tax, illegal in every way, and ‘friends’ with the authorities.
    Dont get me started on SMEs…

  3. I thought that Spain had reduced the self employed stamp to €50 per month to encourage free enterprise and new business start ups, but I stand to be corrected. Perhaps this is just for new businesses?

    I agree with the above comments, Spain has to make itself more competitive and business friendly if it is to succeed and not end up like Greece. The next government must make business their highest priority and not just for individuals but for medium and large corporations – it needs to be easier for foreign investors/multi-nationals to start up and expand in Spain. This is the future and it is where the inward investment, wealth creation and jobs will come from.

    They must also make Spain an attractive place for wealthy Northern Europeans to relocate which means giving them property purchase security and not taxing them to death.

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